Trésorier/Treasurer magazine - N°85 - April/May/June 2014 - (Page 47)

ONLINE FR/EN CORPORATE FINANCE VERSION Straight-Through Processing (STP) with Softwareas-a-Service Boon and Bane of Globalization Expansion to new markets as well as mergers and acquisitions results in ongoing change in the workflows within treasury. Left as is, global financial processes become increasingly difficult for finance professionals to manage. For example, daily account balances from multiple banks, liquidity forecasts, trades and hedges need to be collected from different entities around the world in a timely manner. Along with an organization´s expanding geographic footprint into new countries, regions or even new continents, new currencies and interest rates have to be considered in cash, liquidity and risk management, challenging treasurers to capture accurate and up-to-date market data for valuations and revaluations. In these scenarios, most finance experts spend too much time working on recurring and administrative activities, such as manual input of bank balances, transaction data or market curves into their liquidity plans. Quite often treasury is using a mixture of spreadsheet and disparate systems, requiring a huge amount of manual intervention, which leads to operational risk. In one recent Reval poll, 82% of financial professionals described their FX workflow as manual or only partly automated, showing the significant potential for improvement. Additionally, a scattered software infrastructure prevents collaboration on a global basis and introduces inefficiencies in exchanging information with different entities around the world. Aside from obstacles in daily operations, a complex IT environment also makes it difficult to extract meaningful information, as there is no single financial database. Such lack of workflow integration and visibility in financial data causes process inefficiencies as well as high operational and strategic risk, all potentially leading to real financial losses. How STP Helps Treasury Broken processes and manual operations prevent treasurers from developing global growth strategies as they simply do not have the time for strategic, value-added analysis. A Reval poll showed that 50% of finance executives feel that access to data and data integration are the biggest impediments to gaining global visibility and becoming more strategic. Thus, leading companies are beginning to centralize financial data and optimize processes. In addition, companies are looking to technology solutions to enable integrated workflows and straight-through processing with the aim of reducing the complexities globalization is bringing upon them. STP enables the entire trade process for capital markets and payment transactions to be conducted electronically without the need for re-keying or manual intervention. Its main characteristics are automation and integration of workflows. LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE - N°85 - APR Companies in many countries are beginning to assess the viability of their current treasury operations and how modern technology can help them update their organizations for today's challenges and sustain them for treasury's future challenges. Among the key technological advancements to consider is straightthrough processing (STP) offered within Software-as-a-Services (SaaS). STP is the ability to receive and process financial transactions from beginning to end without manual intervention. Offered within an integrated SaaS treasury and risk management system, it not only reduces complexity and accelerates workflows, which is critical for any treasury organization to gain a holistic view of cash and risk positions, but it also eliminates redundancies and mitigates the risk of human error. / MAY / JUN 2014 The world economy has grown on average at a rate of 3% over the last 50 years. But while growth has been spurred by increased international trade across the globe, particularly in emerging markets such as those in the Asia-Pacific region, it has also created a complex business and technology environment. 47

Table des matières de la publication Trésorier/Treasurer magazine - N°85 - April/May/June 2014

INTERVIEW L’impact du nouveau référenteil COSO sur les trésoriers

Trésorier/Treasurer magazine - N°85 - April/May/June 2014