THE SOUTH AFRICAN TREASURER - FUTUREPROOFING TREASURY

44 TMI | THE SOUTHAFRICANTREASURER FUTUREPROOFING TREASURY payment cycles mean less time to respond to hacked payment systems and the risk of financial loss to treasuries is increased. Another factor recognised by many commentators as a prime risk factor is the human element – our staff. People are frequently the target of cyber criminals, either by phishing or social engineering in order to get individuals to divulge confidential company information. Strategic planning is vital In view of the plethora of risks discussed above, which is by nomeans exhaustive, what could be the solution to all the uncertainty created by internal and external factors? I think the answer lies in a combination of strategic planning and knowledge. Strategic planning is key to futureproofing companies and their treasuries, and the reason for this is that TAMSIN FREEMANTLE Tamsin is a passionate African,withmany years of experience on the African continent. She has worked in in retail banking,general management,professional services and capital markets.At the Johannesburg Stock Exchange (JSE),sheworked in business development,Africa ex-South Africa,with an emphasis onNigeria and Kenya. Tamsin’s particular interest is in offering strategic advice to organisations with operations or aspirations in Africa,and her wide range of experience on the continent gives her a unique perspective.Her current clients include FMDQ,the regulated OTC debt market inNigeria,and the JSE. Knowledge is vital both to strategic planning and to the on-going operations of the business. Notes 1 https://insights.nordea.com/en/innovation/the-biggest- cyber-threats-facing-corporate-treasuries-in-2019/ when proper strategic planning is done, the company not only creates a blueprint of aims and objectives for itself, but as part of a thorough process it also analyses all possible risks (in terms of severity), and how those risks can be mitigated. The blueprint is the key; it should be agile and dynamic with the ability to respond to changes in the company’s operating landscape. Having clarity of vision also means that companies are less-likely to be side-tracked by events, which of itself is an area of risk. A thorough understanding of the risks that may arise allows a proactive response, andminimises the possible impact of that risk materialising. Knowledge is vital both to strategic planning and to the on-going operations of the business. Operationally, knowledge of company positions is fundamental to the running of the treasury, but another aspect of knowledge is on-the-ground intelligence. This is especially true when running a multinational company and evenmore true when that business is located on the African continent. Africa may be incredibly connected digitally, via mobile phones, but there is still a dearth of country-specific knowledge. Distressingly often, governments announce regulatory measures with no fanfare, and a cross- border movement of funds that was perfectly legal yesterday is illegal today. Good and reliable local market intelligence is one effective way of mitigating this risk, and should also be included in the strategic planning. It is unlikely that we will be able to completely futureproof our treasuries, but what we can do is ensure that we are prepared for the uncertainty that living in 2019 presents us with. Planning and knowledge will go a long way towards ensuring the future of our treasuries and our businesses. n