Managing Risk and Opportunity through Uncertainty

TREASURY TECHNOLOGY: FUNDAMENTALS Despite nearly three-quarters (72%) of respondents reporting using a TMS/ ERP treasury module, as well as the increasing recognition of technology as an important enabler to meeting risk management objectives, less than half (45%) of survey participants reported that their treasury management system (TMS) does not support financial risk management processes. 84% Cash operations/ liquidity management 77% Treasury controls and accounting 73% Intercompany loan administration/ In-house banking 71% Short-term borrowing/ financing 63% Investing 55% Cash forecasting/ planning 55% Financial risk management 36% Supplier payments 30% Bank relationship management 21% Trade/bank guarantee issuance Processes Supported by TMS or ERP Treasury Module Companies Using Treasury Management System (TMS) or Enterprise Resource Planning (ERP) Treasury Module 72% System Access Accessed by central corporate treasury and main regional treasury center(s) Accessed by central corporate treasury only Other Accessed by all locations 33% 34% 31% 2% TREASURY TECHNOLOGY: FUNDAMENTALS (CONT.) Treasury System Interface with ERP/GL 17% 50% 30% 20% 37% 46% ERP Consolidation Integration with Bank Systems 20% 23% 57% Single Instance ERP Fully Automated Interface Fully Integrated Multiple ERP Systems Partially Automated Interface Partially Integrated GL at Business Unit No Interface No Integration Technology to support Treasury continues to be a core priority. With the digital advances taking place, deciding how best to invest resources is now a core challenge” European Treasurer A continued area of concern has been the inability of corporates to effectively integrate their technology ecosystem. 63% report that their TMS is either not integrated or only partially integrated with their ERP. This is a likely root cause for the large number of participants supporting their forecasting processes manually. 77% of clients reported that they don’t have a fully integrated ERP/TMS platform with their banks, again driving the need for manual reconciliations. 63% 77% 38 39