European Benchmarking Study 2011
While 2011 has put another year of distance between treasurers and the effects of the global financial crisis, there have been additional challenges and hurdles to overcome.
With the turmoil over the future of Europe still unresolved, it is no surprise that treasurers are left wondering how their company will be affected, as well as what the worst case scenario might mean for their operations in Europe. No matter what the outcome of the latest crisis to hit Europe however, the need for best practice and benchmarking in treasury remains constant.
Introduction
One step forward, two steps back?
While 2011 has put another year of distance between treasurers and the effects of the global financial crisis, there have been additional challenges and hurdles to overcome.
With the turmoil over the future of Europe still unresolved, it is no surprise that treasurers are left wondering how their company will be affected, as well as what the worst case scenario might mean for their operations in Europe. No matter what the outcome of the latest crisis to hit Europe however, the need for best practice and benchmarking in treasury remains constant.
The findings of this Study are therefore vital in assessing the impact of the current environment on the treasury department, understanding where senior executives are – and should be – devoting their energies and what the future landscape holds for treasury.
Naturally, the market uncertainty and volatility have driven treasurers to focus on core tasks such as cash visibility and forecasting, working capital management and counterparty risk. In turn, this is driving a keener focus on providing accurate measurements of key performance indicators (KPIs). As a result, we have devoted a new section of this Study to KPIs, in order to help treasuries boost their effectiveness.
In addition, new technologies are finding a role in promoting efficiency, whether it be eBAM, payment factory software or money market portals – though treasurers remain constrained by budgets, strategic plans at the group level and pressures on their own time and resources.
In terms of measuring treasury’s effectiveness, from managing bank relationships to cash pooling structures, we believe that the findings of this significant Study are both interesting and useful.
Contents
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Foreword
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Introduction
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Executive summary
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Respondent profile
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Treasury responsibilities
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Key performance indicators (KPIs)
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Cash and liquidity management
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Risk management
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Supply chain
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Technology
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Bank relationships
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The future
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Conclusions
Foreword
J.P. Morgan is delighted to continue its support of Treasury Today’s European Corporate Treasury Benchmarking Study.
As treasurers continue their navigation through challenging and complex market infrastructures, while looking to globalise and diversify their businesses, the spotlight on their role has further intensified as the economy finds itself in uncharted waters. Recent events now and around the time the Study was being conducted are further evidence that the economy is far from robust and the future contains much uncertainty.
This second European Benchmarking Study offers an ideal opportunity for the whole industry to better understand the key issues treasurers face now compared to last year’s Study, and those they will face over the next 12-18 months across a truly diverse universe, in terms of geography, industry sector and company size. Many of the challenges facing multinational corporations are also being experienced by large, mid-market and small enterprises.
The Study again covers a broad range of treasury issues and I am pleased with the consistent response rate, and the frankness of the answers, given the time constraints each one of us has.
Clearly, the difficulties within the financial industry are still being felt by companies operating across the region; never before have the roles of the CFO and group treasurer been more crucial.
As the sponsor of this Study, we have noted the findings with great interest and trust that the readers will also be able to learn from these results in identifying best practice in managing a corporate treasury effectively while looking to mitigate the risks of uncertainty.