Making Better Decisions – A Treasurer’s Perspective
Our panel discussion looked at the issues facing corporate treasurers and how they have become more complex and interconnected.
The issues facing corporate treasurers have only become more complex and interconnected. Issues including disrupted supply chains caused by geopolitical unrest and an increasingly volatile currency market have made the cost of risk a line item that not just treasurers — but the entire board — are focusing on.
While the core function of a treasurer has been to focus on managing costs and risks, over the last few years the list of responsibilities has lengthened to include supporting businesses with their growth and transformation strategies.
One of the great things about being a treasurer is the vast array of interesting challenges that we get thrown at us on a day-to-day basis.
Crucial to these increased responsibilities is access to high-quality, actionable data and analytics. The ability to make use of timely and accurate data sets is invaluable to treasurers as they make forecasts and manage the flow of capital.
However, in an increasingly complex and volatile world, the old way of modelling and forecasting is no longer enough to help business leaders make better decisions. At Aon, we are working hard to bring new innovative solutions that address an organisation’s risk and people challenges. Central to this is the use of predictive analytics, not just looking back in time but going forward, to deliver new insights and unlock access to new forms of capital.
The volatility we see in this space [interest rates and markets] is much more difficult to manage.
The insights shared by the treasurers on our panel at Aon Insights Series UK highlight the importance of actionable insights in making decisions that protect and grow their organisations.
Treasurers deal with both speculative risk — risk with a downside and upside — and non-speculative risk — risk with a downside only, such as insurance — during the course of their activities. It was agreed that unlike speculative financial markets, insurance markets are different as they are “imperfect” and require more detailed engagement to produce accurate prices for particular risks. Treasurers are getting more involved in this engagement process as they assist their organisations in sourcing alternative, or contingent, capital to support their earnings volatility and balance sheet.
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Aon Insights Series Asia
Expert Views on Today's Risk Capital and Human Capital Issues
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Expert Views on Today's Risk Capital and Human Capital Issues
Aon Insights Series UK
Expert Views on Today's Risk Capital and Human Capital Issues
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