“The way of making predictions has changed. Corporate finance leaders are struggling to react to market volatility, rising commodity prices and a strong dollar when planning budgets for 2023. More than ever, CFOs need to explain how they will achieve cash flow targets long-term, ”says Bob Stark, Kyriba’s Global Head of Market Strategy
And on the other hand, with the stock exchanges overwhelmed by unprecedented volatility and the US dollar at its highest in 20 years against the euro, the impacts on the global market continue to evolve, it is increasingly difficult for companies to have sufficient data to protect assets. corporate financials. To the point that cash forecasting solutions provide critical data and – in some cases – even critical analyzes.
In this scenario, Kyriba, one of the leading global companies in cloud-based IT and financial solutions, has announced the launch of Liquidity Planning: a platform for FP&A, working capital and treasury data in multiple scenarios, capable of supporting forecasting in parallel multiple scenarios, long-term modeling and incorporate modern analytical tools to assist CFOs in managing rising cost of capital, market volatility and liquidity risk.
“Our platform – continues Stark – allows CFOs and their teams to model different forecasting scenarios in parallel to manage different risk scenarios simultaneously, leveraging in-depth data analysis to extract real-time insights for liquidity management. exposure to counterparties and KPIs relating to working capital. The cost of ineffective forecasting has risen, reaching unprecedented levels. CFOs lose millions of euros because they do not have the tools to manage company liquidity ».
Also because according to a recent report by IDC, only 20% of financial leaders are confident in forecasts beyond a month and this percentage drops further for forecasts beyond three months, reaching 5%. “We reimagined – explains the company – what the treasurers were unable to do. Before Liquidity Planning: Treasurers did not have analysis and, therefore, did not have the possibility to make long-term predictions (3 months) and therefore were not able to analyze multiple scenarios at the same time. Today, all this is possible ».