Strategic Role of Treasury

Transcription

1 2011 AFP Strategic Role of Treasury Report of Survey Results Underwritten by

2 2011 AFP Strategic Role of Treasury Report of Survey Results October 2011 Underwritten by Association for Financial Professionals 4520 East-West Highway, Suite 750 Bethesda, MD Phone Fax

3 As you know, Treasury professionals are facing significant challenges given today s volatile markets and continued economic uncertainty. It is especially relevant during such times that we have thoughtful, forward-looking perspectives on how the treasury business is continuing to evolve to meet their clients ever-changing goals. That s why SunTrust was pleased to sponsor the 2011 Strategic Role of Treasury Survey. This twenty-three question survey was sent to senior-level financial professionals asking their opinion on the current state and future challenges of the treasury business. Nearly 700 of your peers shared the extent to which Treasury professionals are adapting to the new dynamics and opportunities created over the past several years in the treasury industry. This timely report captures their unique perspectives and analysis in a format that highlights emerging trends and subtle shifts in the industry at large. Overall feedback indicates that Treasury continues to increase its strategic importance in most organizations. In addition, the increased regulatory, management and even board attention have put the spotlight back on to the more traditional cash management and liquidity functions. The findings also suggest that striking the balance between their increased strategic influence and the renewed scrutiny will be an ongoing challenge for Treasury departments. SunTrust is in the business of helping clients prosper by offering tailored solutions designed to meet the unique needs of each of their business clients. These solutions must also address the challenges presented by the economic headwinds we re experiencing and an increasingly global marketplace. We invite you to explore the insights presented in the attached report, and to consider them as you define your corporate objectives and develop your own strategic plans. I believe you ll find the results to be both interesting and illuminating. Regards, Eric Brewer Executive Vice-President of Treasury & Payment Solutions

4 Introduction The role of Treasury in organizations continues to evolve. Transactions that were previously conducted by multiple employees are now automated or outsourced. Consequently, financial professionals are faced with the challenge of applying their existing skills to strategic activities that enhance organizational financial performance. Many companies also require treasury professionals to develop new skills and use those skills in areas outside the traditional domain of Treasury. In 2003 and 2006, the Association for Financial Professionals (AFP) surveyed senior-level financial professionals on the current and future roles of Treasury in their organizations. The results from both surveys found that Treasury was playing a far more strategic role in organizations, moving beyond its traditional responsibilities for bank relationships and cash management. Heightened levels of scrutiny in the area of financial accounting, in part as a reaction to a number of high-profile bankruptcies earlier in the decade, were creating important new roles for corporate treasury professionals in the areas of SEC compliance and strategic financial planning. In addition, financial professionals had to meet the challenge of the increasingly global focus of business. The world has changed since then and there has been a re-emphasis on the traditional cash management function. Due to the sharp economic recession and financial system crisis, senior management has pointed the spotlight back onto cash management and liquidity. This raises several questions: Does the renewed interest in cash management and liquidity mean Treasury is playing a more focused role in organizations? If not, how is Treasury able to meet both its traditional cash management responsibilities along with the expanded responsibilities it has assumed in recent years? To find the answers to these and other questions, AFP sent a 23-question survey to senior-level financial professionals on the state and role of Treasury in their organizations. The survey asked about the key responsibilities of treasury departments, the resources made available to support Treasury, and the key metrics of departmental success. The resulting 673 responses are the basis of this report. AFP thanks SunTrust for its underwriting support of the AFP Strategic Role of Treasury Survey. The Research Department of the Association for Financial Professionals, which designed the survey questionnaire, analyzed the survey results and wrote/edited the report, is solely responsible for the content of this report Association for Financial Professionals, Inc. All Rights Reserved Page 1

