Results from Citi's Treasury Diagnostics™ Benchmarking Survey show the continuing evolution of the corporate treasury into an internal advisor to the business, contributing to corporate strategic planning. Citi have identified three key trends that reflect the growth in scope and influence of corporate treasury:
- increasing visibility and control over cash balances, funding and risk management
- increasing adoption of centralization structures
- increasing involvement in working capital management.
Based on these findings, Citi believe there are nine top priorities for corporate treasurers in 2013:
- establishing an optimal treasury structure for emerging markets
- funding working capital optimally
- mobilizing cash reserves to gain competitive advantage
- evaluating the organizational impact of regulatory changes
- preparing for SEPA migration
- leveraging reforms in China and India
- gearing up for converging bank standards
- leveraging advanced treasury analytical tools
- transitioning to an in-house bank model.
Bankers love telling corporates what the trends are and what should be their priorities, but how do corporates describe their job and their mission. Here are some examples:
- Astra Zeneca: aim to pro-actively support the AZ business units around the world with specialist Treasury expertise
- Philips: our role is to provide business support and growth
- Akzo Nobel: Treasury builds what the business unit's need ....
- CEVA: making business flow
- Roche: Treasury = service provider for the business
- Vanguard (US fund manager): delivering accurate and compliant treasury services
- Corporate treasurer of global MNC: My mission is to enable the business to do what it wants to do.
The role of corporate treasury is no longer just managing cash, it is much wider incorporating many other activities including risk management, corporate finance and financial control. The common theme in these mission statements is the drive to support and help enhance the business at all levels, that is what corporate treasury is really about.
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