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Insight to All Things Currency and Treasury Management

Have you decided that it’s time for your organization to invest in automating your corporate currency program? You’re far from alone. With only 36% of companies still reporting fully or largely manual processes (according to the Deloitte Global Corporate Treasury Survey), many companies are truly understanding the value that an automated corporate currency program brings to the table. Chief among them? Saving time, money, deeper insights into trends, and a more sophisticated approach to a historically error-prone process.

If you’re like most companies, the next step to implementing any large-scale change and investment means having a chat with your CFO. So how can you open up the conversation for making the shift? What should you focus on in order to best articulate the need for a change?

— Increasing Predictability of EPS/EBITDA 

The number one goal of any FX program is to reduce the impact of currency on your company’s financial results. For a CFO, this is heavily gauged based on EPS/EBITDA results. Go into your conversation ready to connect Treasury’s responsibilities with your CFO’s KPIs— chief among them, delivering an Earnings Per Share (EPS) impact reduction and meeting Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) expectations. Being able to directly discuss how more reliable and efficient data can have an affect on EPS/EBITDA is one of the quickest ways to get executive attention. Even more, it’s an opportunity to focus on how you can help the business as a whole.


— Hedging Cost Reduction / Increased Productivity

One of the main things that automation can help to accurately uncover is the opportunity to reduce exposure without necessarily having to hedge. With detailed and accessible data, decisions around hedging can be made quicker and more accurately. Whether your company is inclined to hedge or chooses to exhaust all organic methods and natural offsets first, automation can help you to maximize the efficiency and effectiveness of the program. In other words, automation can help finance teams to tailor their corporate currency program to the risk tolerance of their executive team.


— Enhanced Controls

As most organizations know, auditing scrutiny on the execution of bank-related financial transactions— loans, hedges, etc.— is the norm. Your CFO’s goal is to have very clear controls when it comes to auditability, reducing risk and finding the most optimal and cost effective way to do so. By introducing automation into your program, you can eliminate the inaccuracies of manual processes and create very clear audit trails, helping to improve the overall framework quality of your program.

As with any significant change, implementing automation into your program takes time and C-level buy-in. However, by focusing on the key benefits that will help your executive team reach overall company goals, you can be well on your way to a more dependable and accessible corporate currency program sooner than you may think.