HSBC Survey Shows 85% of Corporates Identify Working Capital Management a Higher Priority in Past Six Months
The global economic environment and restricted access to liquidity have highlighted the importance of an efficient cash management structure, according to a recent survey by HSBC Global Payments and Cash Management.
The survey’s findings, released in conjunction with the launch of HSBC’s Guide to Cash, Supply Chain and Treasury Management in Asia Pacific 2009, asked 300 corporates based in Asia-Pacific to evaluate their key areas of focus for 2009, of which working capital management was a top priority.
While traditional corporate performance levels have focused on factors such as the efficiency of manufacturing and operations and the effectiveness of sales and marketing, working capital management can dictate business survival and growth.
Other findings from the survey reveal that while corporates are expressing a greater desire for increasing efficiency, respondents were almost equally divided as to whether they would be taking advantage of any new technology solutions towards working capital management in 2009.
In addition, 68% of respondents said current conditions were elevating the role of the treasury function in their company, with 62% adding that this was facilitating more effective engagement with commercial management.
In terms of key risks facing organisations today, 43% of customers surveyed indicated that the risk of payment default was a top priority, followed by volatility in exchange rates (35%), and internal fraud (3%).
The working capital survey was conducted for HSBC Global Payments and Cash Management Asia Pacific via online polling.