Governance, Risk & Compliance

Governance, Risk & Compliance

January 13, 2012

'The Effective Treasury' Study is Unveiled

The downturn of many economies worldwide is causing companies to prepare for the impact of another financial crisis. Reval, a provider of an integrated Software-as-a-Service solution for enterprise treasury and risk management, in association with CFO Innovations, an online publication exclusively for top-level finance managers in the corporate sector in Asia and China, have revealed a new study entitled, “The Effective Treasury.”

The study surveyed nearly 200 CFOs, financial directors and treasurers from companies across various industries in Singapore, Hong Kong, Malaysia and China. 11 percent of Asian corporate treasuries who were polled in this recent study said that their organizations are very effective.

“With more than half of Asian companies reporting that their treasuries are adequate, we have to wonder: Is adequate good enough to continue operating in an increasingly volatile and complex business environment?,” Tony Singleton, managing director, Reval APAC, stated in a press release.

As risk continues to be a major concern among organizations, Reval’s study explores the processes and structures that respondents feel make the management of their organizations effective. Some of these practices include: the use of automated treasury management systems, significantly less reliance on spreadsheets and leveraging hedge accounting.

According to the research, nearly 68 percent of respondents have said that they plan to improve their internal processes, while 45 percent of those polled rated Web-based SaaS (News - Alert) systems as the most important technology to consider when analyzing how treasury technology can support efficient treasury management.

The most significant obstacle to effective treasury management is the tendency to view treasury as an operational rather than strategic function, the study revealed.“This sentiment is consistent across the globe, and represents a major driver for companies everywhere to improve their processes with a technology solution that enables strategic decision making across the enterprise,” Singleton noted.

Singleton also emphasized the need to have a flexible, easy-to-deploy solution that can offer a deep and broad view of the financial picture and help companies mitigate risk and meet evolving regulatory requirements in a timely fashion.

Back in October 2011, Reval announced it had inked a partnership with Fides Treasury Services Ltd., the world's largest multi-banking service bureau for corporations.

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Meenakshi Shankar is a TMCnet contributor. To read more of her articles, please visit her columnist page.

Edited by Jamie Epstein

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