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Ask the treasuryXL expert #4 What is RPA, and what are common use cases of RPA in Treasury?
06-09-2022 | treasuryXL | Philip Costa Hibberd| LinkedIn |
treasuryXL is the community platform for everyone with a treasury question or answer! treasuryXL expert Philip Costa Hibberd is often asked what RPA exactly entails and what some typical treasury use cases for RPA are. In today’s article Ask the treasuryXL Expert, Philip tells us all about RPA software and when it is happening in treasury.
Question: “What is RPA, and what are common use cases of RPA in Treasury?”
Answer provided by Philip
What is RPA (Robotic Process Automation)?
RPA stands for Robotic Process Automation and is a software that performs rules-based work, interacting with systems, websites and applications in the same way a human would. Think of Excel Macros on steroids. With RPA, you can program robots to do the repetitive tasks that nobody wants to do. Robots work 24/7, are fast, make no mistakes, and are very cost effective
Sounds good… but does this mean that we”ll soon be out of a job? No. Quite the opposite.
Robots are great at performing repetitive, standardised and time-consuming tasks, but are not great at dealing independently with the uncertain and complex world in which treasurers operate. This is why bots and treasury professionals are such a great combination. Bots give us superpowers: they give us back the time we need to focus on the valuable activities that make the job interesting and at the same time they allow us to keep direct control over the repetitive (but often critical) processes we need to do (without actually having to do it ourselves).
What are common use cases of RPA in treasury?
Thank you for reading,
Phillip Costa Hibberd
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Get to Know TIS
05-09-2022 | treasuryXL | TIS | LinkedIn |
To give their clients the best treasury, payments, and liquidity management software and support possible, TIS is continually expanding and developing. Download the “Get to Know TIS” Factsheet to view the most recent details about their business and solution portfolio.
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Get to Know TIS
Read the factsheet to learn more about TIS. The purpose is to summarize each area of our business in order to educate readers on all the core capabilities, value-added services, and general operational expertise that TIS offers to clients.
This resource also highlights relevant stats, figures, and metrics that demonstrate TIS’ position as a global leader in enterprise payments and liquidity management. For more information about the capabilities that TIS offers or to better understand any aspect of our solution suite, request a private demo with one of our experts by emailing [email protected].
You can find the factsheet here
CFO Perspectives: How to set a currency hedging strategy
30-08-2022 | treasuryXL | Kantox | LinkedIn |
How should a CFO set their currency hedging strategy, to protect cash flows or to minimise P&L impact? In the fourth edition of CFO Perspectives, we’ll explore how senior finance professionals can choose the right path when it comes to hedging.
Credits: Kantox
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According to a recent HSBC report, the objectives of currency hedging are pretty extensive. While three-quarters of surveyed participants mention forecasted cash flows as an FX risk that their company hedges, 61% cite balance sheet items as the risk they hedge. Other participants say minimising the impact on consolidated earnings is one of their FX hedging objectives and KPIs.
The debate about whether to hedge cash flows or earnings —by removing the impact of accounting FX gains and losses— is as old as currency hedging itself. The two sides have powerful arguments in their favour.
Cash flow hedging vs balance sheet hedging
What’s the correct approach?
The debate will likely never be settled entirely. No single approach for currency risk management is definitively better than another. Different opinions may reflect the type of business activity, the preferences of investors and even managers’ own biases.
The key step for any CFO looking to establish or revamp their business’s currency hedging program is to clarify what the firm is trying to achieve. Only with enough clarity on this matter can the dangers of ad hoc or unsystematic hedging be avoided.
So, where does that leave us? This blog brings some welcome news to beleaguered CFOs as they take sides. While nothing replaces clarity regarding the key objectives of currency management, technology now makes it possible for risk managers to:
This is big news indeed!
Practical steps on the journey to the FX hedging decision
While a certain amount of debate and discussion is unavoidable when deciding the goals of a firm’s FX hedging program, a number of practical steps can be followed to determine what should be hedged.
These steps share a central concern about protecting and enhancing the firm’s operating profit margins by giving particular importance to the pricing characteristics of each business division.
These steps include:
In other words: to set a currency hedging strategy you need to do away with outdated constraints. Technology is putting to rest the traditional view of currency management as a resource-intensive activity. So the message is: give priority to your FX goals, not to the resources currently at hand.
Read the third edition of our CFO Perspectives series, 5 ways CFOs can increase the efficiency of treasury operations.