Turning Treasury from Reactive to Proactive – part 2 of 5

By Kyriba July 15, 2015

We asked 24 treasury experts, from banks, consultancies, analysts and leading brands worldwide, to give their guidance on what treasury teams can do to turn their treasury function into one that is proactive and creates value across multiple levels of the business.

The second of this series of posts focuses of how becoming a more proactive treasury means managing risk more effectively. The first piece of advice comes from Guy Simons, assistant treasurer at TRW Automotive (who will be speaking on our roundtable webinar on July 30 – full disclosure: TRW Automotive is a Kyriba client). Similar to Laurie Culley in the previous post, Guy empasizes the need to become a critical part of the day-to-day operations of the treasury. In fact – by staying too close to the daily action, it could be detrimental to the goal to become more proactive. He says, “In a proactive treasury, you are less busy because actions are not based on ad hoc analyses. In the reactive model, you may feel important because you’re pontificating about things that only you know, but in a proactive treasury, you spend more time educating and making yourself almost superfluous in many day-to-day operations.

This position is echoed by Todd Yoder, head of derivatives and hedging strategy and director of global corporate treasury at a major global construction company (who, like Guy is a Kyriba client and will be participating in our webinar). Tom emphasizes that “As a strategic treasurer, you must build a reputation within the company as a strategic thinker.” How does one become more strategic? Todd says that the first two elements that need to be put in place are building a world class team, and investing in a treasury management system. Not only does this reduce mistakes, but by freeing up team members’ time , it allows the team to think strategically and become more proactive.

To read more of these essays, as well as those of other leading treasury consultants, analysts and practitioners, download the mini-ebook, Taking Treasury from Reactive to Proactive: Managing Risk.

Turning Treasury from Reactive to ProactiveKyriba will also be hosting a webinar, From Reactive to Proactive: Real-World Solutions for Becoming a Strategic Treasury, on July 30th at 11am PT / 2pm ET, which discusses some of the issues addressed within this ebook. The webinar will feature speakers from both banking and corporate treasury, and will be moderated by Kyriba’s Bob Stark. It will include practical advice, followed by a lively and interactive panel debate on how treasury teams can become more proactive and strategic.

Stay tuned for the next blog, which will discuss how to outline treasury’s vision.

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