Treasurers and CFOs must continue to evolve their positions to face tomorrow’s problems. Today’s and tomorrow’s treasuries both rely on technology. Treasury needs:
The treasury department must expand its perspectives to keep up with the shift. Software for corporate treasury helps to keep up with the changes, but upskilling of treasury teams is also required.
Some of the skills the treasury team should have in the digital age are:
Risk management involves overseeing a company’s working capital. This includes making strategic plans on the best ways to keep the enterprise solvent. It also involves:
As a company’s treasurer, the major duty is to ensure that the business has enough cash to run smoothly. Treasury risk management is a major role as the corporate landscape has become more complex.
Here are some of the most significant risks that companies face:
Hedging balances the currency fluctuations, which has the following benefits:
Treasury’s operational risk responsibilities are limited to treasury-related procedures. But in organizations with treasury management solutions, treasury’s responsibilities generally extend to business-wide banking and settlement activities. Treasury is also in charge of :
The treasury team must balance risk and cost to discover the most cost-effective solutions for the company.
The risk management process involves the following steps:
Apart from these, businesses need three critical aspects to carry out risk management activities :
Current liquidity ratios, up-to-date credit rates, and aggregated market data on asset volatility should be used to assess and track liquidity and credit risks. HighRadius treasury solution is an AI-based treasury solution that automates and improves cash forecasting and cash management for treasury teams. Furthermore, corporate treasury software assists in proactive risk management by tracking:
Schedule a demo to learn more about how software for corporate treasury helps to manage risks.
The HighRadius™ Treasury Management Applications consist of AI-powered Cash Forecasting Cloud and Cash Management Cloud designed to support treasury teams from companies of all sizes and industries. Delivered as SaaS, our solutions seamlessly integrate with multiple systems including ERPs, TMS, accounting systems, and banks using sFTP or API. They help treasuries around the world achieve end-to-end automation in their forecasting and cash management processes to deliver accurate and insightful results with lesser manual effort.