Most corporate treasurers in India consider the unmanageable volatility in financial markets as their largest worry, according to the findings of a corporate treasury survey from Deloitte. While this is a concern for treasurers across industry sectors, it is higher in the consumer business and the energy and resources sector.
"From being a manager of liquidity and financial risk, the role of corporate treasurers is evolving to that of a strategic advisor to support enterprise growth." said Muzammil Patel, senior director, Deloitte in India.
In order to embrace this new role, the corporate treasury of the future will need to address different facets of strategy, operations and management related to business and shareholder treasury.
Deloitte's survey sought responses from 63 Indian corporate treasurers. These treasurers reported the lack of adequate information from business units continued to be their biggest challenge in managing global cash flows. They also attributed forex and commodity price variability as reasons for difficulties in cash flow management.
While they appear to be at ease with the Reserve Bank regulations, they find taxation laws and the new Companies Act affecting cash pooling, besides a lack of quality talent in the marketplace as key external business challenges.
As much as 48 per cent of the respondents considered a lack of clear view on exposures as the single largest internal challenge. Although low in numbers, 11 per cent of the respondents also felt the corporate treasury role to be a profit centre.
"From being a manager of liquidity and financial risk, the role of corporate treasurers is evolving to that of a strategic advisor to support enterprise growth." said Muzammil Patel, senior director, Deloitte in India.
In order to embrace this new role, the corporate treasury of the future will need to address different facets of strategy, operations and management related to business and shareholder treasury.
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"Creating a robust treasury framework with functions such as treasury transformation, performance management, and predictive risk management are at the heart of enabling this transition," says Patel.
Deloitte's survey sought responses from 63 Indian corporate treasurers. These treasurers reported the lack of adequate information from business units continued to be their biggest challenge in managing global cash flows. They also attributed forex and commodity price variability as reasons for difficulties in cash flow management.
While they appear to be at ease with the Reserve Bank regulations, they find taxation laws and the new Companies Act affecting cash pooling, besides a lack of quality talent in the marketplace as key external business challenges.
As much as 48 per cent of the respondents considered a lack of clear view on exposures as the single largest internal challenge. Although low in numbers, 11 per cent of the respondents also felt the corporate treasury role to be a profit centre.