Ian Hill
Degree Studied: BA in Modern History
Current job title: Corporate Treasurer, BT.
Introduction to the treasury profession.
I started my career at ICI, gaining a CIMA accountancy qualification. During this time, the placement that I most enjoyed was in the treasury function, where I remained for a further year's secondment after my training ended.
At the end of the 12 month secondment to treasury, I was faced with the choice of carrying on in this discipline, or returning to an operational finance role. I decided to stay, and ended up staying for a further four years, before moving to a treasury role in another company. Treasury is different to operational finance: both areas are involved primarily with the numbers, but treasury has a greater focus on risk and risk management.
Responsibilities
Essentially, a treasurer is responsible for ensuring that the company has enough money, or access to enough funds, to enable it to pay its liabilities as they fall due, and to manage its cash and financial assets securely and cost effectively. Treasurers can therefore become involved in a wide range of financial transactions: at the base level, treasury staff check daily bank balances and invest cash or borrow it in the most effective manner for the company. Treasurers may also be involved in share issues, and will raise money on the debt and capital markets to support the company's business activities. We also have a significant role to play in developing and implementing a company's financial risk management policies.
For example, if the company is selling goods abroad, the treasurer manages the foreign exchange risk in conjunction with the business unit managers. He or she may also be concerned with how the company brings foreign currency profits back to the UK. It is becoming increasingly common for tax and insurance matters to come under the treasurer's umbrella.
I recently joined BT, which in addition to its substantial UK operations now has a number of overseas operations and subsidiaries. I am involved in managing the cashflow of the Group Treasury on a day to day basis: a group company with surplus funds can lend these funds to treasury, which in turn makes the funds available to a subsidiary with a funding requirement. In this way, Group Treasury is able to ensure that the group pays substantially less interest to banks, a practice which is common amongst large corporations.
If BT wishes to acquire a new company or business, Group Treasury obtains funding for the acquisition, and will subsequently assist in managing the integration of the financial operations of the acquired company into the BT group. Alternatively, if BT is divesting a subsidiary or business, Group Treasury will handle the safe receipt of the proceeds.
My role carries real responsibility - not only are the sums large, but the difference between doing something successfully and not has a real, immediate and measurable impact on the business.
Variety
What I like about my job is variety. In one day I might speak to a lawyer, a computer systems developer, to the head of a business unit and to a banker. The environment, both in the wider business and in the specific area in which I work, is very fast moving - what may seem like a big priority at the start of the week can have its importance completely altered by events during the week.
It is important to understand in addition that treasurers act as a mouthpiece for the company. We have to convince banks that the company we work for is a good credit (ie one to whom the bank would be willing to lend money) - without this the business cannot grow and survive. Depending on the size of the company and the sources of its funding, the treasurer may also give presentations to rating agencies or equity investors.
Treasurers work mainly, but certainly not exclusively, for corporates. Banks and accountancy practices employ them as do a wide range of non profit making organisations. As a treasurer, career development opportunities include virtually all aspects of the finance function up to Group Finance Director, especially for those who already possess a recognised accounting qualification, and other non financial roles are possible too, including consultancy, systems and even sales of financial products.
Experience of the ACT study programme
I sat the Association of Corporate Treasurers' exams in 1994 and 1995, gaining the MCT qualification. I found the syllabus engaging and the exams testing, particularly since I had a five year gap between finishing my accountancy exams straight after university and doing the treasurers papers! The qualification is not to be entered into lightly, but is well worth the effort and is highly respected in the financial world.
Why Treasury?
So why should I consider treasury, you are probably asking? Treasury is a young profession, which has really only taken off in the last 20 years as the financial markets have become both more liberalised and more complex. It is genuinely fast moving and ever changing, and it does engage you in a wide variety of business dealings with people from different disciplines. It does make a real difference to the fortunes and prospects of a company, and you can really measure your successes (or otherwise) quickly and in real terms.
