At Treasury Masterminds, we’re all about fostering meaningful conversations that inspire growth and innovation in the Treasury space. Recently, we hosted an insightful dialogue between our founder and board member, Patrick Kunz, and an ambitious junior professional, Prakhar Sinha, stepping into the world of treasury. What started as a straightforward interview quickly turned into a dynamic exchange, with Patrick offering seasoned perspectives on the Treasury landscape while also reflecting on the fresh inquiries brought by our guest.
In this blog, Patrick shares highlights from their discussion, touching on everything from treasury fundamentals to cutting-edge topics like AI, sustainable finance, and the evolving role of ESG. Readers will gain a behind-the-scenes look at the strategies he uses in assessing treasury processes, aligning with C-suite expectations, and navigating regulatory changes—all essential for a resilient treasury function in today’s complex financial world.
We invite you to dive into this conversation and discover practical insights that can benefit Treasury professionals at every level. At Treasury Masterminds, we’re dedicated to connecting and empowering the Treasury community, encouraging discussions that help treasurers adapt, evolve, and succeed.
Q.1 Could you please describe your professional experience and progression in the field of treasury management?
I have been in Treasury all my professional life. Starting as a cash and Treasury manager for a German multinational. A relatively small Treasury team of 10 and a wider team of 30 Treasury is great to learn fast about a company’s cash flow, financing, and risk exposures.
Q.2 Could you elaborate on the framework and methodology you use for conducting treasury assessments? Specifically, how do you evaluate the effectiveness of treasury processes, identify potential inefficiencies, and quantify cost savings through your treasury scan?
There is some adaptation to the client i do the scan for but basically a scan focussed on the 3 (potentially 4) pillars of treasury. 1) cash management. QUestions like how many bank accoutns do you have, do you have fill cash visibility. But also what are your cash management costs and are their benchmarked. 2) risk management. What is your FX and IR exposure. And do you understand the dynamics around it. How do you hedge and why ? Risk apetite But also cost of hedging (often a quick saver in a company). 3 financing: does your financing strategy align with comany goals. Does the financing provide enough flexbility? what if market dynamics or company cash flow changes. Derivatives. But also: benchmarking financing costs. Pillar 4 is about technology and automation: what tools can you use to help automate repetitive tasks or what tools can help you increase your treasury information.
Q.3 Given your experience with an online FX trading and payment platform, what is your perspective on the current state of the FX market? What key drivers do you believe are influencing FX risk today, and how can organizations effectively manage these risks in such a dynamic environment?
The FX market is one of the biggest in the world. Buying and selling currency daily, relating to world trade. If your company has FX risk it is important to manage it. It all starts with determining your risk apetite. Do i want to elimate my FX risk for 100% or is there some room for speculation e.g. hedging only 80%. Not only for speculation but for changes in exposure. Next key question is the hedging horizon. How far into the future do i want to hedge (or do I have relevant information to make a hedging decision). All this can lead to a FX policy which should be applied to in a company with FX risk.
Q.4 What are some of the key challenges you encounter when setting up treasury departments and acting as an independent advisor for treasurers?
It depends on the company. I always start with asking a CFO; where is your pain in your treasury. Is it acces to capital or is it global cash visibilitiy? it might be FX exposures or changing market conditions. Depending on where the biggest gap is that is the starting point of treasury focus. Build from there.
Q.5 What is your approach and mindset when persuading C-suite executives on treasury strategies? How do you ensure your recommendations resonate at their level?
A treasury that is in control means that the company has visibility of their current AND FUTURE cash flow. They have back up facilities with their banks if cash flows are lower then expected or when working capital is low. The treasury manages the FX and IR risk and makes sure cash is at the right time and the right place. A good treasury makes sure the CFO can sleep at night and doesnt have to worry about cash and financial risk.
Q.6 How do you ensure a strong synergy between the client and interim treasurer, making sure both parties’ expectations align for a successful partnership?
align the goals of the asignment up front and keep updating each other during the asignment. Agree on smaller key milestones and keep reporting on them. Create a culture of telling each other if you are not satisfied to keep each other honest.
