SAP ERP Central Component (ECC) support will be phased out in 2027, so corporates currently using SAP Enterprise Resource Planning (ERP) software are now planning their upgrade strategy to the replacement product – S/4 HANA.

S/4 HANA is SAP’s latest ERP product, built around an upgrade to the technical core of the ERP system. The key technical upgrade in S/4 is the SAP HANA layer, which is built around in-memory computing, offering quick and efficient access to underlying databases. Whilst technical efficiency is of course important, the value for corporates comes around the new functionality and capabilities delivered by this technical upgrade.

S/4 HANA works seamlessly with a cloud infrastructure and applications and provides capabilities around big data analytics. Even the largest data structures can be analysed on a real-time basis thanks to the in-memory data engine that underpins S/4 HANA. This architecture provides for simplification and support for previously unavailable processes in the S/4 HANA Business Suite.

For those corporates planning their route to S/4 HANA, it can seem a daunting prospect to consider changes to the banking landscape simultaneously. However, the experience of Zanders and J.P. Morgan shows this can be a highly suitable opportunity to tackle both under a single transformational project.

To download the full article ‘S/4 HANA – An Opportunity for Change‘, click on the button below.

This white paper is written by Sibren Schilders (Senior Manager at Zanders), in collaboration with Santiago Alcaraz (Executive Director, EMEA Digital Channels) of J.P. Morgan.

Last year, the world had to cope with the first impact of the pandemic. COVID-19 is a confirmation of the grim reality that black swan events continue to have an enormous impact on our lives. But is there a way to be better prepared for the unforeseeable? In this article, we look forward to the coming months and share the most relevant treasury trends for 2021 with you. What needs to be at the center of your company’s treasury plan to optimize resilience?

It all starts with cash!

In regards of financial planning, COVID-19 has created an environment where one can no longer rely on past trends and historical data. The unforeseen impact brought by this pandemic has revealed the importance of accurate real-time cash flow forecasting. Due to the increased volatility, it is vital to anticipate cash shortfalls in a prompt manner. Therefore, it is vital to assess the cash position on more frequent basis than before. This way, the treasury has the right information to make timely insightful decisions.

Traditionally, using the direct cash forecasting method in a large company with high volume of cash flows was a very time-consuming exercise and thus deemed inefficient for longer time horizons. Since a lion share of decisions are data-driven these days, many enterprises decided to refine their data governance.

A trend we expect to see in 2021 is that companies with a good handle on data governance that use predictive analytics will be using the direct method for longer time horizons more efficiently, pushing the standard rolling 13 weeks forecast to longer time horizons. As a consequence of well-established data governance, the accuracy of forecasts prepared using the indirect method should be positively impacted as well.

“It is fundamental to assess the cash position on more frequent basis than before”

Another trend for 2021, and a consequence of the COVID-19 related crisis, is that we should observe a growing number of companies using ‘what if’ scenarios in relation to their long-term, indirect method forecasts, in order to stress test the company’s financial resilience.

A trend that was already observed in 2020 and is bound to continue well into 2021, is companies increasing their leverage by taking on more debt. The favorable interest rate environment coupled with high demand from investors created incentive for the companies in search of refinancing their debt. With 2020 being a record-breaking year for debt issuance, some claim that 2021 might be record-breaking for companies struggling to service their debt.

To download the full white paper ‘Unavoidable trends for any resilient treasury plan‘, click on the button below.

Financial institutions rely on complex quantitative models, processes and systems for business steering, risk management, financial reporting and to comply with regulation.
The risk of errors in these models due to incorrect development, implementation or use is therefore of primary concern to internal and external stakeholders. At the same time, new technologies such as Big Data and Artificial Intelligence are rapidly introducing new challenges on the use, explainability or potential biases in applying such techniques.

Consequently, Model Risk has gained significant regulatory attention and many regulatory guidelines now include specific requirements on, for example, model governance. Although historically these guidelines might have primarily been targeted at banks, most of it applies to any organization making use of models, and thus extends to insurance companies, asset managers and pension funds. This has triggered an increasing demand for assurance on model quality by stakeholders of these organizations as well.

Managing Model Risks requires a comprehensive approach to model oversight that covers the entire lifecycle of the model, including development, monitoring and decommissioning. Moreover, transparency on the models that are critical to the organization will facilitate strategic decisioning on investments in model improvements or review.

In this paper the starting points for Model Risk Management and the best practices in implementing such a framework are introduced.

To download this white paper ‘Model Risk Management‘, click on the button below.

Corporate treasury is skilled at dealing with change. A large part of its job is managing the risk associated with cyclical trends, global regulatory initiatives, and geopolitical and macroeconomic events.

The corporate treasury ecosystem now faces change of a different magnitude. The pace of change is only going to further accelerate as a result of the emergence of new technologies. A fundamental shift in its role, the tools at its disposal and its relationship with the business is underway.

This report, The Future of Corporate Treasury, addresses some of these issues and contains perspectives of Citi, Zanders and some technology firms. One of its conclusions is that corporate treasurers who recognize our transformative times, prepare to take advantage of change and manage its risks will be better positioned to support the business, the C-suite and the board, and thrive in the coming decades.

To download this whitepaper ‘The Future of Corporate Treasury‘, click on the button below.