What is a treasury professional and what do they do?

Treasury focuses on the management of money and financial risks in a business. The role of a treasury professional is to optimise a company's liquidity and make sound financial investments to ensure that the business has the money it needs to pay its bills or undertake new ventures.

Professionals in this field contribute to financial risk mitigation strategies for a business. They monitor economic factors such as interest rate rises, changes in regulations and foreign exchange rates, assessing the organisation’s level of exposure and determining strategies to mitigate any potential financial risks to the business. Treasurers also use their expertise to provide risk-based insight to inform decision making around key strategic initiatives such as acquisitions and expansion into new territories.

Key responsibilities

Responsibilities will vary, but examples include:

  • Assisting with the development of financial strategy and policy.
  • Ensuring that a company's cash flow allows it to operate effectively.
  • Ensuring that sufficient funds are available to meet continuing operational and capital investment requirements.
  • Forecasting cash flow positions, related borrowing needs, and funds available for investment.
  • Arranging for equity and debt financing, as required.
  • Advising senior management on the liquidity aspects of its short and long-term planning.
  • Performing risk management activities to safeguard financial security.
  • Using hedging to reduce financial risks related to the interest rates on the company's borrowings, as well as on its foreign exchange positions
  • Investing funds and pension funds.
  • Assessing the financial impact of new business ventures.
  • Developing solutions to new financial challenges by applying financial or treasury knowledge.
  • Establishing and maintaining strong relationships with bankers and investors.
  • Maintaining relationships with credit rating agencies.

Why are they important?

Treasury professionals play a strategic part in the management of a company’s money. It is their role to plan, organise and control the cash assets to ensure that the business has sufficient liquidity to meet its obligations and financial goals, as well as playing a key role in the management of financial risk.

Skills needed for this role

Treasury professionals need strong numeracy and analytical expertise, along with excellent interpersonal and communication skills. It is important that a treasury professional can win trust, work ethically and act with integrity and confidence.

Strategic Professional Options examinations linked to this role

Advanced Financial Management

Career opportunities presented by this role

Opportunities exist in large multi-national organisations, charities, government agencies or start-ups. Treasury offers a diverse and lucrative career that can progress to the most senior roles in business and finance, as well as opening up doors to international opportunities.

Competencies

High level competencies required include:

  • Advisory and consultancy

    A. Gathers and understands financial and non-financial information to develop complete knowledge of the client business and the environment in which it operates.

    B. Provides expert advice that will add value to the business and gain advantage.

    C. Identify and advise on business partnering to develop strategic relationships to create opportunities, improve performance and solve business problems.

    D. Prepare and present business plans and advise on the actions to implement these plans.

     

  • Corporate and business reporting

    A. Prepares financial statements, corporate financial and integrated reports for external stakeholders using appropriate technology.

    B. Leads effective decision making through analysing, evaluating and communicating performance and position of entities.

    C. Prepares financial statements for groups of entities using appropriate technologies.

    D. Monitors, critically evaluates, and advises on the relevant accounting standards, regulations, conceptual and financial reporting frameworks.

     

  • Financial management

    A. Links developments in global trade, markets, business practices and the economic environment to required improvements in the financial and risk management of an organisation.

    B. Advises on business asset valuations, capital projects and investments using appropriate analytical qualitative and quantitative techniques.

    C. Identifies, evaluates and advises on alternative sources of business finance and different ways of raising finance.

    D. Communicates and advises on the impact on financial decision making on current developments in regulation, governance and ethics.

    E. Assesses and advises on appropriate strategies to manage business and organisational performance regarding business and finance risk and effectively communicates the impact.

     

     

  • Governance, risk and control

    A. Evaluates organisational structures and governance to protect the long-term interests of stakeholders.

    B. Recommends appropriate strategies to ensure adherence to governance structures and application of best practice internal controls.

    C. Identifies and manages risk appropriately.

    D. Uses risk management for the best interests of an organisation and its stakeholders.

    E. Monitors and applies relevant legislation, policies and procedures.