Growing Up “Normal”

When little Bobby becomes Bob and little Katie prefers to be known as Kate it’s usually an indication that they have grown up, become more mature and in the professional world, capable of more responsibility.

The phrase, “The New Normal” emerged shortly after the Global Financial Crisis (GFC) began in 2008. It has since become industry parlance for treasury and finance professionals around the world. But what does it really mean? And in a world that has done a lot of maturing since the dawn of the GFC, is it really still applicable to call it “New”? While we can clearly link the beginning of this era of enlightened treasury to the global financial crisis, “The New Normal” has grown up. The New Normal is the “Now” Normal since it is the reality we live in where crises are the norm and risk mitigation is at an all time high. It is the present environment where treasury and finance must evolve into intelligence enabled organizations in order to react to risks of all kinds and to plan for the future. In the “Now” Normal, treasury is being called upon to be more analytical in order to support strategic decision making and grow the business. This shift is nothing short of transformational and the responsibility of it weighs heavy.

Through one of the most turbulent economic environments in history, leading companies have persevered since the start of the crisis by embracing reality and transforming the way they think and work. Today CFOs and Treasurers around the globe are taking their seat at the head of the table by working diligently towards transforming their treasuries in order to deliver the financial data and intelligence to support strategic growth. This is a stark contrast to the pre-GFC world where financial departments focused mainly on operational efficiency in daily business.

With this maturity and added responsibility, treasury technology must advance in kind to support these responsibilities and must become a more capable partner for treasury. In response to the focus on risk, traditional old-world TMS systems have evolved into a new breed of technology. This new breed, built for the normal that we now live in goes beyond enabling otherwise disparate groups to communicate and focus on daily operational efficiencies – it changes the conversation. By addressing sophisticated risk needs it gives leaders the mobility and the intelligence they need to drive their organization forward and deliver shareholder value. For these reasons a new generation of solutions for integrated Treasury and Risk Management (TRM) has emerged. Built to enable highly optimized and automated treasury processes and to support sophisticated financial risk strategies, a TRM solution makes it possible for financial risk executives, CFOs and Treasurers to align corporate finance, treasury and risk functions and concentrate on strategic challenges and objectives.

So thank you little Bobby, Katie and TMS for the role that you played. And welcome TRM to the “Now” where market volatility, swift regulatory changes, and financial crises are the accepted normal and treasury optimization to mitigate risk is a priority in order to succeed.