The current situation made clear how quickly a crisis can occur on an unpredictable scale (economic shot-down). Countries, economy and companies were initially overwhelmed with the Corona crisis. Even sophisticated analytical tools did not foresee such a "black swan .”
Even though the first recovery of the Corona impacts can currently be observed, the further development is very uncertain. The returning from the lockdown always bears the risk of a new rise of infection rates.
Risk management in corporate treasury is therefore more important than ever! It was and is essential to define risk areas and use scenarios to check what effects the current situation could have on the company to be prepared for appropriate measures. Depending on the intensity of the effects, the catalogue of measures must be adjusted from scenario to scenario.
The following "risk matrix" provides the treasurer with a first quick overview of potential sources of risk and helps to identify the need for action. The aim is to point out general potential consequences and make recommendations for action.
Risk Matrix
Prepared by Verband Deutscher Treasurer e.V. Risk Management-group
.png "The LEI: Unlocking the Benefits of a Secure Payments Ecosystem for Corporate Treasurers")
The EACT has been advocating for a digital identity for Corporates for many years now. We believe that, Corporates, like individuals, must have a single identity which help them to identify itself and identify third parties as well in this digital era.
Read.png "LkSG Relevant for Treasury on a Case-by-case Basis")
The Supply Chain Due Diligence Act (LkSG) creates the legal framework to improve the protection of the environment and human rights along German supply chains. GACT spoke to Dr. Julia Sitter (White & Case LLP) about the relevance and need for action by treasury departments.
Read.png "CMU, The Come-Back!")
The Capital Market Union, which was one of the main objectives of the Vander Leyen Commission, is back in the limelight, and is likely to become a priority for the next Commission next summer.
Read.png "What Will be the Corporate Treasurer's Priorities for 2024?")
General insights into the common priorities of corporate treasurers that will still be relevant in 2024.
Read.png "Counterparty Risk Assessment by Treasurers")
François Masquelier lists some comprehensive steps to best assess counterparty risks.
Read