The new corporate treasurer: how the role has changed

While the role of CFO has evolved since the Global Financial Crisis to that of change agent, strategic business partner, and executive partner to the CEO, the role of treasurer has also undergone profound changes.Major changes to treasury management and cash flow management have taken place, and continue to evolve with the growing demands on the treasury and technological innovation taking place for the treasury, including the use of cloud-based and comprehensive management systems.As risk in the corporate sector has heightened sharply since the financial meltdown, as companies are forced to look beyond banks for financing, as the capital and FX markets are inherently more volatile and as liquidity becomes a greater challenge, corporate treasuries have naturally been given more responsibility.The corporate treasurer has seen their role take on new dimensions beyond merely administrative roles to include new strategic demands. Not only have their traditional roles been elevated yet more in importance, but they have also had to adapt in order to include the need to communicate effectively with stakeholders from within and outside the organisation, take on a new strategic role, often involved in top-level meetings, and embrace the need for new technologies in their role.In this paper, we look at the traditional roles of the treasurer from before the 2007- 09 crisis and how the role has changed since, and finishing up with what can be expected for the role in future.The new corporate treasurerToday’s treasurer is expected to be a key strategist, often sitting in on executive level meetings and advising the CFO directly. An evolving and more complex financial sector means the knowhow on the part of treasurer must be greater than it was. Moreover, increased competition and new challenges from globalisation and e-commerce mean more, and often, new, financial demands, and thus the treasurer has a key role in this side of business strategy.Technological advances pertinent to the role of treasurer seemingly come with more frequency every year, including treasury management systems, payment tracking systems and FX management systems.The Global Financial Crisis demonstrated the need for vastly improved treasury management systems, where now treasurers must ensure they are adequately equipped with the right technology to assist in analysing their cash position, current and projected risk exposure and to provide timely, accurate and up-to-date information and data.They must also manage stakeholder relations, including credit rating agencies, banks, the board, investors and other departments within the organisation. The role now demands a diverse skillset that was not so necessary before. The treasurer has evolved, in effect, from a purely administrative function to incorporating a strategic dimension in all aspects of their role.Read the full paper now by downloading your free copy: