The life of an interim treasurer

This article is written by Pecunia Treasury & Finance B.V.

We can be “normal” treasurers:

Being an interim treasurer is a bit like being a regular treasurer, but with a twist. Instead of settling into a long-term position, you’re the flexible solution, stepping in when needed due to someone leaving or falling ill. These stints typically last anywhere from three to six months, sometimes even stretching to a year. During these assignments, you become an integral part of the organization, taking on the day-to-day responsibilities until a more permanent replacement is found. However, there’s an inherent uncertainty that comes with each new assignment. You never quite know what challenges or dynamics you’ll encounter until you’re knee-deep in the role, and that unpredictability is just part of the life of being an interim manager.

Or consultants:

There’s another facet to this role: providing treasury support. This involves lending a hand to existing teams or individuals working on treasury-related projects. These projects can range from short-term tasks to more extensive undertakings that demand specialized attention. Often, the existing team lacks the bandwidth to tackle these projects alone, or there’s a pressing deadline looming. For instance, I once assisted a large organization in Rotterdam with delving into embedded derivatives to ensure compliance with new regulations. Within a few weeks, we had the project wrapped up, and my findings were integrated into the annual report. Another project involved constructing a RAROC (Risk-Adjusted Return On Capital) model for a client, enabling them to evaluate the profitability and risk associated with different banks and lending practices.

Even implementation managers:

Moreover, an interim manager in the treasury realm often wears multiple hats, extending beyond traditional financial roles. For instance, they might serve as implementation consultants for Treasury Management Systems (TMS) or payment hubs. This requires not only a deep understanding of treasury operations but also technical proficiency. Interim managers with expertise in these areas can guide organizations through the complex process of selecting, customizing, and integrating these software solutions into their existing infrastructure. By leveraging their technical skills, they ensure seamless transitions and optimal utilization of these systems, ultimately enhancing efficiency and accuracy in treasury operations.

Or parttime:

But the role doesn’t stop there. Sometimes, especially in smaller firms, a full-time treasurer isn’t feasible. Instead, the CFO or controller might double up on duties, handling Treasury responsibilities on a part-time basis. This is where a part-time treasurer, like myself, can step in. By taking on the treasury tasks, I free up the CFO’s time for their core responsibilities while bringing in expertise tailored to the treasury function. For instance, I once assisted a real estate company with valuing their interest rate derivative portfolio, managing their cash flow, preparing Treasury reports, and handling any ad hoc issues. All this was accomplished within eight hours a week, allowing the company to benefit from specialized expertise without the need for a full-time hire.

Or we do a Treasury or FX scan:

If you’re unsure whether your company’s treasury practices are optimal, a treasury scan or FX scan could be the answer. This involves conducting a thorough evaluation of the existing Treasury & FX processes and practices, identifying potential areas for improvement. A quick and dirty scan can be

completed in just one day if the necessary data is provided in advance. While there’s a cost associated with the scan, it’s often outweighed by the savings generated from implementing the identified improvements. Plus, these savings can be realized either by the company itself or through continued collaboration with a flexible treasurer like myself.

For more information about the scan or if you are in need of an interim manager in Treasury, please contact Pecunia.

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February 23, 2024

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