Is Treasury Adding Value As It Should?: Strategy And Benchmark Practices

Modern treasury strategy must demonstrably match the needs of the company and meet the expectations of a wide set of stakeholders, as well as fundamentally support the business.

Treasury functions also face the added pressure of demonstrating their efficiency and effectiveness in achieving results.

Achieving the right strategic approach requires achieving the right balance between competing requirements. For example the introduction of IFRS has resulted in financial reporting having a significant effect on treasury strategy in a number of companies.

Perhaps one of the most surprising aspects of treasury strategy adopted in companies is the absence of consistency in the approach and attitude to risk management within sectors. This is not to say either approach is wrong – the key is that the approach reflects the requirements and concerns of a number of different stakeholders, but chiefly the Board of Directors.