Preface

IN THE CONTEXT OF TODAY’S business world and volatile markets, be it the efficient management of money, managing the financial risks for the firm, or raising and running capital and the balance sheet, the treasurer’s function has become a critical cog in the wheel of an enterprise’s smooth functioning.

This book is a ready reference for anyone interested in the nuances and practicalities of the large world of corporate Treasury. It is designed to be a bottom-up building block for readers interested in knowing more about corporate Treasury, very similar to the training programmes that we at Aktrea run for our clients, across basic, intermediate, and advanced levels. In the book, I cover cases from our existing case database and also pick up experiences from corporate and banking experts touching on challenges and solutions across the world.

To borrow a soccer term, the concept of total football, where every player is expected to take on the roles of defender, midfielder, or forward when required, is applicable to most global treasurers. The reality for corporate treasurers is that they are expected to be all-rounders, and for employees in Treasury, their functional knowledge across all aspects of Treasury increases their mobility within, and outside, the firm. In short, treasurers cannot afford to have one technical strong point. They are expected to have multiple strengths, given the demands of their role.

In this context, a book that covers the entire corporate Treasury space should be a welcome offering for its target market, where readers can pick off one book, an all-rounder, covering all themes relevant and applicable for managing a successful and efficient corporate Treasury.

For CEOs, CFOs, and treasurers looking to re-align their treasuries with the growth of the global firm, bankers who seek to increase their dialogue and value created for their corporate clients, Treasury and finance employees and students requiring a more holistic perspective on the corporate Treasury function in the context of their roles, or aspirants into corporate Treasury, this book provides an easy-to-read, simple-to-assimilate approach to this exciting and increasingly complex world.

The Toolkit provided also gives practitioners an available reference point that they can adapt immediately for use in their firms, thereby also providing a low-cost, high-efficiency advisory solution hitherto not easily available.

FOR WHOM IS THIS BOOK INTENDED?

Managing or working in a successful corporate Treasury assumes a basic learning, awareness, and understanding of key aspects and themes and then the ability to put these to practice where required.

This management starts with developing a deeper understanding of various aspects:

• The transactional element of the cash and liquidity of the group
• The balance sheet and sources of capital and liquidity of the group
• The various financial risks for the group

It also involves implementing and driving key firm and group elements, such as policy, systems, and structure and managing people.

The Handbook of Global Corporate Treasury, in its current version, aims to logically construct, using a unique bottom-up approach, the building blocks for learning and follows this through with a Toolkit that practitioners can pick up and customize for their own corporate use.

The book is intended as much as a medium for learning as it is for a useful starting point to create a robust Treasury model. I use my experience of having advised and trained corporates across countries, especially multinational firms, to generate a single and powerful point of reference that is as informative as it is educational.

Through this book, I am hoping to provide:

• A reliable and available knowledge base for CEOs, CFOs, and treasurers of firms that are looking to redesign or reengineer their Treasury and funding activities
• A practical go-to source for treasurers and CFOs of companies that are increasing their footprint across countries or becoming more global
• A ready-made perspective on their roles within a larger framework for employees within corporate Treasury and for other employees who interface with or handoff to Treasury
• A reference for bankers covering corporate treasuries to engage in more meaningful conversations with CFOs and treasurers as well as look for opportunities to add value for their clients
• A guide to the world of Treasury for those who aspire to corporate Treasury roles
• An introduction to the world of corporate Treasury for postgraduate students who are exploring career alternatives or doing course work in institutions-related themes
• Quick education material for service providers including consultants, auditors, lawyers, system vendors, processing agents, and others who interface with or are about to commence services for the Treasury of a company

FEATURES OF THE BOOK

The flow of this book has been created to ensure maximum readability and to facilitate quicker grasp of concepts and practical aspects. Throughout the book, illustrations, boxes, snippets, and diagrams help to articulate concepts and thought processes for a stronger understanding. Cases, examples, and experiences from a diverse set of experts with deep and varied experiences helps to provide different perspectives to round up the learning. For readers interested in numbers and the number aspect, many examples have been provided.

The Toolkit from the Website provides ready-to-use templates that the readers can customize, adapt, enhance, and use for their operations. The tools provided are generic; care must be taken to review applicability and add elements that the reader’s firm or clients will need to suit their own specific company and regulatory and other environments.

We are also in the process of bringing a mobile app for the Handbook—the app is expected to have multiple new features and be an interactive tool for the buyers of the book and the author.

Support will be available to a degree on the Website and the planned app for further explanations and examples. The blog at the Website is also expected to be a useful source of market updates and regular features from contributors and readers.

Updates to the Handbook, as relevant, in between versions, will be available from time to time on the Website—so do please check www.wiley.com/go/treasuryhandbook for the same.

HOW THE BOOK IS STRUCTURED

The structure of the book is similar to how we run our rigorous but fun training programmes and courses at Aktrea: First I introduce concepts, the basic building blocks, across each of the themes: cash, liquidity, financial supply chain, working capital, trade, balance sheet, funding, markets and risk. I then cover key tools that readers can adapt to their organizations and contexts.

My aim for the book is that it serves not only as a learning tool but also becomes, for practitioners, an advisory manual as they work on improving their treasuries. This goal is in line with our consulting/advisory work.

Our collective learning has been embedded into this book. The material on which this book is based comes from years of working with treasuries across the world for multinational companies, developing and advising on products and solutions, as well as training employees of these firms and the bankers who service them.

All the themes are relevant and form a bulk of discussions that we at Aktrea have with CEOs, CFOs, and treasurers of firms around the world.

HOW CAN YOU READ THIS BOOK?

This book can be read in many ways. The first, and most obvious, one is to pick up the book and go step by step, chapter by chapter, operationally and organically. The book uses a spiral method of teaching, where elements are referred to initially in context, explained further, and inserted into the wider context of Treasury operations.

You also can start with any area of the book and work through it—each section and each module stands alone in its concept of explanation, building fundamentals, and practical casework. References are made to other sections and chapters for continuity and context, and readers can refer to these areas immediately for a complete contextual understanding of each module.

MAY THE BOOK BEGIN

Writing a book in the field of one’s work is an honour. Putting into words one’s learning and experiences augmented by experts’ views in their own words, with the objective of sharing and letting others benefit from one’s knowledge (or the lack of it!), is the privilege that few attain in their lifetime.

And so it is with me. With these words, dear reader, I hand you over to the book, for it shares with you its contents and takes you on your path to more knowledge.

It has been my most sincere effort to be factually, conceptually, and philosophically accurate in my rendition of experience and fundamentals. In case there are any errors or aspects that you might disagree with, I offer my humble apologies.

I would love to hear your feedback and keep improving this text over the years. One of the most critical components to do that would be to get your input, perspectives, and comments on what you liked and where you think this book can be improved. I have embarked on this journey, and I know now that I am not alone, for you, dear reader, have joined me in it. I need your support to continue, and continue well. Thanks in advance for your feedback and comments.

May the light and happiness of knowledge shine upon you.

Rajiv Rajendra

Singapore

October 2012