• Speedometer and speeding cars on the highway

    Counterparty risk: know your limits

    In simple terms, counterparty risk is defined as the possibility that someone you do business with will be unable to meet their obligations to you. The higher the odds of a default are, the higher the level of counterparty risk. This is all well and good on paper, but as any treasurer knows, counterparty risk is far more nuanced in reality. It’s a multi-faceted threat that is constantly changing and evolving. In this article, we re-emphasise the need for treasurers to keep on top of counterparty risks, examining both existing and emerging threats.

  • Firefighters attacking a fire

    Make it a non-event

    Currency risk exists in one form or another for most overseas traders. Hedging may reduce or remove that risk. When and how should treasurers approach it?

  • Fear fright shadow on the wall

    Visions of risk

    Managing threats to liquidity and financial risk in a volatile economy are all part of the treasurer’s remit. Understanding risk has never been more important to avoid losses. Treasury Today looks at two contrasting but effective modes of risk management.

  • Stairs on a tight mountain path

    Running a tight ship

    From fraud to human error and natural disasters, operational risks can hit corporates in a number of ways – and can prove very costly. As awareness of these risks increases, and the technology and solutions available to help mitigate them become more sophisticated, treasurers are increasingly well-equipped to tackle this crucial area of risk management.

  • Snowboarder jumping high

    Hot commodities

    Commodity price volatility is a major risk to corporates in a variety of industries – and not just the obvious ones. While difficult to predict, it can be managed in a number of ways, ranging from simply raising awareness of the risks to hedging with derivative instruments. But why should corporates be thinking about commodity risk now more than ever before?

  • Volcano fountain in Yellowstone National Park

    Mitigating FX volatility

    In the last four years global corporations have lived through some of the most volatile times in the $5.3 trillion a day foreign exchange market. The volatility started with the global financial crisis, swiftly followed by the sovereign debt crisis in the Eurozone and, in more recent months, volatility in safe-haven currencies such as the Japanese yen and the Swiss franc. Talk of turning off the liquidity taps by the US Federal Reserve Bank also highlighted some structural weaknesses in emerging market economies such as India, which saw the rupee record some of its biggest falls against the US dollar in more than two decades.

  • Cyber hacker cracking codes

    Under cyber siege

    Cyber risk is a growing concern for businesses. But how can a treasurer help to manage this risk? In this article, we examine the nature of threat faced by companies today and the practical steps that can be taken to prevent and minimise the damage of a data breach.

  • Gold bars being weighed

    Corporate liquidity: the key to movement

    In an environment where opportunities are beginning to open up, organisations – from sales managers to treasurers – have a renewed growth agenda, and are expanding where possible. Corporates are discovering that it’s important to look internally to ensure operations are optimised and safeguarded – and well-positioned for achieving this growth.

  • Roller coaster loop upside down

    Hedging your bets

    The JPY’s 20% depreciation since November has stoked fears of increased FX volatility in 2013 and potentially a new era of currency wars. What tools can be used to protect companies from FX fluctuations? Is hedging always the answer?

  • Photo of an open bank vault

    Safeguarding your reputation

    Reputation is a highly valuable – and vulnerable – corporate asset. Building up a global name can take years and even decades, but it is surprising how little time it takes to dismantle a high-profile brand.