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 – Alex Caviezel, J.P. Morgan
J.P. Morgan is delighted to be the sponsor of this first Corporate Treasury Benchmarking Study conducted in the Middle East. Corporate Treasurers around the world are undergoing huge change in the wake of the global economic downturn and these findings will go some way to providing a barometer of how companies are responding.
As a region, the Middle East is experiencing its fair share of change but this Middle East Study offers an ideal opportunity to better understand the key issues being faced by CFOs and Group Treasurers today. Many of the challenges faced by the major multinational corporations are also being experienced by large, mid-market and small enterprises.
The Study covers a broad array of issues and I am delighted with the response rate given the day to day challenges and fluctuating priorities Treasurers in the region have experienced of late.
Relationships continue to be key as the findings illustrate only too well. As sponsor of this Study, we are extremely excited by the insights into the main issues affecting companies in the region today. I believe there is much to learn from these findings.