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© Sculpture: Jos Dirix

Hot topics in corporate treasury - the survey results

Pieter de Kiewit 26-09-2017 9:48 AM
Categories: Treasury

Last month we organized a small survey, one question, to find out which treasury topics are highest on the to-do the list in corporate treasury. Both we and our partners from www.treasuryXL.com reached out to our network. Due to the set-up of the survey I want to describe the results in two separate lists. We asked one question: “make a list with a maximum of five topics”. As this was a free text survey, there was a variety of answers. In total, we had to digest a list of roughly 125 topics mentioned. I want to emphasize that the scientific methodology for this survey would not have been approved by my graduation professor.

The first list is based upon key words only, with a very narrow read on topics:
1. IFRS and other regulatory affairs;
2. Risk management (policies and procedures);
3. FX;
4. TMS;
5. Bank relations;
6. 3rd party risk;
7. Development of USD and GBP, based upon political developments;
8. Cash flow forecasting.

Bear in mind that topic 1 has been mentioned 11 times, topic 8 is mentioned 5 times. This list gives you an indication but compares strategic with operational. And both FX as well as the USD & GBP topic in one list feels suboptimal.

After some internal discussion, we decided upon a different approach. Based upon what we encounter in corporate treasury every day, we decided to cluster topics on the same abstraction level and came upon the following list, in order of how often topics were mentioned:
1. Markets & Risk, including political developments and their impact on both FX and IR (34 times);
2. Liquidity management and cash flow forecasting, including relevant cash management topics (21);
3. TMS, banking systems and fintech relevant for corporate treasury (18);
4. Bank relationship management, including banking costs, risk and bank regulations (14);
5. Regulatory affairs (IFRS) (11);
6. Corporate finance and funding specifically (10);
7. 3rd Party risk (6);

Here the difference between topic 1 and topic 7 is almost a factor 6. This list, in my opinion, paints a clearer picture. I am a bit surprised how prominent topic 1 is, how low funding is on the list and about 3rd party risk being on the list.

For us, as treasury recruiters, it is good to know what is on the list of our clients. treasuryXL will use the list to gather extra content and the students of the Hogeschool Utrecht will write blogs, using this list as input.

We look forward to your response on the results of this survey.

Pieter de Kiewit

See also https://www.treasuryxl.com/treasuryxl/hu-treasury-papers-digging-into-the-treasury-hot-topics/ 

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