Reval: Selling the Value of Transformational Treasury and Risk Technology
Posted: 25 September 2013 | Source: Reval
The responsibilities of the treasurer have expanded over the last few years as the disconnect between what a treasurer needs to support his or her broad remit and what the Chief Financial Officer is willing to fund continues to run deep. In this paper, Reval demonstrates how treasurers can frame the business case for transformative technology and sell the value of a strategic investment in next generation treasury technology.
Challenges that treasurers face today are different than they were five years ago. And treasurers know that five years from now there will be new, more complex challenges they will be facing. As stewards of their company’s financial nerve center, treasurers are living with the reality that new responsibilities and financial risks are lurking around every corner. In fact, while 86% of those surveyed in 2013 by the Association of Financial Professionals say that risk assessment is very important, 53% say they have greater difficulty today anticipating risks to their companies’ earnings than they did before the global financial crisis. In fact, the visibility of these risks – regulatory and market risks among the most pressing and unpredictable – has reached the boardroom level at 80% of companies Deloitte surveyed in the second quarter of 2013. With risk concerns at this level, the treasurer is increasingly relied upon as a strategic business partner in delivering on corporate performance. Consequently the responsibilities of the treasurer have expanded over the last few years as well. Still, the disconnect between what a treasurer needs to support his or her broad remit and what the Chief Financial Officer is willing to fund continues to run deep.
Technology solutions that will empower the treasurer and his or her organization are necessary if treasury is to deliver on the expectations of the C-suite and deliver on the growth objectives of the company. But despite the magnitude of treasury’s purview across the enterprise, it is a constant battle to prove the value of having the right resources and technology - technology that has a broad reach across the entire treasury organization and that can enable treasury to have an impact on several business functions across the enterprise.
In order to demonstrate such value, treasurers must understand:
- What makes modern treasury technology a requirement for financial transformation
- Why technology investment is strategic, not tactical
- Nothing is free, not even status quo
- Information gathering helps define value for all stakeholders