Benchmarking Treasury for Shareholder Value

1 Benchmarking Treasury for Shareholder Value Americas Linking effective treasury to shareholder value Is there a link between effective treasury risk management and improved business performance? Are companies that adhere to best practices better positioned to create shareholder value? The findings shared through this article suggest a correlation between the adoption of best-in-class risk management practices and shareholder value offering a clear path of opportunity for companies to outperform their peers financially. The Citi Treasury Advisory Group in partnership with Risk Management Solutions benchmark treasury to help clients identify opportunities to achieve world-class treasury results. This is enabled through the Citi ® Treasury Diagnostics (CTD) tool that measures companies’ performance relative to peers in six critical treasury operations areas: • Policy and governance • Liquidity • Working capital • Subsidiary funding and repatriation • Risk management • Systems and technology Trends influencing global treasury operations The latest findings from the Citi Treasury Diagnostics (CTD) survey highlight key trends among Citi’s global clients across areas such as digitization, including opportunities arising from real-time treasury technology. Approximately 400 participants took part in the study, with 41% from the Americas, 39% from EMEA and 20% from APAC; a wide range of company sizes were represented and survey participants reflected a diverse range of industries (Figure 1) . Benchmarking Treasury for Shareholder Value Corporates face a complex geopolitical and macroeconomic backdrop as well as challenges from disruptive technology and new business models. Data analysis has the power to help companies to manage risk and take advantage of new opportunities in this turbulent environment. Figure 1: Survey Participant Demographics Source: Citi Treasury Diagnostics Survey, (2014-2018). 30% Consumer & Healthcare 16% Energy, Power & Chemicals 30% Industrials 4% Bank, Insurance & Non-Insurance NBFI 18% Technology, Media & Telecommunication 2% Metals & Mining Industry Breakdown 41% 39% 20% Geographical Split EMEA APAC Turnover Size < $ 2 billion 28% $ 2–10 billion 39% $ 10–25 billion 18% > $ 25 billion 15%