Trésorier/Treasurer magazine - N°92 - Jan/Fev/Mar 2016 - (Page 5)

EDITORIAL - JAN N°92 - The slightest delay or the tiniest hesitation could cost you very dear. The shortest possible reaction time is the order of the day. The new regulations impose so many restrictions that the danger is that we can never achieve full compliance, at the risk of heavy penalties. Trying to achieve too much is self-defeating, particularly when it comes to laying down regulations. The new tax system that BEPS will impose, with its principles of substance and transparency, will utterly transform the economic landscape and transfer pricing. There is no doubt that, when it comes to choosing the best place for locating decision-making centres, companies will be forced to adapt to this new paradigm and to the biggest tax reform of the century. The place in which the treasury management centre is located will no longer be the outcome of tax considerations alone. A whole set of parameters will be taken into account, including the country's stability, how well its legal system works, and its overall infrastructure. Counterparty risk, which was often overlooked in the past, is now very much real, and even a priority. Banks are in a process of transformation, and because of this change the relationship with banks will have to be completely revisited and rethought. Business models are changing and the digital revolution is bringing new types of risk with it. There is an upsurge in cyber risk and fraud and several recent cases have focused the attention of CROs. The slightest error, fraud or misappropriation is now quickly brought to light in an online world that is all too interconnected. And following on from these failings, reputational risk becomes a sort of "meta-risk" or a sort of overspill for the occurrence of all the other new risks I have mentioned. Reputational risk can, more than ever, kill a company and have drastic, harsh and immediate consequences. The world is changing very quickly, and with it (new) risks are moving up to the top of the rankings. The priorities of risk managers are changing to reflect this new environment. Risk management is a road full of pitfalls and startling surprises to which you have to adapt continuously. LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE Over the last few years we have seen new risks emerge. Chief Risk Officers need to confront risks that, although perhaps not new, are of greater importance than they were in the past. A passing phenomenon, a sign of the times, a paradigm shift, or a consequence of the financial crisis or new rules? Perhaps all these reasons could be behind these emerging risks that we have to tackle with the greatest care. Audit Committees, Boards of Directors and Shareholders' General Meetings have a perception of risk that may be different from that of operational personnel and risk managers. For instance, the various surveys carried out on CEOs show that they put the risk of fraud, cyber-risk and IT risk, reputational risk and compliance risk at the top of the list. Is this perception actually borne out by the facts? Are these risks well enough understood and completely under control? These are the questions we need to ask to allay the fears of C-level top management. The ranking order of risks on the risk register has changed over the last few years as a result of a number of factors. These include economic events, the global financial crisis, regulations of all types that are massive in every way, calls for greater tax transparency and well-publicised leaks, together with the upsurge in attempted fraud. These emerging risks focus people's attention and some sensational recent cases and staggering scandals have changed the priorities for risk managers. Today, the somewhat precarious economic and political situation, with blacklists, banned products and embargoes raises serious problems. You can no longer trade whatever you like with whoever you like. Furthermore, we are seeing extreme volatility on the markets, even on a daily basis, with very high frequency automated trading. The fraught economic situation may push people to the limits of what is acceptable or tolerable. / FEB / MAR 2016 We need to face up to different challenges because new risks have emerged François Masquelier, Chairman of ATEL 5

Table of Contents for the Digital Edition of Trésorier/Treasurer magazine - N°92 - Jan/Fev/Mar 2016

Cover
Table of contents
EDITORIAL
FINANCIAL HIGHLIGHTS Luxembourg Tax News
INTERVIEW Anni Mykkanen, Policy Advisor EACT
FOCUS
Trésorier d'entreprise : homme- orchestre ou nouveau Business Partner?
IFRS 9: Time to prepare
Uberization' of the economy
What if the new regulations were a new source of risk?
FORUM
Risk and compliance
Is it really your CEO asking for that offshore transfer?
Navigation par gros temps : budgétez vos risques
Commodities hedging
Commodity risk management
Identity and access management
Enabling treasury transformation
CORPORATE FINANCE
Treasury survey: the dynamics of change in treasury
The perfect solution for portfolio management
Meeting market liquidity needs
Automatiser la gestion des comptes bancaires
The age of business simplification is upon us
15 MINUTES WITH Vallstein
THE FINANCIAL RISK OBSERVATORY
NEWS
LIFE BEYOND NUMBERS

Trésorier/Treasurer magazine - N°92 - Jan/Fev/Mar 2016