Corporate treasury, risk management, risk assessment and fund transparency
Corporate treasurers are faced with a growing list of challenges when investing and managing their firm’s precious capital. Now, like never before, these challenges include a series of concerns around counterparty risk, liquidity, and systemic risk inherent in owning increasingly complex instrument types. At the same time, the treasurers are becoming the go-to finance executives at many companies, as CEOs and directors lean on them to instantly report their exposure to particular funds, sectors and countries.
Corporate treasurers have more visibility within their organizations than ever before. Operating in an expanding global economy and using increasingly complex financial instruments to finance and run daily operations is a challenge. Treasurers can improve their capabilities greatly by demanding greater transparency from their trading counterparties and by leveraging near real- time information on the financial health of the firms in which they invest. They also need to develop clear, objective methods to evaluate the strength of their investments, as well as insist that their firms employ enterprise-wide risk management solutions to ensure they operate under acceptable levels of risk throughout the corporation. Once these mechanisms are in place, they can then invest with confidence and help improve their returns.
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