Today’s situation is unlike any we’ve seen. As I write, the lockdowns and remote working are ongoing. Around the world, policymakers are tentatively modelling a gradual lifting of restrictions. For now, with businesses and commercial activity mothballed, and medium- and longer-term outlooks still difficult to call, life remains highly unpredictable. Will normality begin to creep back in at the tail end of this year? It’s hard to say. Will the way we work ever fully return to what it was? Few of us think so.
For the time being, most of us have found ways to operate at arm’s length. There are signals that boards are getting clearer in their outlook and demands. Nevertheless, the situation will remain a highly demanding one for some time.
Weeks into lockdown, many treasurers are still closely focused on liquidity – a preoccupation that won’t recede any time soon. The bigger questions – when a recovery might start, the impact on the global economies of vast central bank cash injections – are being asked with increasing urgency.
With all these thoughts in mind, this edition focuses on the strategic treasurer. As The Association of Corporate Treasurers’ Business of Treasury regularly finds, treasurers are increasingly called upon for their strategic insights. This year’s research was conducted prior to the spread of the pandemic and the wider onset of lockdown. However, respondents were as prescient as ever. This year’s findings show that technological advancement and business strategy will be priority areas for the year ahead. Communication and relationship management continue to be in the foreground. See page 6 for an overview.
The pandemic has influenced our perspective on many aspects of working life – technology foremost among them. On page 10 we find out how treasury technology has helped treasuries improve short- and mid-term cash visibility, supporting that role of the strategic treasurer. And while arguing the case for meaningful cash investments will be undeniably difficult just now, the opportunity cost for treasury technology is lower mid-recession than at other times and the pay-offs potentially easier to delineate.
As thoughts turn to recovery, it will be crucial to continue to develop thinking and practices around green and sustainable finance – not to mention the contributions that treasurers make to ESG. Navigating the differing market standards, ratings and aligning with public sentiment are all issues explored in our ESG feature on page 16.
As we continue to weather the economic and business storms heralded by the pandemic, I hope you find this edition helpful.
Keep safe and well in these unprecedented times.
- Liz Loxton
THIS ISSUE'S CONTRIBUTORS
Rachel Willcox is a business journalist who writes about finance, management and technology. Over her 20-year career she has written extensively for trade and national publications, and interviewed C-suite level executives. Twice shortlisted for MCA/Management Today writing awards, her feature on mental health is on page 14
Patricia Carrier is the project manager of the Modern Slavery Registry at the Business & Human Rights Resource Centre. She has previously worked at the UN Principles of Responsible Investment (PRI) and ShareAction. She holds an LLM in Public International Law, and her feature on modern slavery appears on page 20
James Leather is a treasury consultant with experience of large and very small entities, through treasury transformations and turnaround situations. His first treasury roles were at BAT in the Netherlands and then in the UK. He has worked in Australia in metals, construction and at Deloitte. His LIBOR article is on page 24
