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Money makes the world go round and treasury transactions must go on! The treasury team in Barden have been busy so far in 2022 and predict busy pace to continue for the rest of the year. Here in the latest blog from the Barden treasury team, Kate Flanagan, Partner with Barden and expert in tax and treasury careers and recruitment, outlines the key issues facing corporate treasury teams at the moment and shares an overview of the requirements we’re seeing from our clients looking to recruit treasury professionals right now.
Managing Financial Risks
- Despite Covid slowing the world down, treasury functions were busier than ever to deal with many issues, namely around managing financial risks.
- Market conditions have been turbulent and unpredictable over the last couple of years, along with interest rates, rising inflation costs and changing labour markets.
- Managing currency risk is as always high on the treasury’s to do list. Greater FX volatility threatens to make risk management a key challenge for treasurers throughout 2022. Ensuring their FX programme is doing everything they need it to do and being as efficiently run as possible.
- Managing commodity risk will become more important as inflation continues to increase. Hedging has become a higher priority than ever before.
- These and other dynamics will continue to impact both strategic and operational decisions treasury teams make to manage financial risks.
Cashflow Forecasting
- Cashflow forecasting will be one of the, if not THE, top priorities for treasurers this year because it’s an area that can always be improved.
- A treasurer by his/her nature is always forward thinking so it has to be on their radar.
- If treasurers can correctly predict their cash flow positions, they can make other anticipations based on this.
Adopting to Technology Advancements & Automation
- Across treasury, teams continue to focus on leveraging the most they can from their existing treasury technology tools, including treasury management systems, risk systems, trading platforms, ERPs, business intelligence tools, and other solutions.
- Treasurers should look to automate where possible so that they have more time for the real work involved in treasury today – that is looking forward and making sure there is enough cash in the right place, and that there is a low level of risk in the company.
Regulation and Compliance
- KYC and AML requirements are expected to be back on the agenda for treasurers this year. Banks are facing more scrutiny by their central banks when checking for fraudulent payments and money laundering, and this will impact treasurers too.
- Other newer regulations will continue to have an impact such as cryptocurrencies and environmental, social and governance (ESG).
A challenging and exciting time to be in treasury!
If you would like any advice on your next career move within treasury, or are looking to hire for your team, get in touch with Kate Flanagan (kate.flanagan@barden.ie) or Aoibhín Byrne (aoibhín.byrne@barden.ie) an email they’ll take it from there.