Making Sense of Treasury

19 January 2025: A Word on Cash Forecasting

My career in treasury started in 2012. There has been a consistent item categorised as a top priority in the majority of treasury surveys: cash forecasting. Priority #2 in the latest EACT survey - losing the top spot it held in 2023 to LT funding - I have always found that the keys to robust cash forecasting are not fancy models nor technology, and certainly not emailing subsidiaries demanding their forecast! The keys are people/stakeholder management, a robust and clear strategy, and some common sense. I suggest the following be considered alongside the fancy tech:

• Decide how much detail and accuracy you actually need. Do not be tempted to forecast every pound/dollar/euro; make it as easy and simple as possible.
• Some may disagree, but a cash forecast is often only genuinely needed when an economic disaster occurs (e.g. COVID, GFC). Since there are very few data points for such events, the accuracy of your forecast will likely be low, making it unreliable during such a crisis. Hence, your forecast may be unreliable at the time when you most need it! 
• People management: bringing people with you, asking for their advice, and influencing subsidiaries to do additional work by extolling the main benefits. Make it interesting. Consider reducing any current processes the subs are doing on treasury's behalf.
• The strategy needs to be dialled in, optimised, and robust so stakeholders will have faith in it. Clearly explain the reasons, the process, and the expected outcomes in person to the stakeholders, and encourage collaboration.

19 January 2025

(Updated: more risks added). I am proposing a new risk management framework with examples: the 'KIMARE' risk management framework. Please click on this webpage to access it: 5 treasury foundations. 

Having applied several risk management frameworks in industry and practice, this proposed new framework incorporates what I consider to be crucial missing elements of other frameworks and is in the most realistic order of application.

16 January 2025

(Updated) If you want to build an elite treasury team, see presentation on this page: Leadership, People and PM

10 January 2025

With the timetable to migrate all systems to ISO 20022 approaching fast, I have written an ISO 20022 implementation plan with practical tips at this webpage: 5 treasury foundations

5 January 2025

Happy New Year! This site isn't just about treasury technical knowledge; it is so much more than that. I have written a summary of an important book for high achievers - most treasurers, of course! - called The Gap and The Gain by Dan Sullivan. See here: Leadership, People and PM

4 January 2025

A presentation outlining the 10 steps to creating a treasury function is here: 5 treasury foundations

19 December 2024 - Interest Rates: the FED and BoE

On 18 December, the FED reduced rates by a quarter point, as expected, however stocks fell on the news. Further, the BOE are holding rates steady and may cut its forecasted four quarter point drops next year to two or three.

To read the full blog, click here: 5 treasury foundations . It offers advice on how treasurers could respond in this precarious economic environment.

15 December 2024

A presentation on project management with guidance, including tips and tricks, for ensuring a successful project. Click this webpage to access it, and it is the second presentation: Leadership, People and PM

9 December 2024

A presentation on liquidity and working capital optimisation has been created and is on this webpage: 5 treasury foundations