Treasury Leaders Interview: The Key to Effective Liquidity Management
This article is written by our content partner, Nilus A Conversation with Kaseya’s Director of Treasury, Devin Scott As someone who’s spent his career in treasury operations, I’m always eager to learn how other leaders think about liquidity management. Recently, I had the chance to sit down with Devin Scott, Director of Treasury at Kaseya, to discuss how he approaches one of treasury’s most critical functions: managing day-to-day liquidity while minimizing risk. What I love about these conversations is how they reveal the evolving complexity of modern treasury operations. Let me share some key insights from our discussion that I think every treasury professional should consider. 1. The Foundation: Getting Your Daily Liquidity Right When I asked Devin about ensuring efficient daily liquidity management, his answer resonated deeply with my own experience: “A bottom-up view of transactions expected to hit your accounts is crucial,” he explained. “Where this isn’t possible, assumptions can be made based on actuals and other longer-term inputs, such as FP&A expectations and market trends.” This is something I’ve seen repeatedly in my work with high-growth companies – the best treasury teams don’t just look at the numbers, they build relationships across the organization. As Devin puts it: “Building relationships with teams whose inputs significantly impact cash fluctuations—like Payroll, Collections, AP, Tax, and others—is essential.” 2. The Art of Building an Effective Liquidity Structure One of my favorite insights from our conversation came when discussing the key factors for setting up an effective liquidity structure. Devin outlined three critical elements: These might sound straightforward, but the execution is where many companies struggle. As Devin notes, it’s about being proactive: “You need to plan for debt payments, large tax payments, payroll payouts like bonuses and commissions.” 3. Handling the Unexpected Perhaps most valuable was Devin’s perspective on navigating unexpected changes in liquidity needs. He shared a particularly insightful example: “An acquisition or strategic transaction can sometimes come unexpectedly. Depending on your organization’s cash structure, you might need to review your maturing investments to confirm whether you have sufficient cash on hand to execute.” But what about when you’re facing a cash crunch? Devin’s practical advice hits home: “If your organization has limited cash and equivalents—perhaps collections are falling short of the plan—you may need to navigate a cash low point. Delaying AP while managing vendor relationships and exploring short-term credit options, like revolvers, can help maintain liquidity.” 4. The Technology Factor One area where I was particularly curious about Devin’s perspective was the role of technology in modern treasury operations. His view aligns closely with what we’re building at Nilus: “Technology and automation can be very useful when it comes to liquidity management. Tools that automate the mapping of actuals and set forecast inputs based on those actuals save significant time when building cash positions or forecasts.” What I found especially interesting was his perspective on TMS solutions: “From my experience with various tools, including legacy TMS providers, they can provide value through immediate actuals mapping and robust controls that improve efficiency and oversight. However, legacy systems can fall short when it comes to unique or evolving needs.” This is exactly why modern treasury teams need solutions that combine the robust functionality of a TMS with the flexibility of Excel-like workflows. The ability to collaborate in real-time, leverage AI for automation, and adapt quickly to changing requirements has become essential for today’s treasury operations. Looking Ahead As we wrapped up our conversation, one thing became clear: the role of treasury is becoming increasingly complex and strategic. The days of pure cash management are behind us. Today’s treasury leaders need to be technologically savvy, relationship-focused, and always prepared for the unexpected. More from Nilus Join our Treasury Community Treasury Masterminds is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below. Notice: JavaScript is required for this content.
