HSBC Corporate Risk Management Survey 2024
- Adam Edwards
- Feb 13
- 2 min read
The HSBC Corporate Risk Management Survey 2024 (link here) highlights the evolving role of treasury teams in navigating an increasingly complex risk landscape. With 529 senior treasury professionals surveyed, the report identifies key challenges, trends, and opportunities in financial risk management.
Key risks include FX volatility (47%), inflation (58%), and supply chain disruptions (35%), exacerbated by geopolitical tensions. Many companies suffered avoidable losses (93%) due to poor forecasting. Rising interest rates have led to shifts in debt strategies, with 44% of firms increasing fixed-rate debt exposure.
Treasury functions are becoming strategic advisors, with 68% of finance leaders acknowledging their role in decision-making, up from 41% in 2021. However, communication gaps persist, as only 4% rate treasury-C-suite communication as highly effective.
AI and technology are reshaping treasury operations, with 61% expecting AI to enhance profitability. Treasury teams are focusing on AI-driven forecasting, automation, and fraud detection. However, 62% cite a lack of skilled talent as a barrier to adoption.
ESG concerns are rising, with 99% of leaders expressing at least some concern about supply chain visibility. 27% of firms plan to terminate contracts over ESG issues in the next three years.
Despite challenges, 75% of finance leaders are optimistic about revenue growth, driven by technology adoption and increased customer demand.
The survey underscores the importance of flexible risk strategies, stronger communication, working capital optimisation, and technology adoption to future-proof treasury operations in an unpredictable economic climate.
15 Key Takeaways
FX risk (47%) is the most challenging area for treasury teams, followed by supply chain (35%) and climate risk (34%).
93% of companies suffered losses from inaccurate cash flow forecasting, leading to liquidity shortfalls and overborrowing.
Inflation remains a concern (58%), pushing companies to reassess debt strategies, with 44% increasing fixed-rate debt.
Only 4% rate treasury-C-suite communication as highly effective, though 44% say it has improved.
AI adoption is accelerating, with 61% expecting it to boost profitability and 82% using it for data analysis.
62% cite a lack of AI talent as a key challenge, though experts argue existing AI models are already widely usable.
68% of leaders see treasury as key to strategic decisions, up from 41% in 2021.
99% of firms are concerned about ESG visibility in their supply chains; 56% worry about ESG reporting compliance.
32% have integrated ESG policies into supply chains, but 27% anticipate cutting non-compliant suppliers.
Supply chain complexity remains an issue, with many firms lacking visibility beyond tier-one suppliers.
AI and automation investments focus on cash flow forecasting (38%), risk management, and reporting.
Companies shifting debt strategies, balancing between fixed and floating rates to manage interest rate volatility.
Working capital management is a priority, with 43% aiming to optimise payables, receivables, and inventory.
Geopolitical tensions remain a risk, but 75% of leaders remain optimistic about revenue growth.
Nearshoring is increasing, with 45% planning to work with local suppliers to reduce supply chain risks.