Corporate treasuries in Asia still too basic in their approaches: PwC

[SINGAPORE] Corporate treasuries in Asia are still using far too rudimentary techniques to manage their risks, even though those risks have grown significantly in this economic climate, says a study of 117 organisations across Asia by PwC.

For example, half of the survey respondents said they do not use hedge accounting - which works to reduce the volatility, created by having to continuously mark-to-market a financial instrument's value, by treating the instrument and the hedge as one accounting entry.

Also, while 66 per cent of respondents were exposed to commodity risk, more than a third said they are not managing the risk at all.

And, while a majority were in organisations that operated across...

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