5 Executive Summary Following the trends found in previous AFP research on the evolution of the profession, Treasury continues to take on a more strategic role within organizations. The heightened visibility of Treasury to management comes not only from expanded responsibilities but also from a heightened value attached to traditional Treasury functions such as cash and liquidity management resulting from the economic instability over the past several years. Key findings from the AFP Strategic Role of Treasury Survey include: Eighty-one percent of senior-level financial professionals report that Treasury is playing a greater strategic role in their organizations currently than it did five years earlier. Treasury s greater strategic role is the result of several factors: - Increased importance of cash management and liquidity given economic and credit market volatility (78 percent) - Senior management and Boards seeking increased visibility to liquidity and risk exposures (70 percent) - Closer monitoring of financial metrics on projects and other activities (44 percent) Treasury takes a leadership role in a number of key finance functions including bank relationship management, global treasury management, borrowing, investing and cash flow forecasting. - In addition, Treasury plays a critical role in accounting/sec compliance, mergers & acquisitions, counterparty risk analysis, business continuity planning, enterprise risk management and capital structure. - In 87 percent of organizations, the treasury group acts as an internal financial consultant to other departments. The expanded scope of Treasury has occurred even while many treasury departments committed a greater percentage of resources to traditional cash management responsibilities. - Treasury also meets its expanded mandate by: Increasing the use of automation for traditional activities (62 percent) Expanding employees skill sets through professional development (52 percent) Working additional hours (51 percent) Recruiting employees with broadened skill sets (27 percent) Just under half of financial professionals (49 percent) believe that their organizations take full advantage of the skills, talents and experience that their treasury departments have to offer. - Nevertheless, just over half of treasury departments measure and communicate the contribution of the group to executive management and the Board. Page Association for Financial Professionals, Inc. All Rights Reserved

6 Survey Results Treasury plays a greater strategic role in organizations than it did in the past, and this expanded role is expected to grow further in the coming years. Eighty-one percent of financial professionals indicate that Treasury is playing a more strategic role in their organizations than it did five years earlier. A mere six percent of survey respondents report that Treasury s role within their organizations had contracted in recent years. The 2011 survey results are consistent with trends over the past decade as the role and mandate of Treasury has expanded from its traditional base. For comparison, 71 percent of senior financial professionals in the 2003 survey indicated that their treasury department was playing a greater strategic role in their companies than it did five years prior; in the 2006 survey percentage had increased to 92 percent. Financial professionals do not expect Treasury s strategic role to shrink in the coming years. Indeed, 84 percent of survey respondents anticipate that Treasury will play an even greater strategic role over the next five years. 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% The Greater Strategic Role Played by Treasury 81% 84% 83% 84% 83% 85% All Under $1 Billion Over $1 Billion Agree that Treasury is playing a more strategic role relative to five years earlier Agree that Treasury will play a more strategic role relative in the coming five years Association for Financial Professionals, Inc. All Rights Reserved Page 3

7 While Treasury s greater strategic role is the result of several factors, it is actually Treasury s historic functions that have provided it with greater visibility in recent years. Nearly four out of five survey respondents from organizations in which Treasury plays (or is expected to play) a greater strategic role indicate that the enhanced role of Treasury originates from the higher importance placed on cash management and liquidity in the current economic environment. This greater emphasis has also had an impact on other segments of organizations. Seventy percent of respondents indicate that their organizations senior management and Board are also paying closer attention to liquidity and risk exposures, while 44 percent indicate their organizations are more closely watching financial metrics on projects and other activities. Other factors have also contributed to Treasury s expanded strategic role: Organizations have taken a more crossfunctional approach to their activities (32 percent). Organizations are finding new ways to leverage the skills that reside in Treasury (32 percent). Through professional development and hiring, treasury professionals now have a more holistic view of their organizations (22 percent). Key Reasons for Treasury s Greater Strategic Role (Percent of Respondents Indicating that Treasury Is or Will Play a Greater Strategic Role) Cash management and liquidity are more important today given economic and credit market volatility 78% 80% 77% Senior management and Board seek greater visibility to organization s liquidity and risk exposures Organization has been more closely monitoring financial metrics on projects and other activities Organization is finding new ways to leverage the skills that reside in Treasury Organization has taken a more cross-functional approach to its activities Through professional development and hiring, treasury professionals now have a more holistic view of organization Organization has reduced finance staffing, requiring all employees to contribute in a broader number of ways Senior finance professionals have been focused on compliance and reporting issues, delegating many strategic responsibilities to Treasury Page Association for Financial Professionals, Inc. All Rights Reserved

