Cases of actual or attempted fraud affecting corporate treasurers have risen by 19% year-on-year, according to results of a survey conducted by financial cloud software provider Kyriba and the ACT.
In their latest joint annual poll, the partners found that 62% of respondents had been targets of either internal or external fraud over the past year – up from 43% in the previous survey.
One single incident of fraud disclosed to the researchers was valued at $2.5m.
But while fraud prevention would, on that basis, appear to be a priority area for improvement, respondents indicated they were far more focused on honing their skills in other areas, such as:
The survey report puts the level of focus on the fourth area down to the current regulatory climate. However, it notes, the fraud rise was likely to be even higher once telephone and email scams – such as CEO, IT or bank impersonations – were taken into account.
It stresses: “Even one successful fraud attempt, whether internal or external, can have significant financial implications that far outweigh the costs of implementing a more robust control environment, while the reputational damage can also be considerable.”
Treasurers’ priorities can also be explained by the finding that fewer than 60% of respondents said they have visibility of more than 80% of global cash – while more than a quarter (28%) have less than 60% visibility of forecast cash flow.
“Lack of information,” says the survey, “and the amount of time taken to create a current and forecast cash position [are] major obstacle[s] to informed liquidity and risk decisions.”
More than a third (36%) of treasury departments were found to use spreadsheets, with the figure rising once the largest companies – ie with a turnover of $10bn or more – are excluded.
However, 44% of private-sector respondents indicated that they use treasury management systems, whether installed, hosted or in the form of Software-as-a-Service.
John Campbell, vice president sales, northern Europe at Kyriba, said: “The findings of the Kyriba/ACT 2016 Annual Survey clearly show that CFOs and treasurers are embracing treasury technology to become more influential within their organisation.
“With fraud, risk management and a heightened focus on unlocking cash and working capital consuming more of treasury’s time, treasurers will benefit from modular cloud treasury management solutions that simplify implementation and align perfectly with treasury's expanding needs.”
ACT engagement director Peter Matza said: “The ACT is delighted with its long-standing partnership with Kyriba on this important survey.
“A comprehensive picture has been established over several years that makes clear the importance of treasury technology to the successful running of a contemporary corporate treasury operation.”