If you are to point out three challenging executive-level positions in a corporation, you might miss naming corporate treasurers as among them. Perhaps because this position is oftentimes hidden from view, yet performs vital tasks.
One of the most difficult positions in a corporation is that of the corporate treasurer. While the President or the Chief Executive Officer enjoys the limelight because of the company’s glowing financial locus, it is the corporate treasurer that bears the brunt of the blow. The individual occupying that post cannot afford to make mistakes because doing so might jeopardize the financial standing of the corporation. If you are a corporate treasurer, surely you would know all about these.
The Evolving Responsibilities
As if the myriads of tasks involved with such position are not enough, emerging trends have unwittingly added more. According to Treasury-Management.com, some of the responsibilities of a corporate treasurer are to maintain contact with banks manage or forecast cash flow, and many more. Today, however, these have expanded to include managing interest or currency risks, as well as reviewing existing strategies with regard to company investments and funding. As a result, the corporate treasurer has become more of a strategic planner with decision making capabilities and has even earned a seat at the boardroom.
A Challenging Role
Perhaps one of the most difficult tasks of a corporate treasurer is cash management. According to Investopedia, it is the process of assembling cash and managing it, which sometimes would include placing said cash in worthwhile investments. This can help the company stabilize its cash flow and maintain its financial stability.
The cash management tasks of the corporate treasurer can definitely help companies stay afloat financially by ensuring accounts receivables are duly collected on time. This prevents the company from going belly up even in a volatile market situation. But since a lot of tasks are already being performed by the corporate treasurer, missteps can be easily made, albeit unintentionally. However, even if done inadvertently, such mistakes can become too costly for the corporation.
While most corporate treasurer has a team to lean on, it does not negate the fact that cash management, or whatever is left of it, is still their sole responsibility. To avoid such situation, perhaps it might be worthy to consider cash management professionals in Bloomington to handle this specific function. At least, doing so would lift one of the heaviest loads off the shoulders of the corporate treasurer.
The continuous changes in corporate and market trends are also resulting in bigger demands for corporate treasurers. As a consequence, they are now faced with the specter of meeting the increased expectations of company officers. Despite these developments, corporate treasurers continue to tackle the challenge and winning every step of the way.