8 The current economic environment coupled with renewed emphasis in both cash and liquidity management has spurred many organizations to invest more resources in traditional treasury activities. Forty-one percent of survey respondents indicate that their organizations have increased the resources and/or time spent on traditional cash management responsibilities compared to five years earlier. This shift is more apparent in smaller organizations those with annual revenues under $1 billion; nearly half of these organizations have increased the percentage of resources spent on traditional cash management responsibilities over the past five years. Another 43 percent of respondents indicate that the resources expended by their organizations on traditional treasury functions have not changed in recent years while just 16 percent indicate that the amount of resources expended has declined. Looking forward, few financial professionals anticipate their organizations will decrease Treasury resources in the next five years. Just 11 percent of survey respondents expect their organizations to decrease the percentage of resources spent on traditional cash management responsibilities over the next five years. Large organizations those with annual revenues over $1 billion will be more likely than smaller ones to redirect resources away from treasury activities, although this is expected to occur at a very few number of organizations (15 percent). Thirty-five percent of survey respondents believe their organizations will increase the resources spent on traditional cash management responsibilities, while a small majority (54 percent) anticipate no change in Treasury-focused resources. Change in Resources/Time Spent on Traditional Cash Management Responsibilities Over Past Five Years (Percentage Distribution) Increased percentage of resources spent on traditional cash management responsibilities 41% 49% 36% No significant change in the percentage of resources spent on traditional cash management responsibilities Decreased percentage of resources spent on traditional cash management responsibilities Anticipated Change in of Resources/Time Spent on Traditional Cash Management Responsibilities Over Next 5 Years (Percentage Distribution) Increase in the percentage of resources spent on traditional cash management responsibilities 35% 40% 30% About the same percentage of resources spent on traditional cash management responsibilities Decrease in the percentage of resources spent on traditional cash management responsibilities Association for Financial Professionals, Inc. All Rights Reserved Page 5

9 As has been observed in other AFP research, Treasury plays a leadership role in many activities beyond those in traditional cash management. The vast majority of treasury departments take the lead role in the following activities: Bank relationship management (94 percent) Global treasury management (88 percent) Short-term borrowing (89 percent) Short-term investing (86 percent) Long-term borrowing (81 percent) Cash flow forecasting (79 percent) Long-term investing (74 percent) While not taking the lead, Treasury still provides important support for a number of other mission-critical financial functions in their organizations. For example, 92 percent of treasury groups participate in, but do not necessarily lead, their organizations financial risk management activities, while 91 percent have some role in working capital management and 90 percent in financial planning and analysis. Other functions in which the vast majority of treasury groups provide critical support include: Accounting/SEC compliance (88 percent) Merger & acquisitions (88 percent) Act as an internal financial consultant to other departments (87 percent) Counterparty risk analysis (86 percent) Business continuity planning (85 percent) Enterprise risk management (83 percent) Across the board, treasury departments in large organizations (those with annual revenues of more than $1 billion) are more likely to have a broader role in various finance functions than are those in smaller organizations. A few examples include: Counterparty risk analysis: 89 percent of treasury departments in organizations with annual revenues greater than $1 billion have a role in this function versus 81 percent of respondents from smaller organizations. Leasing: 82 percent of treasury departments in organizations with annual revenues greater than $1 billion have a role in this function versus 74 percent of respondents from smaller organizations. Mergers and acquisitions: 91 percent of treasury departments in organizations with annual revenues greater than $1 billion have a role in this function versus 84 percent of respondents from smaller organizations. Retirement/pension plan management: 84 percent of treasury departments in organizations with annual revenues greater than $1 billion have a role in this function versus 63 percent of respondents from smaller organizations. Page Association for Financial Professionals, Inc. All Rights Reserved

