Been counting? Yes of course. Finance professionals all over the world pride themselves on getting their numbers right.
We spend enormous amounts of time and energy carefully crafting our ever increasing volume(s) of pin sharp, negligee transparent financial information only to become depressed when few ever read the information and even fewer rely on it. So have we increased the comprehensiveness of our financial information rather than perhaps its comprehension? Sadly, do we also further undermine its importance by qualifying our prospectus or adverts with the ever thoughtful statement of the obvious "past performance is no guide to..." or by giving no financial forecast of the future, lest we be held responsible for it? Perhaps even more worrying, do we actually fall short of providing answers to many of the critical issues which will drive future performance?
Yet internally within our respective organisations the position is often somewhat different. We strive to get a clear and accurate financial picture of the future, the business and financial risks which will shape our investment actions. We also try to build teams of fully competent, suitably qualified professionals.
So are we now approaching a tipping point? Has the recent global financial crisis unleashed the present day equivalent of the dinosaur destroying meteor impact? Will it be possible to spot the future winners and does your management team know what they are doing? Do they have the so called, “transparency with conviction”? Basically, is there trust and will the phrase, “can you do the business” be read with the right intonation?
Should we be starting to provide answers? Will the rise of integrated financial reporting channel our thoughts in a different way? For example, in a narrow sense, what could we say about financial risk management?
A. Attitude - what is your attitude or appetite to risk, compared to that of your competitors? What risks do you retain, which do you outsource (to the financial markets)? Are you attuned to the changing risk landscape?
B. Behaviour - what drives your risk management behaviour - is it appropriate?
C. Competence - are you competent? What is the evidence? Do you understand the risks and have the necessary skills, tools, resources and controls to manage them? Are those skills razor sharp; supported by continuing personal development? To what extent are the tools and resources future proof?
Our ACT CPD accredited employers are certainly committed to continuing professional development. After all, if your treasury team has advanced finance skills it makes business sense to keep them up to date. Remember Red Adair, the famous oil well firefighter that once said, “If it is expensive to hire a professional think how expensive it is to hire an amateur”. Of course, if treasurers ruled the world it would be a much more prosperous world. Our ACT motto, “Prosperity through stewardship” has never been more appropriate. Our top tip to employers is to hire a well-qualified and experienced professional treasurer. ACT qualified of course!
Now is your time to stand up and be counted. I look forward to seeing you in Glasgow…no ifs or buts.
Treasurers will rule.
See you there.
