Treasury Today Country Profiles in association with Citi

European Benchmarking Study 2011

European Benchmarking Study 2011

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. Ten years ago, Treasury Today was writing about the introduction of the euro and the deep-rooted changes that would need to take place to accommodate it; today we are questioning whether the single currency will even exist going forward, at least in its present form.

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 hope that the findings of this significant Study are both interesting and useful to you in the months ahead. We would like to extend our sincere thanks to all the corporates who responded and we would, of course, welcome any feedback – please email benchmarking@treasurytoday.com. It is as a result of the number of responses received that we have been able to publish such a comprehensive and valuable report.

Contents

  • Foreword

  • Introduction

  • Executive summary

  • Respondent profile

  • Treasury responsibilities

  • Key performance indicators (KPIs)

  • Cash and liquidity management

    • Reporting

    • Cash pooling

    • Cash forecasting

    • Corporate access to SWIFT

    • Payables and receivables

    • SEPA

    • Investments

    • Borrowings

  • Risk management

  • Supply chain

  • Technology

  • Bank relationships

  • The future

  • Conclusions

To find out more, order your copy of the findings today.