Q.7 Can you share the journey behind TreasuryMastermind.com and how it has evolved? What has been its impact so far?
The idea of Treasury Masterminds is an online community and forum where treasurers can come to discuss and talk to each other. Via the forum to post questions (and get answers) and the blogs, webinars and podcasts to get information. Correct information that is independent. Even if it is from content partners it went though a selection process of our team to make sure it is not sales focussed but it is informational or educational. TM is for all treasury levels, both junior and senior.
It started as a hobby project but after only 9 months we reach thousands of people a month and added a team of 14 treasurers around us that support the mindset. SO we are here to stay and grow further.
Q.8 In a recent conversation with Dominic Lynch, sir, he highlighted a crucial point. He mentioned encountering numerous risk managers with a strong theoretical foundation who struggled significantly when it came to making practical decisions. What, in your view, could be the reasons behind such failures, and how can risk managers enhance their practical decision-making skills to bridge this gap?
Soft skills are key! Knowing the theory and doing calculations is 1 thing, but being able to apply it to business and make the final call to execute them is another. Two different skill sets. A good risk manager (and treasurer) needs both. Especially in this world we are in now where markets move fast and global interconnectivity.
Q.9: What has been the highlight of your career so far, and what advice would you offer to budding treasurers looking to embark on their journey? Where do you recommend they start?
I got an assignment at Just East Takeaway (then only Takeaway.com) to build their Treasury. After only a few months, they announced the merger with Just East (who has a Treasury team of 3). So I had to go from building a Treasury to integrating into an existing one. Lots of changes in a short time. Also, this at the start of the COVID pandemic.
My advice to starting treasurers. Learn how to solve complex problems in companies. Don’t know how? Learn how or at least solve parts of the problem. It shows your ability and willingness to learn and get things done. I have done that a lot and with 42 years, i have the treasury experience of a 55-year-old 😉
Q.10: What key skills and qualities do you prioritize when building a successful Treasury team?
Willingness to learn and grow. Stay hungry! Ability to self-start. Mostly soft skills, to be honest. But a decent Treasury knowledge base is needed as well. You need a combination of people. Some are technically strong; others have personality and project management. The total team has to ‘win’.
Q. 11: Could you walk us through what a typical day looks like for you as a Treasury consultant?
Sometimes it is operational if i am on an interim asignment; making sure the operations continue. If it is project based like an implementation a day could look like progress reports or calls with IT to discuss connectivity. It can be anything treasury related really. No day is the same (cliche but true).
Q. 12 How do you see the role of AI evolving in the treasury space, and what specific applications do you believe could revolutionize treasury management practices?
it will help automate recurring work. AI is not revolutionary and in a way we are using it for years already. Machine learning, RPA, API etc has been in use for years already, which is also a part of AI. Full AI functionalities with coding and learning abilities can help speed up these advancements. It is (for now) not yet replacing a treasurer but complementing.
Q.13 How is the focus on ESG (Environmental, Social, and Governance) considerations impacting treasury operations, and what strategies can treasurers implement to align their functions with sustainable finance principles?
It is not the first thing a treasurer would look at but it should be on their agenda. IF you can make it sustainable then you shouls. Green financing vs normal financing. Choosing a sustainable banking partner if possible. etc etc. Some ESG reporting might also be coming from treasury team.
Q.14 What sources do you rely on to stay updated on the latest trends and developments in the treasury and finance sector? Any recommendations for podcasts, blogs etc?
treasurymastermind.com obviously 😉. Besides them, there is also TMI, Treasury Today, Global Treasurer. But also some Treasury vendors and consultants, and the big four provide newsletters and blogs that can be of interest. Also connect with Treasury influencers on LinkedIn for their updates (I do that as well).
Q.15 What is your opinion on the current regulatory environment, particularly regarding the Basel norms, and how do you think these regulations impact treasury management practices?
All regulations that affect banks will indirectly affect treasury as well. Either on the costs of treasury products, the offering of derivative or hedging products or the availability of financing. Via the EACT treasurers do have some influence with the policy makers. It is important for treasurers to stay up to date on regulations as well. Even though it is sometimes boring and technical.
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