Corporate treasury seeks to establish a suitable capital structure to fund business growth, while also managing the risk landscape. Achieving the right balance between growth and risk is fundamental.

In July-August 2016 The Economist Intelligence Unit (EIU), on behalf of Deutsche Bank, surveyed 150 senior corporate treasury executives and 150 CFOs to find out how they are managing risk in challenging economic times. Respondents were drawn from across the world, with 100 in the Americas, 100 in Europe, the Middle East and Africa, and 100 in Asia-Pacific. Of these, 200 represent companies with US$2bn-5bn in annual revenue, the remainder companies with US$5bn and above.

The findings reveal that corporate treasurers are most concerned with the following risks:

  • Uncertainty about economic growth is treasurers’ top concern worldwide
  • Survey respondents seem fairly neutral about the fallout from the recent vote by British citizens to leave the EU
  • Low or even negative interest rates are triggering significant policy changes in cash management
  • Despite the intention to reduce cash holdings, the overwhelming majority of survey respondents still say they maintain fairly large amounts of excess cash
  • Regulatory developments continue to keep corporate treasurers busy
  • Respondents welcome technological change but do not necessarily embrace it
  • Treasury functions are expanding their remits, especially into risk management and capital allocation

More on Managing risk