Trésorier/Treasurer magazine - N°93 - Apr/May/Jun 2016 - (Page 42)

DIFFERENTIATORS FOR TREASURY MANAGEMENT SYSTEMS Treasurers are facing turbulent and challenging times. The global financial crisis has caused treasury to re-focus on closely monitoring the financial markets, optimizing cash flow and managing risk management as its top priorities. As a result treasury management has become more automated through improved Straight-Through- Processing and further integration with corporate financial systems which decreases the number of manual activities and makes the process more efficient and more secure. LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE - N°93 - APR / MAY / JUNE 2016 Rethinking Treasury Technology needs 42 Although the fragmentation of the treasury system market has been reduced, treasurers still struggle with the choice of selecting a system that offers the required visibility and speed of management information while having the robustness for core treasury functionality. Based on our experience, we identified several key drivers in the Treasury Management System (TMS) selection process: * Identifying and prioritizing critical business requirements; * Identifying and evaluating solutions that can adapt to a changing business environment; * Identifying and evaluating costs and benefits associated with integration; * Assessing the software delivery model that best meets functional and economic needs; * Assessing the system vendor and developing that relationship before, during and after implementation to best serve clients' needs. Identifying critical business requirements Core functionality should always include a system that accurately supports the treasury function by providing access and visibility to cash flows, with tasks automated as much as possible, and while supporting segregation of duties and enforced controls. But what else can a strongly implemented system provide? Every treasury function operates in a different risk environment and treasurers face a multitude of differing business drivers, which should be comprehensively covered by the TMS. Recent events have now called for systems that can provide useful real-time information to better control working capital levels, have visibility on global cash balances and have the scope to robustly identify core, liquid and strategic levels of funding and liquidity. Every treasury function operates in a different risk environment and treasurers face a multitude of differing business drivers, which should be comprehensively covered by the TMS. Solutions to meet a changing business environment Cash has firmly asserted its position as ruler resulting in supporting local funding solutions being revisited, expanded or further embedded. Further advances are being made by treasurers towards more effective liquidity planning and management. This means treasury has more influence and impact over accounts receivable, collections and the order to cash cycle - with particular focus on the time value of money and credit risk, but does the current TMS provide greater visibility and control over this cash- and liquidity management process for the group and its subsidiaries? Evaluating the costs and benefits of integration How well does the system enable to obtain the information directly from other corporate system applications? Does the system facilitate the Single Euro Payment Area (SEPA)? How easy is it to run a multilateral netting program? These questions are sometimes ignored during the implementation of a TMS, but are critical in achieving an integrated solution that provides visibility and access to information that allows the treasury department to analyze and take prompt action that benefits the organization. Prioritizing the connectivity between systems should be part of considering existing and future requirements, as companies begin the selection process and certainly as implementation proceeds. Evaluating the software delivery model In the last 10 years, many well-known names in the treasury market have disappeared and others have come forward. Through consolidation, system vendors have become larger and expanded their global presence. However, many treasurers are justly concerned with the lack of competition in this market if the consolidation trend were to continue.

Table of Contents for the Digital Edition of Trésorier/Treasurer magazine - N°93 - Apr/May/Jun 2016

Cover
Table of contents
EDITORIAL
FINANCIAL HIGHLIGHTS Luxembourg Tax News
INTERVIEW David Blair - How should we set up an efficient KYC Process?
FOCUS
IFRS 9: Hedging - Treasurers will love it
From 17 to 16 reLEASE of the new LEASE accounting standard
Block chain - Is this buzz word turning into a reality?
Bank Single Gateway, the Plumbing of Bank Connectivity
FORUM
Geopolitical threats for the year ahead
Treasurers proceed with caution
Des difficultés en série pour les nouveaux entrants
Easing the Burden - Is a global KYC standard needed?
European trade repository of the year
La dette senior Européenne, un regard nouveau sur l'obligataire
CORPORATE FINANCE
Stay connected with cloud treasury technology
From stone age to straight through processing
Differentiators for treasury management systems
Complete securities financing solutions for corporates
A full and balanced "meal" for your retirement?
15 MINUTES WITH FinMetrics
THE FINANCIAL RISK OBSERVATORY
NEWS
LIFE BEYOND NUMBERS

Trésorier/Treasurer magazine - N°93 - Apr/May/Jun 2016