Cash and Working Capital Management in the Corona Crisis

In this issue:

  1. Treasury Insights 2020 – Results of the EACT Survey
  2. Journeys to Treasury: FX Hedging in Volatile Market
  3. Journeys to Treasury: Managing the Working Capital Gap
  4. Journeys to Treasury: Cash Flow Forecasting in Uncertain Times
  5. Risk Matrix – Tools to Identify and Mitigate Risks
  6. Intragroup Financial Transactions and the Latest OECD Guidelines: Forewarned is Forearmed

Cash and Working Capital Management in the Corona Crisis

We hope you enjoy the June edition of the EACT Newsletter, which features the thoughts of 200 treasury professionals from across Europe, more insight from the Journeys to Treasury series and articles from member associations.

The eagle-eyed among you will spot that this newsletter comes from a new email address. Please add news@eactsecretariat.eu to your ‘safe senders’ lists to ensure you continue to receive uninterrupted access to the newsletter.

As ever, please do visit the EACT website and follow the EACT LinkedIn page for the very latest member association news and treasury insight.

Jean-Marc Servat
Chair, EACT

Treasury Insights 2020 – Results of the EACT Survey

200 treasury professionals from across Europe shared their thoughts on treasury’s role and priorities as part of the EACT survey. Although some survey participants responded to the survey before the official lockdown in their respective countries, many companies had already implemented measures such as stopping business travel and moving to home working.

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Journeys to Treasury: FX Hedging in Volatile Markets

In the fifth article in this special COVID-19 series, Journeys to Treasury partners consider the impact that the combination of constrained liquidity and FX volatility are having on the way that treasurers manage their FX risk.

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Journeys to Treasury: Managing the Working Capital Gap

The EACT survey conducted in March 2020 illustrated that for over half – 55% – of treasurers, cash flow forecasting will be their top priority over the next 12-24 months, with the same finding surfacing in the two most recent PwC global treasury surveys in 2017 and 2019. At a time of crisis, senior management focus on cash flow forecasts has never been more acute.

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Risk Matrix – Tools to Identify and Mitigate Risks

Risk management in corporate treasury is 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. Prepared by Verband Deutscher Treasurer e.V. Risk Management-group

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Intragroup Financial Transactions and the Latest OECD Guidelines: Forewarned is Forearmed 

For several years, treasury operations have often been framed in the transfer pricing policy. However, during these survival operations, cash requirements increase and exceptional intragroup cash transactions may take place. Here are some tips we give to treasurers to help them avoid falling into funding transfer pricing traps.

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Cash and Working Capital Management in the Corona Crisis

This article deals with short-term measures to optimize working capital and liquidity management. The strengthening of the supply chain, a currently important measure for many companies, is illustrated by an example from the retail sector.

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