The Role of Key Performance Indicators for Corporate Treasury

A GTNews republication of a Journal of Corporate Treasury Management paper written by Kenneth Andersson, Peter Bergström and Magnus Lind of NFS.

This article discusses the background and consequences of treasury's developing role and the essentials of implementing relevant KPIs for corporate treasury.

Since its beginning in the 1980s, treasury has matured in a predictable way. From being independent from the rest of the organisation, it has now standardised the operations and processes, and with IT as the enabler it is becoming more integrated within the core operations. This requires the development of new sets of key performance indicators (KPIs) to measure and manage treasury from a group perspective. The choice of KPI and the manner in which it is implemented determines the success of the treasury.

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