Corporate treasurers are expected to maintain their business’ finances, and thus are naturally concerned about the financial health of their company. But new research shows that corporate treasurers’ financial concerns extend far outside the corporate walls.
Reports published Monday (July 6) found that corporate treasurers in India are extremely concerned about the “unimaginable volatility” of financial markets, according to the Deloitte 2015 India Corporate Treasury survey. More than half of respondents to the research cited that volatility as their largest worry.
Researchers found that worry is even stronger in the energy, resources and consumer businesses sector.
“Treasurers reported that lack of adequate information from business units continues to be their biggest challenge in managing global cash flows,” Deloitte concluded. “They also attributed forex and commodity price variability to difficulties in cash flow management.”
The findings reveal just how much of a global view corporate treasurers and chief financial officers take on in their position.
Inside the company, nearly half of those surveyed said that their largest challenge is a lack of clarity on exposure. Researchers found that while corporate treasurers appear to be comfortable with recent regulatory changes implemented by the Reserve Bank of India, the nation’s central bank, other legal matters make treasurers’ overall view of corporate cash flow less clear. Deloitte found that the new Companies Act and recent taxation laws affect cash pooling in particular.
Deloitte’s research cannot necessarily be generalized to corporate treasurers in the rest of the world, but recent analysis by industry experts has highlighted some other top concerns of today’s CFOs and treasury managers.
For example, a recent Capital One survey found cash flow to be the single top concern for corporate treasury officials, with 60 percent of those surveyed citing the topic as their main worry.