10 The Role of Treasury Within the Organization (Percentage Distribution of Organizations with Relevant Responsibility) Participation Lead Role But Not the Lead No Role Bank relationship management 94% 6% - Cash flow forecasting Borrowing: short-term Global treasury management Borrowing: long-term (capital funding/sourcing) Investing: short-term Investing: long-term Risk management: financial Working capital management (e.g., A/R, A/P, inventory) Financial planning & analysis Mergers & acquisitions Accounting/SEC compliance Internal financial consultant to other departments, business units and/or affiliated companies Counterparty risk analysis Business continuity planning Enterprise risk management Leasing Investor relations Technology implementation/management Retirement/pension plan management Insurance Employee benefit management (non-retirement) Association for Financial Professionals, Inc. All Rights Reserved Page 7

11 As noted above, the recession and its aftermath have led to a renewed focus on both cash management and forecasting by Treasury and throughout most organizations. This will not change over the coming year. Indeed, financial professionals anticipate devoting significant energy on both cash management and forecasting as the U.S. and global economies continue in their struggles to recover from the economic downturn. Nearly two-thirds of financial professionals indicate that cash management and forecasting will be key areas of focus for their treasury departments over the next 12 months. Other areas of focus will include: Financing and capital allocation (42 percent) Treasury and payment solutions (37 percent) Risk management (29 percent) Serving as a more strategic resource to their organizations (29 percent). Financial professionals from large organizations are more likely than those from smaller ones to indicate that financial and capital allocation will be key areas of focus, and their treasury groups will serve as a more strategic resource to their organizations. Respondents from organizations with annual revenues under $1 billion are more likely than their peers from larger companies to indicate that risk management will be a key area of focus for Treasury. Key Areas of Focus for Treasury Through 2012 (Percent of Respondents) Cash management and forecasting 65% 66% 63% Financing and capital allocation Treasury and payment solutions Risk management Serving as a more strategic resource to the organization Bank relationship rationalization Review investment options and policies Merger & acquisition/investment banking Credit syndicate renewal Even if the role and visibility of Treasury have broadened in recent years, Treasury s full potential in an organization may not be fully realized for a variety of reasons. Nearly a third of financial professionals indicate that a lack of resources and/or focus is the biggest challenge keeping treasury groups from having a greater influence on their organizations business strategies. In other cases, the biggest challenge is a lack of a corporate mandate (26 percent) or organizational resistance (19 percent). Page Association for Financial Professionals, Inc. All Rights Reserved

12 Biggest Challenges Preventing Treasury from Having a Greater Influence on Business Strategies (Percentage Distribution) Lack of resources/focus 32% 34% 30% Lack of corporate mandate Organization resistance Inadequate systems and/or processes Other In recent years when a treasury department has taken on additional roles, it has been able to do so while still meeting its traditional cash management responsibilities. Sixty-two percent of organizations increased their use of automation to fulfill cash management responsibilities in order to free up resources for Treasury s additional duties. Slight over half of respondents 52 percent indicate that professional development has made their organizations treasury groups more productive, allowing those departments to take on more responsibilities. Similarly, 51 percent of survey respondents indicate the additional duties have been managed by staff working additional hours. Just over a quarter of organizations have recruited employees with broadened skills sets (including those from outside of Treasury) to meet the expanded mandate. One in six organizations has added staff to their treasury groups to take on new responsibilities. For 13 percent of organizations, the additional responsibilities have been met through the increased outsourcing of traditional treasuryrelated activities. How Treasury Is Able to Meet Additional Strategic Responsibilities While Maintaining Traditional Treasury Responsibilities (Percent of Organizations) Increased automation of traditional activities 62% 60% 63% Expanding employee skill set through professional development Work additional hours Recruit employees with broadened skill sets, including those outside traditional treasury functions Increased staffing Increased use of outsourcing solutions No longer conducting certain tactical treasury activities Other Association for Financial Professionals, Inc. All Rights Reserved Page 9

