The five-year anniversary of the global financial crisis is theperfect time to evaluate what has changed in finance since the fallof Lehman Brothers. One thing is certain: Every crisis that hasfollowed has served as a stark reminder of the interconnectednature of our global financial system. For that reason, regulatorsaround the world have begun implementing measures to improvetransparency and risk mitigation, which are critical cornerstonesof a new, modernized global financial system.

Smart treasury organizations are following suit, putting inplace processes and tools they need to gain a holistic view oftheir risks across cash, debt, and investments. Risk is everywherein treasury, and it is at the heart of why we are seeing afundamental, transformative change in the treasury function. Overhalf (58.8 percent) of respondents in the Aberdeen Group's 2013report Treasury and Risk Management: Top Financial Risks and Tools toManage Them cited financial risks as the greatest marketpressure they face today.

In the survey, Aberdeen defined “financial risks” broadly,including in the category commodity risk, counterparty risk,credit/liquidity risk, foreign exchange (FX) risk, cash locationrisk, cash forecast risk, operational risk, payment risk,settlement risk, sovereign risk, and reputational risk, amongothers. The breadth of risks within the remit of treasury is now sowide that the organization can no longer function properly if itmaintains a singular focus on either cash-related or risk-relatedactivities. Instead, treasury needs to develop a holisticperspective on risk across the enterprise. According to theAberdeen survey, 30 percent of global companies are doing justthat: They're developing the capabilities for integrated treasuryand risk management.

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