Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 10

LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE

N°98

- JULY /

AUG / SEP 2017

INTERVIEW

- As digital systems become ever more integrated, the question
of cybercrime rises further up the agenda. What can Treasurers
do to ensure better security? Isn't it normal to have recrudescence of frauds when economy is such and depressed and when
technology is so sophisticated? Like doping, it looks like a forward
race where we compete with unfair competitors?
Treasurers, as the owner of risk with their organization,
should take a leadership role in the prevention of cyber crime.
By working with their business, and across their supply chain,
treasurers can adopt a more holistic understanding of cyber
fraud and approach it in a broader framework of business
resiliency. No organization will ever be 100% secure from
threats, which are evolving all the time. There will always be
a balance between providing convenience for customers and
security for the business.
Education should be a key priority for treasurers. This can
focus on training for their teams and creating a culture of
vigilance in managing cyber threats e.g. how to create secure
passwords, handle suspicious mails. It's also important to
work closely with your banking partners. At J.P. Morgan we
offer training through our ACCESS online portal. We also run
webinars for clients around emerging cyber developments
and best practice.

- Have you notice significant changes in corp's
investment and FX hedging strategies?
The devaluation of emerging market currencies and the
strength of the USD createsvolatility and challenges for
treasurers in FX management. Treasurers can respond to
this by re-evaluating FX controls and reviewing new natural
hedging opportunities. As digital payments proliferate,
treasurers will need to manage increased FX exposure as
consumers increasingly transact across borders and directly
with organisations. Treasurers can cost effectively re-engineer their balance sheets, directing surplus cash to where it
is needed e.g. for forthcoming strategic transactions, such
as an acquisition. By taking an end-to-end approach (across

the customer base, the supply chain and balancing regional
and local needs) Treasurers can work with their banks to more
effectively weigh up the benefits of hedging via concentrating
cash and pooling, for example. Some strategies treasurers
can employ include:
* Focus from a headquarter level to centralize and retain
control of the subsidiaries
* Centralize with core banks to gain better spread and efficiency in processing

- Don't you think the bank (account) relationship is changing and
that criteria for selecting banks should be adapted or have to be
reviewed?
Regulation is necessitating that treasurers approach
differently the relationship that they have with their banks.
Treasurers should partner with banks that can help navigate
the regulatory landscape and put proactive solutions in
place. Banking providers can also support them with the
emerging payment trends and new technologies, such as
utilising instant payment schemes. Treasurers may also
consider partnering with banks with capability across the
full digital payment spectrum as this area looks set to grow
exponentially.

- What should Treasurers keep in mind when seeking to adapt and
exploit changes? or some of them? Any recipes or pieces of advice
to give to our members?
Bank account and liquidity structures must be flexible to
adapt to changing regulations, policy and technological developments. As treasurers redefine their treasury structures
they should be mindful to put a structure in place (e.g. virtual
accounts) that will allow for future corporate activity - for
example a merger or spin off. So the ability to have a structure that could easily change from a multi-entity, multi-currency notional pool to a sweeping structure, or vice versa, is
key. These structures require malleability and treasurers to
get the best advice and solution for their business.

Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017

Table of Contents for the Digital Edition of Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017