18 TMI | THE SOUTHAFRICANTREASURER NEXT GENERATIONTREASURY Corporate treasurers need tofindways to fulfil their legal obligations, while remaining nimble. PETER RATTEY Head of Treasury Sales and Structuring, Investec Peter Rattey is the head of Treasury Sales at Investec, a position he assumed in 2010. Peter has had a long career at Investec, having previously been involved in corporate foreign exchange and sales. With over 30 years of experience in financial markets, his diverse knowledge and experience in forex pricing andworking capital solutionsmeans he has proven success in fast-paced environments. Peter manages a teamof 18 highly skilledmoneymarket and forex corporate dealers whowork closelywith treasurers, dealers, FDs and financial managers at prestigious companies and institutions – providing tailored solutions which enable them to participate in favourablemarket conditions and extract maximumvalue. market sentiment after the initial impact of the Covid-19 pandemic. Rising inflation. High inflation in the world’s leading economies is not something that businesses have had to deal with for years. While some of the inflation of the last month can be attributed to supply-side shocks, there’s a risk of inflation expectations becoming baked into consumer and business behaviour, which wouldmake the current inflationary phase more persistent. Inflation in the high single digits or even in double digits however has major implications for forward planning, especially if the business is not able to pass these rising costs onto customers. The working capital cycle. Inflation also has an impact on working capital management, as have uncertainties about supplies of key commodities or other inputs that are crucial for any business. Tomanage these, businesses are looking increasingly at ‘just in case’ strategies rather than ‘just in time’ and corporate treasurers will often need to rethink their strategies. Again, these come at a cost. ESG (environment, social, governance). These three words are on almost everyone’s lips these days and stakeholders – including investors, suppliers and customers – are increasingly asking companies pointed questions about carbon footprints, impact on society and so on. As managers of risk, the corporate treasurer increasingly needs to understand the impact of the business’s activities beyond its shareholders and customers, while scrutinising not only their own activities but also those of their counterparties in transactions. Technology, data, artificial intelligence. Once again, these are terms that are regularlymentioned, but what do they mean for the corporate treasurer? Howwell does the corporate treasurer understand the vast array of data available to the business, or how to harness it? Can technology be harnessed tomanage working capital better? Can it also be used as a way to finance and support a business’s ecosystemof suppliers and buyers? Regulation. On top of all the above complexities, companies are increasingly having to work under more onerous regulation, including stricter reporting and compliance standards. While these are designed to create a more robust business operating environment, corporate treasurers need to find ways to fulfil their legal obligations, while remaining nimble. Other challenges are likely to emerge in the coming years, but they all require a similar sort of skillset, of which we can highlight the following: l An ability to look at risks holistically, beyond the simple silos of currency, interest rates and commodity prices. Understanding the dynamics of supply chains and other operational risks that affect their businesses. l Awillingness to access new skills – and ‘unlearn’ others – whether through directly recruiting those skills or working through a trusted partner. This is particularly the case when it comes to the growing world of data science, machine learning and other related skills. l An ability to understand and exploit opportunity – in a risk-conscious way. Periods of volatility andmarket displacement have historically created opportunities and there’s no reason to believe that this time will be different. l Similarly, there’s an opportunity for corporate treasurers to ‘embed’ themselves in the strategic management of their business. The good news is that access to these next generation skills should not be a bridge too far for South Africa’s corporate treasurers. As noted above, there’s a core of knowledge, experience and resilience that underpins corporate treasuries of South Africa. By partnering with the best providers of the services and products that are available, the corporate treasurer can look to the future with confidence rather than trepidation. n
RkJQdWJsaXNoZXIy MjczOTI1