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PWC 20255 Ts Exsumgfinal PC
PWC 20255 Ts Exsumgfinal PC
A far-reaching new global survey examines how treasury teams responded to the financial crisis and how they can emerge stronger from the experience. Here we summarise the key findings of the survey and their implications for treasury teams.
PricewaterhouseCoopers Global Treasury Survey 2010 looks at why some treasurers have been able to weather the storm better than others; assesses the long-term impact of the market dislocation and how the profession can turn the experience to its advantage. Nearly 600 treasurers from around the world took part in the survey, bringing together the widest possible spectrum of industries and company sizes, which makes this one of the most representative global surveys of its type in recent years. Dealing with the upheaval, including the impact on funding, commodity price volatility and financial counterparty risk, has provided the sternest possible test for treasury teams. Yet, it has also brought the work of treasury to the forefront of the boardroom agenda and therefore created a once-in-acareer opportunity to raise the status and influence of the function within the business.
Decreased
PwC view
While the pain of liquidity pressures and market instability is still fresh in CEOs and CFOs memory, now is the time to press the case for sufficient resources to implement treasury best practice.
Our key focus is to understand and hedge market risks together with the business and to optimise utilisation of our cash.
Survey participant
PricewaterhouseCoopers
PwC view
Treasurers need to develop scorecards to measure how much revenue/profit is made by the banks on the overall relationship. This will allow them to develop a more transparent and reciprocal relationship that highlights the mutual value being created for both sides.
During crisis
Before crisis
100
200
300
400
500
Check published credit ratings Monitor equity prices Monitor bond yields Monitor CDS spread evolution Not monitored Other
During crisis
PricewaterhouseCoopers
PwC view
A standardised, mechanical hedging approach may prove insufficient in highly volatile or illiquid markets. Treasurers need to work closely with the business to understand the dynamics that produce commodity exposures and combine this with a real in-depth knowledge of the markets to develop the optimal hedging strategy.
Contacts
If you would like to discuss any of the issues raise in this summary or the full report please contact:
Our key priorities are to create better insight into financial exposures group-wide and redefine our bank relationship management strategy.
Survey participant
Full analysis
For a copy of the full survey report please contact one of our experts listed opposite.
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