Digitally Enabling Risk Management Objectives: Accelerating to Smart Treasury

FX Risk Management Solutions Quarterly | Issue 127 | July 2020 | Trending 1 Introduction Treasury now has a critical role to play in how it manages the usual risks associated with treasury and determines the appropriate actions needed to support business recovery. In our view, the current crisis for many businesses brought about by the pandemic response of governments and health officials across the world has become the unexpected tipping point for the full automation of treasury risk management processes. “Customer appetite for prescriptive analytics has shifted with a heightened focus on automated decision support tools as part of the post COVID-19 recovery.” Ron Chakravarti, Global Head of the Treasury Advisory Group, Citi. The appetite for prescriptive analytics — the provision of digitally enabled recommendations — has shifted further as a likely consequence of the challenge faced by treasury this past quarter. Before the COVID-19 outbreak, we were already seeing a measurable shift in client appetite for prescriptive analytics to support human decision- making in treasury. 1 With the onset of the current crisis, the automation of treasury is now for many a “must- do” initiative to build the required resilience into their operation to manage risk. Risk Management Solutions DIGITALLY ENABLING RISK MANAGEMENT OBJECTIVES: ACCELERATING TO SMART TREASURY Corporate treasury is now facing change of a different magnitude. A fundamental shift in how it needs to operate, going beyond the heroic crisis response in recent months to building sustainable resilience into its operating model. The overarching objective is to prepare for a new way of managing risk across the evolving business landscape, supporting realignment in both distribution and supply chains.