What are the Priorities for Corporate Treasurers in 2023?

The following article is an experiment by the EACT Communications Working Group, using ChatGPT to answer "What are the priorities for corporate treasurers in 2023?"

In 2023, corporate treasurers are likely to focus on several key priorities to effectively manage their organization's financial operations and mitigate risks. Here are some main priorities for corporate treasurers in 2023:

1. Liquidity Management:

Ensuring adequate liquidity to meet daily operational needs and unforeseen events remains a top priority for treasurers. They will focus on optimizing cash flows, managing working capital efficiently, and implementing robust cash forecasting techniques to make informed decisions regarding investments, borrowings, and liquidity buffers.

2. Risk Management:

Treasurers will continue to emphasize risk management to safeguard their organization's financial stability. This includes monitoring and mitigating various risks such as currency fluctuations, interest rate risks, credit risks, and market risks. They will employ sophisticated hedging strategies and leverage risk management tools and technologies to protect the organization's assets and optimize financial performance.

3. Cybersecurity and Fraud Prevention:

With the increasing frequency and sophistication of cyber threats, treasurers will prioritize enhancing cybersecurity measures and implementing robust fraud prevention systems. They will collaborate closely with IT and security teams to safeguard financial data, prevent unauthorized access, and stay updated with emerging cybersecurity threats and best practices.

4. Digital Transformation:

Embracing digital technologies and automation is a key priority for treasurers in 2023. They will seek to streamline treasury operations, improve efficiency, and reduce manual processes through the adoption of advanced treasury management systems (TMS) and robotic process automation (RPA). This includes digitizing payment processes, bank account management, and transaction reconciliation, among others.

5. Sustainable Finance and ESG:

Environmental, Social, and Governance (ESG) considerations are increasingly important for organizations and their treasurers. They will prioritize integrating sustainability into their financial decision-making processes, exploring sustainable financing options, and aligning treasury strategies with ESG goals. This includes investing in green bonds, implementing green cash management practices, and reporting on ESG performance.

6. Regulatory Compliance:

Treasurers will continue to navigate complex and evolving regulatory landscapes. They will stay updated on changing financial regulations and ensure compliance with relevant laws, such as international tax regulations, anti-money laundering (AML) regulations, and data protection laws. Treasurers will work closely with legal and compliance teams to mitigate compliance risks and avoid penalties.

7. Strategic Partnerships:

Collaboration with banks, financial institutions, and technology providers will be crucial for treasurers to achieve their goals in 2023. They will focus on building strong relationships with strategic partners to access innovative financial solutions, negotiate favorable terms, and gain insights into emerging trends and market developments.

It's important to note that these priorities may vary depending on the industry, organization size, and specific circumstances. Corporate treasurers will continuously assess the needs of their organization and adapt their priorities accordingly to ensure effective treasury management.