Many corporate treasurers are in denial about the threat that financial fraud poses for them, according to the 2015 Kyriba/Association of Corporate Treasurers annual treasury survey. The survey of more than 300 treasury and finance professionals revealed that 53% of organisations have experienced attempted fraud (either external or internal), and more than half of these companies have suffered losses as a result of these attempts.
Despite this risk, only 11% of treasury professionals view fraud as one of their three most pressing issues for the coming year, while just 6% said that their company’s approach to fraud prevention is “poor.”
The research revealed a broad range of insights into the modern corporate treasury, particularly with an emphasis on areas such as risk and cash forecasting. Almost half of all those polled have risk management as part of their daily role, with an equal number saying it’s one of the three areas where they spend most of their time. Almost 60% of those who responded cited FX as one of their three biggest risk factors. Another common challenge is a lack of visibility into liquidity and forecasts, which – despite being one of the most time-consuming activities performed by the treasury team – is still seen as a key risk factor for 40% of treasuries.
“Given all of the current global geopolitical uncertainty and the ongoing volatility with the euro, it should come as no surprise that FX tops the list of risk factors impacting the treasury team in 2015,” said Martin Taylor, vice president of Northern European sales at Kyriba. “However, it is certainly a concern that fraud does not feature highly on most treasurers’ radars, particularly given the number of high-profile cases that have come to light on both sides of the Atlantic in the past couple of years. While FX volatility can certainly have a dramatic impact on business’ bottom lines, and treasury departments should certainly be devoting resources to minimising the exposure, fraud is an area which is often overlooked until unfortunately it is too late to resolve the issue.”
On day one of Sibos 2017, Stefan Dab, The Boston Consulting Group led a conversation examining the future of correspondent banking, and specifically the pain points corporate treasurers face in their cross-border payments operations and where technology can be developed to alleviate these.
Rising interest rates, excitement around blockchain use cases and cross-border payments were all hot topics at this year's AFP conference in San Deigo.
The US dollar and debt yields falling on the North Korea missile test, treasury being a top target for cyber criminals and why treasurers aren't into real-time payments all hit the latest headlines in the world of treasury this week. Don't miss our ten top news stories from around the world.
Treasurers are being expected to do more work with fewer resources than ever before, so it is little wonder that the automation of day-to-day operations was highly discussed on the second day of EuroFinance, the annual treasury event held in Barcelona this week.