The results of the AFP 2022 survey on the strategic role of treasury reveal that treasury increasingly supports other functions, such as business continuity planning and enterprise risk management.
BETHESDA, MD., September 13, 2022 /PRNewswire/ — Improving payment processes and improving working capital are the two most challenging tasks facing treasury professionals today, according to AFP’s 2022 cash flow survey. strategic role of treasury, supported by Marsh McLennan.
The Treasury has also expanded its scope to take on other functions. In 82% of organizations, treasury supports business continuity planning, and in 67% of organizations, treasury supports business risk management.
This year, cash management and forecasting is a top priority for 68% of respondents’ treasury departments. Among the core functions, the focus on cash management and liquidity planning, heightened by the pandemic, remains as global issues continue to arise. Since the start of the COVID-19 pandemic, treasury has focused more on solving internal problems than managing external ones.
While soft skills remain the most in-demand for treasury professionals, the skills gap – that is, the gap between importance and effectiveness – has widened since 2020 for two traits important: the ability to collaborate and the willingness to be an agent of change.
Communication continues to be the most important skill for senior treasury practitioners and treasury teams, but there is a gap with a greater share of respondents citing the skill as important and a lower share stating that management of treasury and the treasury teams were effective in this area. .
More than half (56%) of respondents indicated that their organizations are trying to curb staff attrition in response to the “big quit”. Actions that respondents reported as being effective in preventing staff from quitting include:
- Allow flexible work arrangements (71%).
- Provide growth opportunities within the organization (53%).
- Offer better compensation/benefits (51%).
“In a landscape of global supply chain challenges and record inflation, Treasury has an opportunity to rise to the occasion and provide sought-after advice and expertise.” said Jim Kaitz, CEO of AFP. “Effective communication and collaboration will be critical for Treasury departments as it helps their organizations navigate the prevailing uncertainty.”
“Treasurers have faced many hurdles over the past two years, from pandemic cash flow issues to pension performance issues,” said Richard Smith Bingham, Executive Director, Marsh McLennan Advantage. “It is encouraging that treasurers have weathered this volatility as essential partners in their businesses’ resilience efforts and are better prepared to help their organizations manage the considerable risks ahead.”
The AFP survey on the strategic role of the Treasury was conducted in May 2022 and received responses from 390 treasury professionals. The full survey results are available on the 2022 AFP Strategic Role of Treasury Survey page. Please direct all press inquiries to Melissa Rawakgeneral manager, at [email protected].
Headquarters outside washington d.c.and located regionally in Singapore, the Association of Financial Professionals (AFP) is the professional society committed to advancing the success of treasury and finance members and their organizations. Created and administered by AFP, the Certified Treasury Professional and Certified Corporate FP&A Professional certifications set standards of excellence in treasury and finance.
SOURCE Association of Finance Professionals (AFP)