As we reported last month, a recent PwC survey found that even ascompanies stockpile cash, few treasurers are shifting portions oftheir portfolio into riskier investments to increase the yieldthey're earning.

Three-quarters of the survey's respondents said their company'scash as a percentage of total assets either increased or remainedthe same over the past year, whereas fewer than one-quarter (22percent) said that ratio has decreased. As they decide where topark this cash, survey respondents' primary goals are preservingprincipal and maintaining liquidity. Maximizing returns placed afar-distant third.

One reason PwC conducted the survey in the first place is thatmany clients were expressing interest in shifting investmentstrategies in order to increase returns on their excess cash, butthe survey found that few are actually making this move. Anotherkey finding was that most companies lack the processes and systemsthey would need to effectively manage the risks and performance oftheir portfolio if they did begin to pursue higher yield on someportion of their cash. Treasury & Risk satdown with PwC principal Peter Frank to identify the gaps anddiscuss what companies can do about them.