Deloitte Corporate Treasury Survey Reveals Challenges with Global Visibility to Cash and Financial Risk Exposures

NEW YORK, Jan. 20, 2015 /PRNewswire/ -- Deloitte today released the results of its biennial "2015 Global Corporate Treasury Survey." The survey indicates that treasury groups report that their function is more strategic than ever before, with an increased focus on scaling the treasury organization, related technology to support global operations, cash repatriation and liquidity risk management. Treasurers are also looking ahead at emerging challenges in cyber threats and navigating emerging markets.

With results from more than 100 leading corporations around the globe, representing a wide array of global scales, industry footprints and geographic headquarters, the "Global Corporate Treasury Survey" is an important indicator of how modern treasury groups are adapting and reacting in today's volatile business climate.

"As treasury takes on increasingly strategic roles within the corporation, it continues to be viewed as a risk management function," says Melissa Cameron, principal, Deloitte & Touche LLP, and global treasury leader. "The findings of this survey add to our understanding of the challenges and solutions available to treasury groups as they close the gap to real-time and accurate financial exposures and control over cash exposures in all corners of the world."

Key findings of the "Global Corporate Treasury Survey" include:

• 50 percent of treasurers noted their biggest challenges are the ability to repatriate cash and to manage foreign exchange volatility.
• 40 percent of companies remain challenged by visibility into global operations, including cash and financial exposures.
• 65 percent of survey respondents reported that they rely on multiple data sources and use multiple solutions (some manual) to address their company's needs. This may lead to increased operational difficulties and risk rather than providing sufficient solutions to address these challenges.
• Centralized corporate treasury is still the most widely used operational model, with nearly 76 percent of respondents noting that treasury activities are currently handled there. A significant decrease in decentralized operations across all company sizes is strongly indicative of greater interest on the part of the respondents to use corporate treasury, centers of excellence and in-house banks.

It is critical for treasury organizations to navigate the operational and technological issues that mirror the larger threats to their colleagues across the business in emerging markets, third-party risk and cyber risk. Three particular emerging management challenges are:

Navigating restricted economies
Many companies face the opportunity of emerging market growth with the constraints of repatriation. Treasurers need to be able to speak to their boards and executives about the inter-play (and sometimes divergent outcomes) of these growth opportunities on earnings-per-share vs. cash returns, as well as discuss the liquidity and balance sheet consequences.

Increasing need for substance in foreign jurisdictions
Tax authorities are looking closely at the substance of global financing and treasury activities. Treasury teams should expect to see greater substance (decision making, scope of activities, and scale in offshore teams) in foreign treasury centers. This creates a unique opportunity to gather up the activities of countries not previously supported by treasury centers or shared services organizations.

Cyber threats have made it to treasury
Treasury departments are now being targeted in elaborate phishing, social engineering and hacking attacks. With the growing complexity of the technology infrastructure, data storage surface, and multiple access points for cyber threats, an organization's internal monitoring and surveillance strategies as a whole may not be covering the assets treasury protects. Many treasury teams have focused on traditional process and financial controls, relying on team members to support systems administration and maintenance within its "four walls."

To access the complete survey results, please visit: http://www2.deloitte.com/us/en/pages/risk/articles/2015-global-corporate-treasury-survey.html

About Deloitte's Treasury Program
Deloitte's treasury practice provides services across all areas of treasury: M&A, strategy, operating model and process transformation, treasury technology strategy, selections and implementations.

As used in this document, "Deloitte" means Deloitte & Touche LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

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