Franklin
Why your risk management system might be sabotaging your business
written by Jeroen Overmaat with his background of Sales at Kyriba Amsterdam, July 28, 2025 Most treasury systems are digital scorekeepers. They track what happened, calculate some numbers, and generate reports. But here’s the uncomfortable truth: tracking risk isn’t the same as managing it. Your current risk management platform probably falls into this trap. It tells you about problems after they’ve already cost you money. It creates beautiful dashboards showing yesterday’s volatility. And it generates compliance reports that make auditors happy but don’t actually improve your business outcomes. The gap between risk tracking and risk management has never been wider. Companies are drowning in data but starving for insight. The scorekeeper problem Traditional treasury systems solve only part of the risk equation. They track transactions, value positions, and generate accounting entries. They don’t improve your risk programs. This creates a dangerous illusion of control. You have visibility into your exposures, so you assume you’re managing risk effectively. But visibility isn’t management. It’s just expensive record-keeping. Consider the 2008 financial crisis. Firms with basic tracking systems collapsed under pressure. Companies with proper hedging, diversification, and real-time monitoring emerged stronger. The difference wasn’t luck. It was the gap between scorekeeping and strategic risk intelligence. Risk isn’t an abstract concept. It’s the hidden variable shaping every financial decision your company makes. Some businesses use risk management to adapt and grow stronger. Others ignore it and become cautionary tales. What real risk management looks like Effective risk management requires five steps that most systems can’t handle properly. First, you need to identify existing risks through systematic assessment. This isn’t just brainstorming in quarterly meetings. It’s continuous monitoring across all business units, currencies, and market conditions. Second, you assess risks by understanding root causes and business impact. Not all risks are equal. A sudden credit downgrade isn’t the same as missing a loan payment. High-priority risks require immediate action. Third, you prioritize based on severity and urgency. Because it’s impossible to mitigate all risks simultaneously, smart prioritization becomes your competitive advantage. Fourth, you develop appropriate responses. Avoidance, mitigation, or acceptance. Each strategy requires different tools and different levels of automation. Fifth, you create preventive mechanisms for ongoing monitoring. Risk management isn’t a project with an end date. It’s an operating system that runs continuously. Most treasury platforms fail at step three. They can identify and assess risks, but they can’t prioritize intelligently or automate responses effectively. The daily rate complexity trap Here’s where things get interesting. Companies operating in daily rate environments face a particular challenge that exposes the limitations of traditional systems. Daily rate companies need automated daily exposure capture, real-time analytics, and frequent hedge adjustments. Manual processes simply can’t keep pace with market volatility. A company like Ecolab eliminated €40 million in FX volatility by moving from manual monthly processes to automated daily risk management. Single rate companies have different problems. They rely heavily on forecasting accuracy and periodic true-up adjustments. They need sophisticated scenario modeling and what-if analysis capabilities. Most treasury teams are stuck managing mixed methodologies across different entities. This creates operational complexity that traditional systems can’t handle elegantly. You end up with multiple point solutions, manual workarounds, and gaps in coverage. The result? Treasury teams spend their time processing data instead of managing risk. Beyond tracking to intelligence The most effective tools combine AI-driven analytics, integrated financial modeling, and automated compliance tracking. However, the key differentiator is platforms that provide complete back-office risk automation rather than just tracking capabilities. Leading solutions offer embedded risk analytics that capture, normalize, and quantify risk across multiple asset classes (FX, interest rates, commodities) while enabling automated hedge execution and accounting entries. Look for platforms that integrate pre-trade exposure analysis with post-trade position management and hedge accounting. They capture, normalize, and quantify risk across all business units simultaneously. They enable actual mitigation instead of just measurement. This isn’t about having better dashboards. It’s about having systems that improve your risk programs through intelligent automation and decision support. Companies report quarterly risk reduction savings, automation cost savings and error reduction benefits. More importantly, they achieve earnings predictability and financial stability that supports strategic growth initiatives. The technology exists to move beyond scorekeeping. The question is whether your organization is ready to make the shift. Leading tools feature embedded risk analytics, automated hedge accounting, and complete back-office automation. The leadership challenge Effective risk management requires active senior leadership involvement. Executives need to understand that risk management isn’t a defensive strategy. It’s a competitive advantage that creates stability, protects investments, and identifies opportunities others miss. This means supporting teams with sophisticated platforms that provide actionable intelligence, not just data. It means embedding risk considerations into all business activities. And it means fostering a culture where risk awareness drives better decision-making. The ability to anticipate and control risk separates elite financial professionals from the rest. In finance, the cost of poor risk management isn’t just monetary. It’s reputational. How to bridge the gap? Treasury systems typically solve only part of the risk equation. They track transactions, value positions, and generate accounting entries. They don’t improve your risk programs. What I have learned in the past few months working for Kyriba and talking to prospects and customers and seeing the vendor selection first hand: Kyriba stands apart from other treasury risk management systems by delivering complete back-office risk automation and embedding risk analytics to capture, normalize, and quantify risk. This enables you to mitigate risk exposures and reduce volatility in your financial statements. The difference lies in the embedded approach. Instead of bolting risk analysis onto existing processes, Kyriba builds intelligence into every transaction. Pre-trade exposure analysis tells you about potential risks before you create them. Automated hedge effectiveness testing runs continuously in the background. Real-time position management adjusts as market conditions change. This integrated approach handles the complexity that breaks traditional systems. Multi-currency exposures across different rate methodologies. Automated accounting entries that comply with IFRS9 and ASC 815. Comprehensive audit trails that satisfy regulators without creating administrative burden….