Corporate treasurer

Corporate treasurers determine and oversee the financial strategic policies of a company or organisation. They use cash management techniques like account organisation, cash flow monitoring, liquidity planning and control, risk management including currency and commodity risks and maintain close connection with banks and rating agencies.

The following job titles also refer to corporate treasurer:

corporate treasury controller
corporate financial officer and treasurer
foreign currency treasurer
corporate treasury officer
group treasurer
company treasurer
treasury analyst
corporate treasury manager

Bachelor’s degree is generally required to work as corporate treasurer. However, this requirement may differ in some countries.

ISCO skill level is defined as a function of the complexity and range of tasks and duties to be performed in an occupation. It is measured on a scale from 1 to 4, with 1 the lowest level and 4 the highest, by considering:

• the nature of the work performed in an occupation in relation to the characteristic tasks and duties
• the level of formal education required for competent performance of the tasks and duties involved and
• the amount of informal on-the-job training and/or previous experience in a related occupation required for competent performance of these tasks and duties.

Corporate treasurer is a Skill level 4 occupation.

These occupations, although different, require a lot of knowledge and skills similar to corporate treasurer.

investment manager
financial controller
accounting analyst
cost analyst
investment analyst

These occupations require some skills and knowledge of corporate treasurer. They also require other skills and knowledge, but at a higher ISCO skill level, meaning these occupations are accessible from a position of corporate treasurer with a significant experience and/or extensive training.

This knowledge should be acquired through learning to fulfill the role of corporate treasurer.

Financial department processes: The different processes, duties, jargon, role in an organisation, and other specificities of the financial department within an organisation. Understanding of financial statements, investments, disclosing policies, etc.
Financial statements: The set of financial records disclosing the financial position of a company at the end of a set period or of the accounting year. The financial statements consisting of five parts which are the statement of financial position, the statement of comprehensive income, the statement of changes in equity (SOCE), the statement of cash flows and notes.
Financial forecasting: The tool used in performing fiscal financial management to identify revenue trends and estimated financial conditions.
Liquidity management: The theory and practices around the management of liquidity in a company with the aim of facilitating meeting obligations with thirds parties without compromising the smooth functioning of the company nor incurring in substantial losses.
Financial analysis: The process of assessing the financial possibilities, means, and status of an organisation or individual by analysing financial statements and reports in order to make well informed business or financial decisions.
Investment analysis: The methods and tools for analysis of an investment compared to its potential return. Identification and calculation of profitability ratio and financial indicators in relation to associated risks to guide decision on investment.

These skills are necessary for the role of corporate treasurer.

Manage budgets: Plan, monitor and report on the budget.
Analyse market financial trends: Monitor and forecast the tendencies of a financial market to move in a particular direction over time.
Review investment portfolios: Meet with clients to review or update an investment portfolio and provide financial advice on investments.
Create a financial plan: Develop a financial plan according to financial and client regulations, including an investor profile, financial advice, and negotiation and transaction plans.
Interpret financial statements: Read, understand, and interpret the key lines and indicators in financial statements. Extract the most important information from financial statements depending on the needs and integrate this information in the development of the department’s plans.
Evaluate budgets: Read budget plans, analyse the expenditures and incomes planned during certain period, and provide judgement on their abidance to the general plans of the company or organism.
Analyse financial performance of a company: Based on accounts, records, financial statements and external information of the market, analyse the performance of the company in financial matters in order to identify improvement actions that could increase profit.
Plan medium to long term objectives: Schedule long term objectives and immediate to short term objectives through effective medium-term planning and reconciliation processes.
Analyse financial risk: Identify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.

This knowledge is sometimes, but not always, required for the role of corporate treasurer. However, mastering this knowledge allows you to have more opportunities for career development.

Risk transfer: The financial techniques aimed at avoiding damaging financially a business and instead, protect it in its operations. It is the operation of transferring liabilities and claims to third parties that have the financial muscle and specialise in bundling and managing risks in scale.
Banking activities: The broad and continuously growing banking activities and financial products managed by banks ranging from personal banking, corporate banking, investment banking, private banking, up to insurance, foreign exchange trading, commodity trading, trading in equities, futures and options trading.
Securities: The financial instruments traded in financial markets representing both the right of property over the owner and at the same time, the obligation of payment over the issuer. The aim of securities which is raising capital and hedging risk in financial markets.
Property law: The law and legislation that regulates all the different ways to handle property, such as the types of property, how to handle property disputes and property contract rules.
Stock market: The market in which shares of publicly held companies are issued and traded.
Tax legislation: Tax legislation applicable to a specific area of specialisation, such as import tax, government tax, etc.
Public offering: The elements comprised in public offerings of companies in the stock market such as determining the initial public offering (IPO), the type of security, and the timing to launch it in the market.
Insurance market: The trends and major driving factors in the insurance market, insurance methodologies and practices, and the identification of the major stakeholders in the insurance sector.

These skills and competences are sometimes, but not always, required for the role of corporate treasurer. However, mastering these skills and competences allows you to have more opportunities for career development.

Advise on credit rating: Share your expertise in the evaluation process which assesses the debtor’s ability, be it a government institution or a business, to pay back its debt.
Advise on tax planning: Advise on appropriate strategies to include taxes in the overall financial plan in order to reduce the tax load. Advise on questions related to tax legislation and provide advise on the possible implications that decisions in financial matters can cause in a tax declaration.. Advise on questions concerning things such as the creation of a company, investments, recruitments, or company successions.
Manage securities: Administer the securities owned by the company or organisation, namely debt securities, equity securities and derivatives aiming to get the highest benefit from them.
Perform currency reserve management: Administer the bank’s gold and currency holdings which are used as a way to settle international debts or to influence the national exchange rate.
Prepare financial statements: Collect, entry, and prepare the set of financial records disclosing the financial position of a company at the end of a certain period or accounting year. The financial statements consisting of five parts which are the statement of financial position, the statement of comprehensive income, the statement of changes in equity (SOCE), the statement of cash flows and notes.
Manage corporate bank accounts: Have an overview of the bank accounts of the company, their different purposes, and manage them accordingly while keeping an eye on their balance, interest rates, and charges.
Manage currency exchange risk mitigation techniques: Evaluate foreign currency and assess conversion risks; implement risk mitigation strategies and techniques to protect against fluctuation.
Advise on financial matters: Consult, advise, and propose solutions with regards to financial management such as acquiring new assets, incurring in investments, and tax efficiency methods.
Convert currency: Convert valuta from one currency to another at a financial institution such as a bank at the right exchange rate.
Develop revenue generation strategies: Elaborate methodologies through which a company markets and sells a product or service to generate income.
Exert expenditure control: Analyse expenditure accounts against the income and usages of different company units, companies, or organisms at large. Recommend usage of financial resources in efficient manners.
Disseminate information on tax legislation: Provide advise on the possible implications for companies or individuals on decisions regarding tax declaration based on tax legislation. Advise on the favourable tax strategies that could be followed depending on the needs of the client.
Create risk reports: Gather all the information, analyse the variables and create reports where the detected risks of the company or projects are analysed and possible solutions are suggested as counter actions to the risks.
Trade securities: Buy or sell tradable financial products such as equity and debt securities on your own account or on behalf of a private customer, corporate customer or credit institution.
Idenfify if a company is a going concern: Analyse financial statements, financial information and the outlook of the company in order to determine the going concern of the company.
Handle cash flow: Handle the movement of money into or out of a business, project, or financial product.

1211 – Finance managers

 

 

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References

1. Corporate treasurer – ESCO