5 ways treasurers can overcome today’s challenges
In a constantly evolving economic context, the world of finance is often facing major challenges (fraud attempts, changes in regulations, etc.). In order to adapt to these changes, treasurers must equip themselves with technical and technological tools.
Planning for the next major upheaval
Certain factors can impact the continuity of operations (team mobility, staff shortages, etc.) This is why, treasurers must anticipate
possible risks and control the financial management of a company (cash position, investments, compliance with regulations, etc.) They must therefore put in place the necessary measures such as :
- Standards procedures for remote work
- Procedures documentation
- Employee cross-training
- A strong system with robust security and controls
Standardizing Global Payments
Centralizing a company's payment processes helps treasurers stay competitive in the marketplace.
Cash management solutions such as Kyriba's software can better manage cash flow and reduce the risk of error.
Treasurers will be able to work closely with accountants to determine how payment workflows are working and ensure the ongoing automation of payment processes.
Integral, essential fraud prevention and detection
90% of companies consider the level of payment fraud to be the same or worse than the previous year, according to the Association for Financial Professionals’ Payment Fraud and Control Survey.
Treasurers have to pay attention to BEC (Business Email Compromise), one of the attacks identified in several situations (identity theft, expanding money laundering networks...)
Optimizing liquidity through working capital solutions
Financing debts and receivables allows treasurers to limit supply chain risks.
With programs such as dynamic discounting, supply chain finance and receivables financing, companies can optimize liquidity and fuel supply chains.
Reducing inter-company transactions with multi-sided netting
Companies need to make inter-company balance sheets and payments for different activities (e.g. cost shares, dividends).
By setting up an internal bank, companies can realize benefits to facilitate the netting structure such as
- Global cash pooling
- Centralized risk management
- Payments centralization
- Optimized FX payments