13 In a majority of organizations (55 percent), the size of the treasury team has neither expanded nor contracted. If there were a change, the bias was towards payroll expansion. Just over a quarter of organizations have added to their treasury department staffing over the past three years, while only 19 percent of organizations have shed treasury staff during the same time period. Larger organizations those with annual revenues of more than $1 billion were more likely than smaller ones to have added to their treasury staffs over the past three years: 30 percent versus 21 percent for organizations with annual revenues of less than $1 billion. While two-thirds of survey respondents anticipate no change in treasury department staffing over the next three years, 27 percent expect their organizations treasury staffing will expand during the same time frame. Only five percent of survey respondents expect their treasury department payrolls will contract in the coming three years. Change in Treasury Department Staffing Over the Past 3 Years (Percentage Distribution) Increased 26% 21% 30% Stayed the same Decreased Anticipated Change in Treasury Department Staffing Over Next 3 Years (Percentage Distribution) Increased 27% 23% 30% Stay the same Decreased Page Association for Financial Professionals, Inc. All Rights Reserved

14 The 2006 AFP Strategic Role of Treasury Survey looked at a relatively new role for many treasury departments: contributing to their organization s top-line and/or bottom-line growth. In many cases, Treasury conducts activities that impact the financial performance of other departments within an organization (e.g., financial hedging of commodities used in an organization s products). In other cases, treasury activities themselves may generate revenue or profits (e.g., investments of an organization s cash holdings). As demonstrated in the annual AFP Liquidity Survey series, the primary focus in most organizations short-term investment strategies is preservation of the investment principal. Consequently, in recent years organizations have placed less emphasis on their Treasury groups abilities to generate revenue and/or profits. Respondents to the 2011 survey confirm this. Just 46 percent of treasury departments are expected to generate either revenue or profits for themselves or to support another department (e.g., manage hedging activities for key commodities, etc.). A third of organizations expect Treasury to be a revenue/profit center while 31 percent expect Treasury to generate revenue and/or profits for other departments. In the 2006 survey, 58 percent of financial professionals indicated that their treasury departments were expected to generate either revenue or profits for the departments themselves or to contribute to another department s ability to generate revenue or profit. Expectations for Treasury Departments to Generate Either Revenues or Profits (Percentage Distribution of Publicly Traded or Privately Held Organizations) Not expected to generate revenue/profits 54% 51% 58% Expected to generate revenue/profits for the treasury department Expected to generate revenue/profits for other department(s) Expected to generate revenues/profits for both Treasury and other departments Association for Financial Professionals, Inc. All Rights Reserved Page 11

15 Outside of revenue and/or profit generation, there are other measures that can be used to evaluate the contributions made by Treasury to an organization. Several of these metrics are tied to reduced costs. Sixty-two percent of organizations gauge the success of their treasury groups according to the degree to which Treasury is successful in reducing banking expenses. Fifty-seven percent of organizations measure their treasury groups success by Treasury s ability to reduce borrowing costs. Just under half of organizations measure success by the effectiveness of Treasury s management of risk, achieving liquidity targets and/or by providing capital structure support. Organizations with annual revenues greater than $1 billion are more likely than smaller ones to measure the success of their treasury groups by Treasury s success in reducing banking expenses and borrowing costs, providing capital structure support, liquidity targets and the effectiveness of their risk management techniques. On the other hand, smaller organizations are more likely than larger ones to pay close attention to the ability of Treasury to generate income. Key Metrics of Treasury Departments Success (Percent of Organizations) Reduced banking expenses 62% 57% 66% Reduced borrowing costs Liquidity targets Risk management effectiveness Capital structure support Income generation (e.g., interest, rebate, etc.) Other Page Association for Financial Professionals, Inc. All Rights Reserved

16 Heightened visibility brings with it greater accountability since there is greater focus on Treasury s contributions to an organization. Just over half of treasury groups measure and communicate the results to their organizations executive management and Board of Directors. 100% Measurement and Communication to Executive Management and Board of Treasury s Contribution to Company Performance (Percentage Distribution) 90% 46% 48% 45% 80% 70% 60% 50% 40% 54% 52% 55% Treasury department does not measure and communicate results to executive management/board 30% 20% 10% Treasury department measures and communicates results to executive management/board 0% All Under $1 Billion Over $1 Billion Just under 60 percent of survey respondents indicate that their organizations either have operations outside of their home (headquarters) nation or conduct some form of global commerce (for example, an organization imports and/or exports goods/raw materials). In such organizations, Treasury plays a critical role in the success of global operations. In 93 percent of organizations with global operations, Treasury plays an important or very important role in global cash management operations and in global bank relationship management. Treasury also is likely to play a critical role in managing an organization s foreign exchange risk (cited by 79 percent of survey respondents) and their global investments (70 percent). Other areas in which Treasury plays an important role in global operations include: Merger and acquisitions (45 percent) Supply chain financing (39 percent) Taxes (38 percent) Association for Financial Professionals, Inc. All Rights Reserved Page 13

