By Eric Cohen, Principal, Financial & Treasury Management, PwC US, (Lead author), Robert Pierson, Manager, Financial & Treasury Management, PwC US and Tom Lawson, Manager, Treasury Advisory, PwC New Zealand (Contributing authors)
Three principles to consider when implementing an exposure management programme to manage financial risk effectively while also positioning your organisation for growth.
The top threats CEOs are concerned about include both uncertain economic growth and exchange rate volatility, according to PwC’s 20th CEO survey. CFOs play a critical role in helping organisations address these challenges, from identifying growth opportunities to effectively managing financial risk. So what can the CFO and finance function do to manage financial risk better while also positioning their organisation for growth?
CFOs and treasurers alike are increasingly focusing on exposure management, particularly because shifting dynamics between financial markets in today’s integrated global economy are consistently impacting companies’ financial performance. Thus, leading CFOs and treasurers are working to establish tools, processes and solutions to identify, manage and expand visibility into the company’s underlying exposure profile. Upon implementing the solutions, the enhanced tools and processes provide their organisations with a better understanding and more meaningful analysis of how financial markets impact their businesses, as well as an improved ability to explain results to investors.