Cash and Liquidity Management Top Priority for 72% of Treasurers, According to Bloomberg Survey

Cash and Liquidity Management

Although the function of the role has changed considerably in recent years, most corporate treasurers, according to a survey by Bloomberg and Greenwich Associates, still hold cash and liquidity management as their primary responsibility.

Prioritizing cash and liquidity management 

The study, which was conducted by the Greenwich Associates in the latter half of 2019 and released earlier this month, surveyed 76 treasury executives from ‘large, industry-leading multinationals’.

When asked to rank-order their responsibilities, 72% of respondents said cash and liquidity management was their No.1 priority, while identifying risk and deciding on the strategy to manage that risk were ranked at No.2 and No.3, respectively.

Despite the collective precedence placed on risk management, there was little uniformity regarding the best practice methodology. 

Courtesy of Bloomberg

Conversely, there was near unanimity in citing cash and liquidity management (97%) and internal reporting (84%) among the daily tasks of those surveyed. Interestingly, six other responsibilities, ranging from risk management to compliance and regulatory requirements, were essentially tied for third spot. 

Image courtesy of Bloomberg

Refining routine processes to meet changing KPIs

Arguably the most notable finding, however, was 89% of the treasury executives claiming that their KPIs have changed in recent years. Those interviewed revealed that they are now being measured over longer periods and being asked to perform tasks that were once the purview of senior management. In fact, their time was mostly spent on completing ‘one-off projects’. 

For the larger firms who took part in the study, those whose revenues exceeded $5bn, their treasurers now dedicate more hours to isolated assignments than people management and manual processes combined. The C-Suite is turning more and more to treasuries for data-driven strategic insights, which are being leveraged for better risk management as well as capitalizing on future opportunities.

Such developments, the study’s authors surmised, require corporate treasurers to refine their regular processes if they are to reach their evolving KPIs. 

Desired Changes 

Though asked in the context of risk management, the two main changes treasurers would make to their groups also speak to the study’s broader conclusions.

Image courtesy of Bloomberg

With corporate treasuries required to help inform overall strategy through the application of analytics, it is hardly surprising that 32% would like to improve connectivity between treasury and the rest of the business and 18% desire a better quality of data.

Moreover, greater connectivity and superior data would also enhance what evidently remains the bedrock treasury activity – excellent cash and liquidity management. 

A solution for now and into the future 

At CashAnalytics, we understand just how important efficient cash and liquidity management is to companies working towards sustainable and secure growth. 

We have automated the cash forecasting and liquidity reporting processes of dozens of complex multinationals, who currently benefit from group-wide, real-time visibility over consolidated current and future cash flows and balances. 

By plugging into our cloud-based platform, our clients also gain access to a user-friendly suite of reporting and analytics tools, which allows them to uncover the insights that add high-value to their business. 

For a guided tour of the CashAnalytics treasury software, request a product demo below.

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