Treasury Today November/December 2018

Published: Nov 2018



The five Ps of successful treasury

Was it by accident or design that this issue has more than a few articles geared to helping treasurers prepare for and overcome adverse situations? The world has been gearing up over the past year with some interesting challenges, so perhaps for the final publication of the year such an editorial schedule was inevitable, however it came about.

The escalation of trade tensions between Washington and Beijing; continued emerging market currency weakness; the increasing risk of yet another global recession; Brexit uncertainty; rising political risk: they’re all hot topics for those who care to speculate on their outcome over coming months, and hotter still for treasurers charged with having to deal with them.

But look at almost any year with the benefit of hindsight and somewhere, something went contrary to planning. For treasurers then, it’s all part of a day’s work. That said, being a treasurer has the potential for a little too much excitement sometimes. That’s why the old adage of ‘proper preparation prevents poor performance’ rings as true now as it ever did.

In corporate financial terms, successful adherence to the aforementioned ‘five Ps’ almost certainly means timely access to accurate and relevant data. In this issue’s technology feature we consider ways of revealing and dealing with new patterns, trends and associations that exist in the vast resource that is big data.

We also contemplate specific actions treasurers can take when a black swan event ensues, considering some of the steps that can be taken to minimise the risk of these unexpected but significant occurrences. Continuing the risk theme, we ask a panel of experts to share their views on how to avoid common hedging mistakes. We follow up with a back to basics look at sanctions compliance, tackling the all-too-pertinent corporate concept of ‘knowing your customers’ customers’ and the importance of understanding the beneficial ownership of the companies with which you deal.

We live in interesting times. Michelle Obama had it about right when she said: “Your experience facing and overcoming adversity is actually one of your biggest advantages”. Well, that and a healthy amount of planning.

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