TREASURY

SKILLS AND
CAPABILITIES DEFINED

See how you measure up against the

professional treasury standards at:

treasurers.org/competencyframework
 TREASURY OPERATIONS
TREASURY OPERATIONS
INFRASTRUCTURE
The competency framework defines The treasury function must be set up
to support the business to reflect the
the treasury skills and capabilities needs and culture of the organisation.
This includes establishing a framework
needed by treasury professionals of policies and procedures which
enable the treasury to be resilient to
to operate successfully in today’s external shocks (disaster recovery) and

challenging business climate.

RISK MANAGEMENT to function effectively; and building
strong relationships with the business
and financial institutions.

treasurers.org/competencyframework RISK FRAMEWORKS CORPORATE FINANCIAL FINANCIAL PRODUCTS

AND MARKETS
In order to explain its approach to
risk management, every organisation MANAGEMENT A thorough understanding of the various
needs a risk management framework
financial markets and related instruments
that not only establishes the policies
is core to treasury. Familiarity with the
and processes to be followed but CORPORATE FINANCE intricacies of transacting such products
also articulates the risk appetite of
and the risks and benefits they offer the
the organisation. The process of risk Corporate finance theory (risk/reward)
business, as well as the ability to explain
management must be structured to is applied in practice to evaluate
products to non-treasury members of
enable visibility and support of sources and uses of finance. This
the organisation are key.
COMMERCIAL DRIVE decision making. encompasses everything from capital
structure (debt, equity and dividend TECHNOLOGY
AND ORGANISATION IDENTIFY AND ASSESS RISKS policy), through major business
Appreciate own position in and transformations (e.g. mergers and The use of technology (increased
In order to manage risk, first it
contribution to wider organisation acquisitions) to individual financing automation) can improve the accuracy
must be identified, evaluated and
and understand those of other decisions (e.g. whether to buy a and security of treasury transactions, by
prioritised. Strong relationships,
business functions in delivering the particular machine). delivering solutions to manage payments,
clear communication and a straight
organisation’s strategic objectives. disaster recovery etc. The wide range of
forward process will enable treasury LONG TERM FUNDING
Optimise opportunities within own area systems products available need to be
to work with the business in identifying
FINANCIAL MANAGEMENT of expertise to deliver efficiencies and financial risk - both core treasury The success of the organisation
thoroughly evaluated to ensure those
drive costs down through effective selected are aligned to the treasury’s
Financial management is a critical (e.g. liquidity, working capital, foreign is dependent on access to funds.
negotiation with suppliers. delegated powers, policies, procedures
element of treasury’s role, whether exchange, counterparty risk) and other Identification of the most appropriate
and audit requirements.
managing transaction costs, financial risks that may fall under sources of funding to achieve the
SELF MANAGEMENT treasury’s remit (commodities, organisation’s medium/long term
protecting against exchange rate CASH MANAGEMENT
exposure or contributing to cash flow AND ACCOUNTABILITY pensions etc.). objectives and putting funding
forecasting. Budget monitoring and solutions (including documentation) Efficient cash management is
Use skills and competencies MANAGE RISKS in place will ensure that funding is crucial to the long term success
provision of early warning of adverse confidently and effectively to help
trends and variances are core available whenever required. of the organisation. This involves
deliver the organisation’s objectives. There are a variety of approaches to
aspects. identification and implementation
managing risk: Avoid, Accept, Transfer.
KNOWLEDGE
Understand your core strengths, as
well as areas for development. Accept CONTEXT OF TREASURY ETHICS AND CORPORATE Management techniques range from
INVESTMENT of cash management solutions
for day to day funding of operating
AND INFORMATION
responsibility for own actions, and
hold others accountable for theirs. GOVERNANCE doing nothing, through changing ways
of working, to undertaking external
Treasury needs to be prepared to
handle cash surpluses as well as
units and mechanisms for remitting
cash across a group.
MANAGEMENT transactions that change the nature borrowing requirements. A financial
INFLUENCING SKILLS THE BUSINESS CONTEXT of the risk (e.g. derivatives). Select investment strategy (based on security, LIQUIDITY MANAGEMENT
Collect, analyse and translate data ETHICS and implement the most appropriate liquidity and yield) that is consistent
into information that can be Develop mutually beneficial working Treasury should hold a pivotal response to a particular risk for both with the needs of the business Liquidity management focuses on the
appropriately disseminated to assist relationships with internal and external position within the organisation Ethical behaviour is a mind-set and the organisation, dependent on its and with its risk appetite, should be organisation’s short term need to meet
with problem solving and decision stakeholders, gaining support for to add most value and must have underpins all business activity. Treasury risk appetite. in place as well as methodology to payments as they fall due. This can be
making across the organisation. ideas and plans of action. Create a detailed understanding of both the professionals need to appreciate why monitor the creditworthiness of achieved through the development of
Ensure such data is retained and win-win situations which deliver value business and the implications of ethics matter, to act ethically at all RISK REPORTING investment counterparties. accurate cash flow forecasting solutions,
stored in such a way as to provide to the organisation and the broader external events on their organisation. times and to lead by example. and the management of working
treasury community. Stakeholders (both internal and INTERCOMPANY FUNDING
easy access but always in accordance capital and external sources of
with the Data Protection Act 1998 ACCOUNTING, TAX AND COMPLIANCE AND AUDIT external) need to understand how
funds to ensure resilience.
and any associated legislation. WORKING EFFECTIVELY REGULATION risk is being managed and whether Intercompany funding of subsidiary
WITH OTHERS Treasury’s activities need to be clearly the approach is effective. Ensure that operations is generally an efficient TRADE FINANCE
PLANNING AND PROJECTS Accounting rules, tax and other defined, executed and monitored and the most appropriate risk evaluation source of funds for an organisation.
Work collaboratively as part of a legislation or regulation may affect this includes the independent review and reporting methodology for the It may not be straight forward to Trade finance relates to operational
Develop and implement departmental, team to support the strategic the financial markets accessed by the provided by regular audits. Policies organisation is selected and implement or manage, as tax, legal cash flows and specifically to
project or team objectives in order to direction of the organisation. Achieve organisation, the activities undertaken and procedures need to be implemented; included in this will be and regulatory aspects must all be supporting customer and supplier
manage scarce resources and deliver team and organisation objectives by by treasury and how such activities integrated into the organisation’s risk mitigations with assigned taken into account especially when transactions. Trade finance solutions
results that are in line with corporate getting the best out of others, are reported. Regulatory requirements management approach. Reporting responsibilities and a feedback loop setting up intercompany structures manage the risks which arise with
objectives. Problem solving is a key through active listening, as well as can change frequently so keeping up must be provided for all stakeholders to report on residual risks, adapt such as netting systems, in-house cross border trading. It also covers
skill. constructive challenge. to date is key. (both internal and external). policy and refine procedures. banks etc. supply chain finance solutions.

BUSINESS SKILLS BEHAVIOURAL SKILLS TECHNICAL SKILLS

CHARACTER: Traits • Values • Virtues | COMMITMENT: Aspiration • Engagement • Dedication