Association for Financial Professionals finds that treasury professionals are increasingly involved in business continuity and risk management
- Published: Wednesday, 21 September 2022 08:44
According to the 2022 AFP Strategic Role of Treasury Survey, published by the Association for Financial Professionals (AFP) and supported by Marsh McLennan, treasury professionals have expanded their role scope to support other functions. At 82 percent of organizations, treasury supports business continuity planning, and at 67 percent of organizations, treasury supports enterprise risk management.
The change in involvement in business continuity planning is particularly significant, with treasury involvement increasing from 45 percent in 2017, when involvement in enterprise risk management was then at a similar level; 44 percent.
Cash management and forecasting are a top priority for 68 percent of respondents' treasury departments. Among core functions, the emphasis placed on cash management and liquidity planning, heightened by the pandemic, remains as global issues continue to arise. Since the onset of the COVID-19 pandemic, treasury has been more focused on solving internal challenges rather than managing external concerns.
"Against a landscape of global supply chain challenges and record-high inflation, treasury has an opportunity to rise to the occasion and provide sought-after guidance and expertise." said Jim Kaitz, AFP president and CEO. "Effective communication and collaboration will be critical for treasury departments as they help their organizations navigate the prevailing uncertainty."
"Treasurers have faced many hurdles over the past two years from pandemic liquidity issues to pension performance challenges," said Richard Smith Bingham, Executive Director, Marsh McLennan Advantage. "It's encouraging that treasurers have ridden this volatility as critical partners in their companies' resiliency efforts and that they are better prepared to help their organizations manage the considerable risks ahead."
The AFP Strategic Role of Treasury Survey was conducted in May 2022 and received responses from 390 treasury professionals.