Many firms today are spending a significant amount of time and resources to enhance their risk governance practices, especially in areas involving treasury such as liquidity and funding.
“Using aggregated treasury data to transfer price liquidity and funding costs at the loan level is hard.”
– Loan Officer, Large Bank
To monitor trends in treasury risk management, KPMG LLP and the Association for Financial Professionals (AFP) conducted a survey of treasury risk governance practices across a broad range of U.S. corporations. Responses from 114 non-financial firms and 42 financial firms as well as interviews with key industry treasurers, senior finance executives, and board members offer insight into these questions:
- What are the key challenges that firms face in risk governance and how are they addressing these challenges?
- What organizational changes have firms made to strengthen their risk governance and are these changes sufficient?
- Do financial and non-financial firms have different standards for risk governance?