The CFO Perspective: The Strategic Value of Treasury

OPTIMIZING RETURN AND RISK WITH A SINGLE VIEW OF CASH 21 Sponsored by: Honda also measures treasury’s success by looking at subsidiaries’ funding efficiencies. Each business has its own funding requirements. His team works to deploy needed cash, track the internal cost of capital and balance these two. As companies expand globally, other measures of success become important, especially the careful management of capital structures and cash injections. “There are tax and regulatory considerations regarding funds transfer in emerging countries,” Honda says. That can make it difficult to access invested funds in those countries. “So, to make effective use of them, it is important to implement proper controls to maximize return on cash and minimize underutilized liquidity—before any problems arise.” A treasury management system (TMS) provides Honda with a comprehensive view of current cash holdings and future risks for all transcosmos’ global operations; it also shows the measures taken to prevent fraud. “We can make quicker decisions to enable organizational growth. This makes the TMS a strategic asset for the organization,” he says. A comprehensive treasury platform also ensures compliance with internal policies and makes it easier to identify opportunities to increase returns. Taken together, these features give a CFO the tools necessary to protect cash against external risks while maximizing return on cash—that is, to optimize every cent. We can make quicker decisions to enable organizational growth. This makes the TMS a strategic asset for the organization.