OpenLink’s Corporate Treasury Survey: Cash Management And Risk Methods/Input Top Concerns (69%)

New York - 31 July 2012

Visibility of exposure, data aggregation, and enhanced accuracy designated key solution requirements

OpenLink Financial LLC (OpenLink), a leading provider of treasury, cross-asset trading, risk management and operations processing software solutions, released findings from a webinar conducted with KPMG experts and gtnews, “Responding to the New Risks in Liquidity Management,” which surveyed senior corporate treasury industry professionals.

The survey revealed the greatest challenges for these professionals when dealing with the new risks in liquidity management and market volatility:

  • Cash management structures – 37%
  • Risk management methods and input – 32%
  • Currency and country risk – 27%
  • Board reporting and compliance – 4%

During the event, Peter Barnes, Director of Corporate Treasury Advisory Services for KPMG, commented to these results by saying, “I think it reflects what is happening, certainly what I’ve been seeing with our clients. Cash is absolutely number one on their agenda, closely followed by risk management.”

Other key findings from the survey showed that 71% of those who responded are still striving to improve the quality of information, and almost 60% expressed a need to implement more robust credit and risk limit monitoring capabilities. These results imply that corporate treasurers are acutely aware of the importance of emerging financial threats and industry best practices to mitigate losses.

When polled on their risk management methods and inputs, it was revealed that 75% utilize multiple methods for measuring and managing risk; 55% implement more sophisticated risk management methods to help manage risk; and 26% have the capability to record and value credit derivatives. Experts noted during the webinar that a natural consequence of using multiple methods to measure and manage risk is coordinating then interpreting the disparate and varied information sources, and that automation is the best way to integrate and manage multiple risk management tools.

Richard Childes, OpenLink European Sales Director, said, “Risk management is becoming a predominant issue for corporate treasury as there is a greater focus on reporting to the Board of Directors and compliance driven by looming regulatory changes. Industry participants require more robust systems for optimal, proactive liquidity and collateral management.”

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