Digitalisation: The foundation for success in 2022

Digitalisation: The foundation for success in 2022 Corporates face a wide range of challenges. Rapidly rising inflation and expectations of multiple rate hikes by the Fed, will impact companies’ operating models. At the same time, geopolitical tensions have increased and the challenges created by the COVID-19 pandemic have yet to subside: supply chain pressures persist. Treasurers share their thoughts at Citi’s recent Treasury Leaders Forum The uncertain outlook should prompt a focus on strong treasury fundamentals according to Patrick Peters-Buhler, Principal, Client Advisory Group, Treasury and Trade Solutions (TTS) at Citi. Leading treasurers agree. “Treasury must up its game to mitigate any negative impacts from rising commodity prices, inflation and rates,” says Joris Janssen, Global Treasury Operations Manager at Mars. “That means a growing need to maximize cash repatriation and improve cash forecasting.” “ Risk management will be increasingly important” Hisham Abouldahab, Corporate Treasurer at Mansour Automotive, one of the largest GM dealers in the world, says that rising interest rates and FX volatility are a challenge as the company provides credit: “That means risk management will be increasingly important.” And the macro-economic environment will also be tough for suppliers, notes Baris Gokalp, Global Treasury Director at Sisecam, a leading glass manufacturer in Europe. “Supplier finance will therefore be a valuable tool to support key partners.” At the same time, treasury must also consider what the business will need to prosper in this fast-changing environment. “We need to integrate more closely with the business to help it identify potential risks, including geopolitical, compliance and regulatory, and sustainability risks,” says Alouis Ngoshi, Group Treasurer of mining technology firm The Weir Group. Digitalisation is at the heart of efforts to both strengthen treasury business-as-usual and expand the strategic reach of treasury so that it can better support the business, according to Dr. Duncan Cole, Principal, Client Advisory Group at Citi. “Process automation facilitates a shift away from people-based processes and enables better-informed decision-making in treasury,” he explains. “And it frees up treasury professionals for strategic added-value roles.”