17 Importance of Treasury s Role in Global Operations (Percentage Distribution of Organizations with Global Operations) Very Somewhat Not at all Important Important Important (5) (4) (3) (2) (1) Banking 79% 14% 4% 1% 2% Cash management Foreign exchange risk Investments Taxes Supply chain financing Merger & acquisitions Retirement plans As organizations become more global, their treasury groups face a number of challenges in trying to meet the expanding needs resulting from a wider global footprint. Twenty-eight percent of survey respondents indicate that the biggest challenge as their organizations become more global is rationalizing bank structures to meet the strategic and operating needs of the organizations. Slightly more than one fifth (22 percent) of respondents report that Treasury faces significant challenges in implementing the proper controls or gaining a better understanding of business practices and social norms in other nations. Greatest Challenge as Treasury Becomes More Global in Scope (Percentage Distribution of Organizations with Global Operations) Rationalizing a banking structure to meet strategic 14% and operating needs 28% 28% 28% Implementing controls (policies and procedures) Better understanding business practices and social norms in other nations Finding/implementation of technology Recruiting the right people internationally Recruiting the right people domestically Other Page Association for Financial Professionals, Inc. All Rights Reserved

18 Even as Treasury continues to expand its mandate and the critical role cash and liquidity management have continued to play in many organizations in recent years, financial professionals see Treasury as an untapped resource that could drive their organizations to greater success. Just under half of financial professionals (49% percent) believe their organizations fully utilize the skills and talents that they and their colleagues in Treasury could provide to their organizations a result despite treasury departments having put formal mechanisms in place that measure and communicate Treasury performance to other segments of their organizations. 100% Use of Treasury to Optimize Organizations Financial Performance (Percentage Distribution) 90% 46% 48% 45% 80% 70% 60% 50% 40% 30% 20% 10% 54% 52% 55% Organization does not take full advantage of its Treasury department s skills, talent and experience to optimize financial performance Organization takes full advantage of its Treasury department s skills, talent and experience to optimize financial performance 0% All Under $1 Billion Over $1 Billion Association for Financial Professionals, Inc. All Rights Reserved Page 15

19 Conclusions In the five years since AFP conducted its previous Strategic Role of Treasury Survey, Treasury s role in organizations has continued to evolve. Indeed, the definition of Treasury has expanded over the past decade to include responsibilities that currently include risk management, investor relations, strategic financial planning, business continuity, merger & acquisition, and accounting/sec compliance. Further, treasury groups are relied upon as internal financial consultants by many throughout their organizations. The expanded role of Treasury has come as traditional functions such as cash management and optimizing organizational liquidity have assumed greater visibility with senior management and Boards. The reason: uncertainty about the economy has made successful execution of these two functions a critical linchpin in determining whether an organization is financially successful or is struggling to stay afloat. The uneven economic recovery suggests that organizations will continue to turn to Treasury in the coming years. These added duties represent both a challenge and an opportunity for treasury groups and their teams. Many treasury departments are taking on additional responsibilities without the benefit of additional staff and, in many cases, have had to divert resources back to traditional treasury functions. As a result, financial professionals have had to work more hours but do so smarter and more efficiently. Outsourcing and technology will continue to be ways through which to meet this goal, but will also expand the capabilities of financial professionals and help elevate their role and influence throughout organizations. The service and accomplishments of treasury teams have greater visibility with both senior management and the Board than ever before. By achieving key metrics on reducing banking and lending costs while at the same time meeting liquidity targets, Treasury gains additional opportunities to expand further. This naturally opens up a greater number of career paths for many treasury team members. Despite the greater attention paid to Treasury, nearly half of financial professionals believe that Treasury is not fully utilized by their organizations. Greater success in articulating the value of Treasury will benefit not only an organization s treasury department, but also the organization as a whole. Page Association for Financial Professionals, Inc. All Rights Reserved

