Quarter of FTSE 150 treasuries ill-prepared for volatility

by Richard Crump

More from this author

12 Jun 2012

  • Comments

A QUARTER of treasury departments among the top 150 companies that trade on the London Stock Exchange are not adequately prepared for financial volatility, research has found.

According to a survey of 95 FTSE 150 companies by Reval, 26% of respondents had no automated treasury management technology system in place, leaving companies unable to handle risks such as liquidity risk, compliance risk, fraud risk, commodity risk and counterparty risk.

"The crisis in the eurozone has been on the UK's doorstep for the past 18 months, and yet many of Britain's largest companies still rely on old systems and manual processes to manage risk," says Nigel Sirett, EMEA managing director of Reval.

Other findings from the study suggest that the lack of adequate preparation is not due to a lack of awareness or concern about risk. Forty-five percent of respondents said that counterparty risk and foreign exchange exposure risk were their top priorities for 2012. Cash management (28%), improved cash flow forecasting (15%) and improved cash visibility (14%) also featured as priorities.

"What we hear from many treasurers is that they know they need to move away from manual processes and implement a more sophisticated treasury and risk management system, but staffing and funding such a large strategic initiative is a challenge in the face of day-to-day activity. This is ironic because the implementation of a TRM system is the very thing that can allow treasurers to move away from tactical process and become a more strategic asset for their organization," Sirett said.

Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

  • Send

Charterhouse Accountants

Finance Officer

Charterhouse Accountants, Beaconsfield, Permanent, Full Time, £ Competitive




Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.