"We have been using spreadsheets to support treasury management", explains FKI group treasurer Robin Graham-Adriani, "but we have increasingly centralised our treasury activities and now have large numbers of more complex transactions. With more stringent requirements for hedge accounting and the increasing need for more sophisticated risk management, the spreadsheet approach is simply not acceptable going forward."
IT/2 was chosen by FKI after detailed evaluation, including taking references from other companies which use the software. "I have used a number of other treasury packages in the past, but I have been impressed by the ease of use and flexibility of IT/2", says Mr. Graham-Adriani, "I expect more timely and accurate information from using the system, and to free up resources currently used for the routine tasks such as the reporting of inter-company loans to group companies and keying of general ledger entries."
The implementation process will get fully underway during the summer, with focus on cash management, foreign exchange and interest rate risk management and hedge accounting. In a later phase, FKI plans to use multi-lateral netting to streamline cash management still further, subsequently reducing administration costs and bank charges.