20 About the Survey In September 2011, the research department of AFP surveyed its senior level corporate practitioner membership on the state of Treasury within their organizations. Job titles of the survey sample included CFO, treasurer, controller, vice president of finance, and assistant treasurer. The 3,793 surveys sent out to this group generated 431 responses. The resulting response rate adjusted for undelivered was 12 percent. AFP also sent surveys to non-members with similar job titles, generating an additional 242 responses. The total 673 responses are the basis of this report. The respondent profile closely models that of AFP s membership. For example, the typical respondent works for an organization with annual revenue greater than $1 billion. Respondents work in organizations across a broad spectrum of industries, with the top industries being manufacturing, retail/wholesale, energy, insurance, health services, and telecommunications. AFP thanks SunTrust for its underwriting support of the AFP Strategic Role of Treasury Survey. The Research Department of the Association for Financial Professionals, which designed the survey questionnaire, analyzed the survey results and wrote/edited the report, is solely responsible for the content of this report. Annual Revenues (Percentage Distribution) Under $50 million 6% $ million 3 $ million 10 $ million 10 $ million 17 Organization s Ownership Type (Percentage Distribution) Publicly owned 40% Privately held 37 Non-profit (non-for-profit) 12 Government (or government owned entity) 11 $1-4.9 billion 31 $5-9.9 billion 9 $10-20 billion 7 Global Operations and Trade (Percentage Distribution) Organization has operations overseas 31% 27% 34% Organization conducts global commerce Organization both has operations overseas and conducts global commerce Organization neither has operations overseas nor does it conduct global commerce Association for Financial Professionals, Inc. All Rights Reserved Page 17

21 AFP Research AFP Research provides financial professionals with proprietary and timely research that drives business performance. The AFP Research team is led by Managing Director, Research, Kevin A. Roth, PhD, who is joined by a team of research analysts. AFP Research also draws on the knowledge of the Association s members and its subject matter experts in areas that include bank relationship management, risk management, payments, and financial accounting and reporting. Study reports on a variety of topics, including AFP s annual compensation survey, are available online at About the Association for Financial Professionals The Association for Financial Professionals (AFP) headquartered in Bethesda, Maryland, supports more than 16,000 individual members from a wide range of industries throughout all stages of their careers in various aspects of treasury and financial management. AFP is the preferred resource for financial professionals for continuing education, financial tools and publications, career development, certifications, research, representation to legislators and regulators, and the development of industry standards. General Inquiries Web Site AFP@AFPonline.org Phone

22 Cash flow is your company s lifeblood. Keep it running at peak performance. Greenwich Excellence Awards in Treasury Management Overall Satisfaction t Product Capabilities t Customer Service t Accuracy of Operations Success in today s business climate requires someone you can rely on to help you anticipate DQG DGGUHVV ZKDW OLHV DKHDG )URP PD[LPL]LQJ HIÀFLHQFLHV across payment channels to gaining visibility required for accurate forecasting and reporting, SunTrust can make your working capital work hard under any circumstances. To learn how we can help your business, call or visit suntrust.com/commercialsolutions. Treasury & Payment Solutions Liquidity Management Fraud Protection Risk Management Credit subject to normal criteria. Risk Management and Investment Banking solutions provided through SunTrust Robinson Humphrey. SunTrust Robinson Humphrey is the trade name for the corporate and investment banking services of SunTrust Banks, Inc., and its subsidiaries. SunTrust Robinson Humphrey is a service mark of SunTrust Banks, Inc. SunTrust Bank, Member FDIC SunTrust Banks, Inc. SunTrust and Live Solid. Bank Solid. are federally registered service marks of SunTrust Banks, Inc.