Why real-time data remains a top priority for treasurers?

Treasurers recognize the value of the large amount of data they have, which is not the case when markets are more volatile. When data is used appropriately it enables better, smarter decisions and faster response to crises.

A recent survey found that foreign exchange (FX), commodity prices and liquidity risk were all top risk management priorities. judgment around
Management of these types of risks was historically driven by humans who did not rely on data as much as we do today.

Treasurers now have access to technology that can analyze data faster, deeper, and at a scale unimaginable. By eliminating error-prone and manual processes as well as unsuitable software tools such as spreadsheets, decisions can be made with more
accuracy and certainty.

What is real time data?

Real time is a stream of information generated and processed at the rate data is received, allowing for immediate analysis and decision making.

Unlike traditionally stored data, it is accessible immediately after it is created or received and is sent to users as soon as it is collected. In financial services, real-time analytics monitor financial markets, identify trends and notify trades.

This available information can also be transformative for small and medium-sized enterprises (SMEs) as they gain insight into their businesses and the economy. However, the data must be prompt, complete and of good quality.

Enhancing Risk Management Strategy

Financial risk management remains a top three priority for treasurers, which is not surprising given how volatile financial markets such as FX have been over the past 12 months, affecting the earnings of many companies.

Large fluctuations in global currencies affected companies such as IBM, which reported that FX was one of the reasons it reported $3.5 billion.
2022 revenue shortfall in fourth quarter earnings.

Kiriba Quarterly Currency Impact Report for the Third Quarter
It highlighted that North American and European companies reported $47.18 billion in negative currency impacts in 2022. This was 26% higher than the previous quarter’s loss.

Data analytics can help optimize and model appropriate hedging strategies, provide detailed insight into payment processes that can alter cash flow management, and limit unnecessary exposure across currencies.

Have you ever wondered whether you are paid on time or too early? Or what percentage of payments have been delayed, and by how much? How does this affect your cash flow and exposure to different currencies? Are you getting the best rates and hedging?
right time?

Knowing the answers to such questions can improve forecasting, detect patterns and anomalies, and enhance risk management.

Unfortunately, legacy software and manual processes are the root cause of why some CFOs and financial directors are unable to access and analyze data immediately after it is generated and captured.

How can repositories use real time data?

Today, repositories can access real-time data in many different ways. Corporates can stream live rates from their banks, plug into real-time data feeds through application programming interfaces (APIs) or use modern Treasury Management Systems (TMS).
Where such features along with trade execution and hedging capabilities are ideal.

Instruments that can provide real-time rates without any hidden fees or spreads are key to achieving fully transparent pricing. This enables a corporate to see and control the costs of its FX operations.

maximize data usage

Data analytics should be at the heart of all Treasury operations. These advanced insights can potentially be transformative, especially for SME owners.

SMEs do not have the resources of larger organizations and tasks such as maintaining positive cash flow can be challenging. If they have a more in-depth understanding of their business, they will be able to make better informed decisions.

Using tailored data and analysis from their trading history, payouts and cash flows, treasurers can make smarter decisions, review their specific corporate behavior and personalize their hedging and risk management strategies.

Treasury teams have always had a visionary job, but over the years their operational capabilities have been tested to the limits and they have been forced to change their working methods. If they want to be responsive to the rapid changes
business environment, now is the time to use data analytics.

Treasurers recognize the value of the large amount of data they have, which is not the case when markets are more volatile. When data is used appropriately it enables better, smarter decisions and faster response to crises.

A recent survey found that foreign exchange (FX), commodity prices and liquidity risk were all top risk management priorities. judgment around
Management of these types of risks was historically driven by humans who did not rely on data as much as we do today.

Treasurers now have access to technology that can analyze data faster, deeper, and at a scale unimaginable. By eliminating error-prone and manual processes as well as unsuitable software tools such as spreadsheets, decisions can be made with more
accuracy and certainty.

What is real time data?

Real time is a stream of information generated and processed at the rate data is received, allowing for immediate analysis and decision making.

Unlike traditionally stored data, it is accessible immediately after it is created or received and is sent to users as soon as it is collected. In financial services, real-time analytics monitor financial markets, identify trends and notify trades.

This available information can also be transformative for small and medium-sized enterprises (SMEs) as they gain insight into their businesses and the economy. However, the data must be prompt, complete and of good quality.

Enhancing Risk Management Strategy

Financial risk management remains a top three priority for treasurers, which is not surprising given how volatile financial markets such as FX have been over the past 12 months, affecting the earnings of many companies.

Large fluctuations in global currencies affected companies such as IBM, which reported that FX was one of the reasons it reported $3.5 billion.
2022 revenue shortfall in fourth quarter earnings.

Kiriba Quarterly Currency Impact Report for the Third Quarter
It highlighted that North American and European companies reported $47.18 billion in negative currency impacts in 2022. This was 26% higher than the previous quarter’s loss.

Data analytics can help optimize and model appropriate hedging strategies, provide detailed insight into payment processes that can alter cash flow management, and limit unnecessary exposure across currencies.

Have you ever wondered whether you are paid on time or too early? Or what percentage of payments have been delayed, and by how much? How does this affect your cash flow and exposure to different currencies? Are you getting the best rates and hedging?
right time?

Knowing the answers to such questions can improve forecasting, detect patterns and anomalies, and enhance risk management.

Unfortunately, legacy software and manual processes are the root cause of why some CFOs and financial directors are unable to access and analyze data immediately after it is generated and captured.

How can repositories use real time data?

Today, repositories can access real-time data in many different ways. Corporates can stream live rates from their banks, plug into real-time data feeds through application programming interfaces (APIs) or use modern Treasury Management Systems (TMS).
Where such features along with trade execution and hedging capabilities are ideal.

Instruments that can provide real-time rates without any hidden fees or spreads are key to achieving fully transparent pricing. This enables a corporate to see and control the costs of its FX operations.

maximize data usage

Data analytics should be at the heart of all Treasury operations. These advanced insights can potentially be transformative, especially for SME owners.

SMEs do not have the resources of larger organizations and tasks such as maintaining positive cash flow can be challenging. If they have a more in-depth understanding of their business, they will be able to make better informed decisions.

Using tailored data and analysis from their trading history, payouts and cash flows, treasurers can make smarter decisions, review their specific corporate behavior and personalize their hedging and risk management strategies.

Treasury teams have always had a visionary job, but over the years their operational capabilities have been tested to the limits and they have been forced to change their working methods. If they want to be responsive to the rapid changes
business environment, now is the time to use data analytics.