Treasury: risky business
Risk management is a strong theme throughout this edition of Treasury Today, and with good reason. Risk management is a key concern for treasurers around the world, with many struggling to understand the direction the world is heading and what this means for their operations.
Brexit is a core concern for many corporates, with the recent rhetoric from both the UK government and the European Union doing little to calm the nerves. Some companies are therefore taking proactive steps. HSBC recently told Bloomberg that some of its larger clients were already looking to book more of their trade and foreign exchange activities from mainland Europe rather than London.
The recent announcement by UK Prime Minister Theresa May that there will be another general election on 8th June has only fuelled the uncertainty and created more questions. In this edition’s Insight and Analysis, we seek to demystify the Brexit process and answer some of the burning questions treasurers are asking.
Brexit is, however, just one of a plethora of risks that treasurers are currently managing, with global political and economic uncertainty, technological advancements and the accompanying cyber risk all causing headaches. In our Risk Management article, we investigate how treasurers can get a more complete view of risk across their enterprise and use tools and technology to manage such risks more effectively.
Interestingly, a lot of this risk is now emerging from developed markets, whereas emerging markets were previously perceived as being the riskiest. That being said, treasurers cannot afford to take their eyes off the emerging markets and we explore how best to structure and manage operations in these notoriously tricky markets.
What is clear, be it when managing risk or working with emerging markets, is that treasury cannot stand still. Anticipating changes in markets, challenging assumptions and taking proactive steps to mitigate any risks these changes may create, is a must.