The value of cloud-based solutions in an uncertain and volatile market has never been clearer. Last year, businesses were affected by the pandemic in a variety of different ways. Industries like travel and hospitality were hit hard by changes to customer behavior – but other sectors saw demand remain steady or even increase.

In the coming months, economies will need to look at funding the cost of pandemic, meaning that organizations across the entire economy will have to contribute – thereby likely creating further cost pressures. In this environment, it’s essential that treasurers prepare their organizations for the challenges that lie ahead by keeping costs down and managing risks more effectively.

To achieve these goals, cloud technology so much to offer. Where cost is concerned, a cloud-based treasury system offers a lower total cost of ownership (TCO) than an on-premise solution. Upgrades are managed or delivered automatically for no additional fee, and without placing a burden on in-house IT staff.

Beyond cost savings, a cloud-based system can also help treasurers maximize their return on investment (ROI) – for example, by offering faster access to regulatory and functional enhancements.

Treasurers will also be looking for ways to optimize the effectiveness of their risk mitigation processes. In 2020, many companies were caught unawares by the high levels of volatility in the market, which meant the cost of market risk reduction tasks like hedging was significantly higher. This year, treasurers will be taking steps to better prepare for future uncertainty. They will need to ensure they can answer urgent questions from the CFO about the impact of market volatility on the company’s assets and hedging strategy. An effective cloud-based system can help by providing a clear view of the company’s liquidity and risk exposures, as well as the tools needed to mitigate those risks effectively.

Finally, treasurers are looking at the issue of key person risk as they take steps to ensure the smooth running of their operations. If the treasury team is dependent on a small number of individuals to manage mission-critical treasury applications, disruption can arise if a single employee goes on sick leave.

Cloud-based systems can mitigate key person risk in a number of ways. For one thing, streamlining manual processes through technology makes it easier for other users to step in when needed. In addition, some vendors are able to run operational processes and certain areas of the application on the company’s behalf – meaning that if a member of the treasury team is incapacitated, essential activities can continue uninterrupted.

Cloud-based solutions have much to offer in an uncertain economic environment, from helping treasury teams keep costs under control to providing greater visibility over risk exposures or even outsourcing business or application processes. But even firms that are already on the cloud may not be getting the full value from it. Read our e-book to learn more about how you can maximize your ROI from the cloud.