The four main corporate treasury drivers
by Kylene Casanova
Over the last decade, corporate treasurers’ focus has moved from transaction efficiency to a focus on overall business efficiency. The key drivers in optimising the overall cash flow efficiency of the business, are to:
1. minimise tax paid globally in all cash and treasury management, and business structures which requires:
- understanding what is required from current and changing tax regimes, e.g. new OECD transfer tax instruments, new UK GAAP rules
- systems and services to minimise tax paid
2. maximise regulatory compliance with minimum administrative overhead by:
- understanding what is required EMIR, Dodd-Frank, SOX, etc.
- using systems/ support to minimise administratio
3. minimise overall risks from:
- country risk
- regulatory compliance risk
- counter-party risk
- fraud risk
- investment risk
- FX, commodity, etc. risk
4. simplify and automate all processes to improve the effectiveness of the business overall not just treasury. This requires:
- deeper understanding of the dynamics of all processes and positions
- increased focus on business strategy
- complete solutions, not partial solutions. So corporate treasurers welcome their banks and other suppliers partnering to provide complete solutions.
Obviously, these drivers are inter-twined, but the general focus of corporate treasury is to minimise tax paid, maximise regulatory compliance, and simply and automate all processes to improve the effectiveness of the business overall. (See: What business corporate treasurers are in.)
Like this item? Get our Weekly Update newsletter. Subscribe today