TREASURY

SKILLS AND
CAPABILITIES DEFINED
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[Link]/competencyframework
 CAPABILITIES
The competency framework defines the treasury skills and
TREASURY OPERATIONS
TREASURY INFRASTRUCTURE
The treasury function should
capabilities needed by treasury professionals to operate CORPORATE FINANCIAL reflect the needs and culture of
successfully in today's challenging business climate. MANAGEMENT the organisation. This is achieved
through establishing a framework
FINANCIAL RISK MANAGEMENT CORPORATE FINANCE of policies and procedures to
CONTEXT OF TREASURY RISK FRAMEWORKS The treasurer needs a thorough
enable treasury to be resilient to
external shocks (including having
ORGANISATIONAL Every organisation needs a risk understanding of corporate finance appropriate disaster recovery plans)
AWARENESS management framework that not theory and needs to ensure it is and to function effectively.
COMMERCIAL ACUMEN
only establishes the policies and applied to evaluate sources and
As members of the leadership team, Treasurers need to actively engage uses of finance. This encompasses TECHNOLOGY
processes to be followed but also
treasurers need to demonstrate with current affairs and must have everything from capital structure Technology is a critical enabler for
articulates the risk appetite of the
commercial acumen. They need a detailed understanding of the (debt, equity and dividend all activities undertaken by treasury.
organisation. The treasurer needs to
to have the ability to evaluate a implications of external events on policy), through to major business The wide range of solutions available
understand this fully and will lead
range of tools to communicate and their organisation. transformations (e.g. mergers, are evolving rapidly and treasury
where financial risk management is
negotiate effectively, in support of FINANCIAL PRODUCTS acquisitions and divestments) and to needs to proactively identify
concerned.
the overall growth of the business, AND MARKETS individual financing decisions. solutions (e.g. cloud, distributed
and to identify opportunities for IDENTIFYING AND ASSESSING ledger technology, application
A thorough understanding of the FINANCIAL RISKS & LONG-TERM FUNDING
innovation within treasury. programming interfaces (APIs)) that
various financial markets and related OPPORTUNITIES The success of the organisation are aligned to the organisation’s
LEADERSHIP AND instruments is core to effective is dependent on access to funds.
Strong relationships, clear current and future requirements.
SELF-AWARENESS treasury management. Familiarity These may take a variety of
communication and straightforward CASH MANAGEMENT
with the intricacies of transacting forms (debt, equity, or hybrid).
Treasurers are leaders. They use processes will enable the treasurer
such products and the risks and Implementing the most appropriate Cash management is the process of
skills and competencies confidently to identify and assess the scale of
benefits they offer the business, mix of funding to achieve the managing the flow of cash around
and effectively to help deliver the financial risk within the business.
as well as the ability to explain organisation’s medium/long-term the organisation. The identification
organisation’s objectives. They This includes both core treasury
products to non-treasury members objectives whilst accommodating and implementation of appropriate
understand their core strengths, (e.g. liquidity, working capital, FX
of the organisation, are key. its risk appetite is critical for the cash management solutions
FINANCIAL MANAGEMENT as well as areas for development and interest rates, counterparty risk)
and hold others to account. They as well as other financial risks and treasurer. This activity is important (e.g. pooling, sweeping, netting),
Financial management is a
critical element of treasury’s role.
Cashflow forecasting, balance sheet
are able to get the best out of
others through active listening and
CORPORATE GOVERNANCE opportunities that may fall under
treasury’s remit (commodities,
for many organisations in achieving
their sustainability goals.
payment controls and bank account
management is fundamental to
constructive challenge. They apply Treasury’s activities need to be pensions, etc). INVESTMENTS the long-term success of the
funding, valuing and managing organisation.
best practices in relation to diversity, clearly defined, executed and
FX and interest rate risks, budget
monitored, and this includes the MANAGING FINANCIAL Treasury needs to be prepared
monitoring and timely identification equity and inclusion. RISK to handle cash surpluses. An LIQUIDITY MANAGEMENT
independent review provided by
of financial trends and variances are investment strategy based on Liquidity management focuses on
INFLUENCING SKILLS regular internal and external audits There is a range of techniques
all core aspects. security, liquidity and yield that the organisation’s short-term need
(e.g. the three lines of defence for managing financial risk, which
Treasurers develop mutually is consistent both with the needs to meet payments as they fall due.
DATA MANAGEMENT model). Policies and procedures includes avoiding, accepting
beneficial working relationships with of the business and with its risk This can be achieved through the
need to be documented, up-to-date or transferring it (e.g. using
Data management is increasingly internal and external stakeholders, appetite, should be in place. This development of accurate cashflow
and followed, and reporting must derivatives). Treasurers need
important for the treasurer. It gaining support for ideas and will include a methodology to forecasting solutions, the effective
be provided for all stakeholders to select the most appropriate
involves collecting, analysing, plans of action. They create monitor the creditworthiness and, management of working capital and
(both internal and external). These response to a particular risk,
and translating reliable data opportunities which deliver value to increasingly, the sustainability access to external sources of funds.
reports form part of the corporate dependent on the organisation’s risk
into information that can be the organisation and the treasury credentials of investment
team, through a diverse range of
governance framework. appetite. TRADE FINANCE
appropriately disseminated to assist counterparties.
with problem-solving and decision- influencing skills. ACCOUNTING, TAX AND FINANCIAL RISK As supply-chains become more
REGULATION REPORTING INTERCOMPANY FUNDING complex, they require a more
making across the organisation.
ETHICS AND CULTURE Intercompany funding is generally detailed understanding of risks and
Accounting rules, tax and other Stakeholders (both internal and
PROJECT MANAGEMENT Ethical behaviour should underpin an efficient source of funds for opportunities. Treasurers need to
legislation or regulation may affect external) need to understand how
Treasurers need to be able to all business activity. Treasury the financial markets accessed risk is being managed and whether an organisation. However, such understand the constantly evolving
manage projects of all types. professionals need to appreciate by the organisation, the activities the approach is effective. Treasurers arrangements may be complex and ecosystem of participants, tools
Projects requiring treasury input why ethics matter, to act ethically undertaken by treasury and how should apply the most appropriate the treasurer needs to take tax, legal and platforms (e.g. digitalisation,
may be as diverse as niche treasury- at all times and to lead by example. such activities are reported. Such financial risk evaluation and effective and regulatory aspects into account distributed ledger technology) in
specific solutions, or highly complex They contribute to high ethical requirements can change frequently, reporting methodology for the when setting up intercompany order to identify and implement the
organisation-wide programmes. standards within a business. so keeping up-to-date is key. organisation. structures. optimal solution for the organisation.

BUSINESS SKILLS BEHAVIOURAL SKILLS TECHNICAL SKILLS