Treasury Management Strategies

If I were a Treasury leader at a high-growth company today, here are a 6 practical tenets of Cash Flow Forecasting that I’d deploy to ensure confidence and accuracy: 1) HISTORICAL DATA - start by gathering historical cash flow data from multiple sources – revenue, expenses, payroll, and other outflows. - then use this data to build a baseline forecast by identifying patterns like seasonality, subscription renewals, and recurring expenses. - it’s important to also contextualize the data by meeting with the teams involved in these functions. - too often I see early Treasurers fail to connect the dots due to a lack of understanding of the data story. 2) SYSTEMS AND DATA - connect the ERP, CRM, billing systems, and bank feeds to centralize data collection. - disaggregated data sourcing increases delays and errors, - which is why I suggest using an automation tool (like Nilus) and AI-powered forecasting to help predict future cash flows based on predictive analytics, bottom-up ERP data, and customer & vendor payment behavior. 3) SCENARIO PLANNING - build various cash flow scenarios to prepare for different outcomes - best-case, worst-case, sensitivity scenarios based on market volatility, Cx churn expectation and unforeseen costs. - by understanding a litany of scenarios that could drive the business, you will not only have a more granular understanding of business impact, but become able to more quickly connect the dots. 4) REAL-TIME ADJUSTMENTS - prioritize using tools that provide real-time visibility into cash positions across bank accounts and currencies, and set up automated alerts for significant changes (e.g., if cash balances drop below a certain threshold) so strategies can be adjusted swiftly. 5) REVIEW AND COLLAB - ensure that treasury and finance teams meet regularly to review the forecast. - forecasting shouldn’t exist in a silo—it needs to align with broader business strategies like expansion plans, investments, etc. and treasury has got to stay in the loop. 6) LIQUIDITY - manage working capital by adjusting payment schedules, accelerating collections, and optimizing idle cash for short-term investments. - liquidity is about getting cash to work efficiently, so make sure every dollar is positioned to drive value. By following these steps, your team should have greater confidence in cash forecasts, helping the CFO and great C-suite make better decisions to support growth. PS - What tips would you add?

Advanced Hedging: Tackling Parallel, Non-Parallel, and Multiple Shocks I am thrilled to share this video with you all! It is the culmination of years of hands-on experience in managing complex hedging strategies, drawn directly from my time in the trenches of banking and treasury. In this video, I dive deep into advanced hedging techniques, including how to hedge against: - Parallel shocks - Non-parallel shocks - Multiple shocks occurring simultaneously These are not textbook strategies – they are my own, developed and refined through practical application. It is a blend of theoretical knowledge and real-world experience that I have lived and breathed over the years. For anyone working in treasury, ALM, or balance sheet management, this is designed to add real value by showing you actionable strategies to manage volatility effectively and prudently. Whether you are preparing for a rate environment shift or managing basis risk, this content is crafted to help you think strategically about hedging in a way that is both realistic and achievable. Let me know your thoughts or any questions in the comments! I am eager to hear how this resonates with your own experience in hedging.

🌟 **Why I’m Sharing My ALM Modeling Knowledge** 🌟 After 15 years in Bank Treasury Asset-Liability Management (ALM), I’ve decided to publicly share insights on IRRBB, deposit modeling, liquidity stress testing, and more. Here’s why: **Bridging the Gap Between Theory and Practice** Throughout my career, I’ve observed a critical disconnect: while treasury teams rely on software to project NII and EVE metrics, many struggle to balance *repricing risk* (short-term earnings) with *duration risk* (long-term economic value). This “black box” approach can obscure strategic decision-making, especially when assumptions or model limitations aren’t fully understood. **My Goal? Practical Clarity.** ALM isn’t just about outputs—it’s about asking the right questions: - How do deposit behaviors impact risk exposure in rate shocks? - What level of model granularity is truly actionable? - Are stress tests aligning with strategy or just compliance? I’ll share examples from my experiences to demystify technical concepts and highlight how models translate to real-world balance sheet management. **Looking Ahead** If time allows, I aim to compile these insights into a **practical ALM handbook**—a resource focused on empowering teams to leverage models strategically, not just operationally. **Let’s Connect!** If you work in treasury, risk, or ALM and want to: ✓ Move beyond software outputs to mastering model *insights* ✓ Balance regulatory requirements with strategic risk oversight ✓ Discuss IRRBB, deposit decay, or prepayment modeling Together, we can build a more informed, empowered ALM community. 💡 *What ALM challenges resonate most with you? Share below!* #ALM #TreasuryManagement #IRRBB #RiskManagement #Banking

Since the fall of SVB earlier this year, treasury management has been at the top of every CFO’s priority list. While I don’t know how ongoing instability in the banking sector will play out, I do know that it makes life harder for finance teams. Finance leaders are diversifying their cash position across several accounts to minimize exposure to risk, but managing multiple bank accounts is really challenging. Most teams track their cash balances super manually, which is a time-consuming and tedious process of: ↳ Accessing passwords and credentials to multiple accounts ↳ Logging in ↳ Recording the balance of each account ↳Calculating any currency conversions ↳Plugging it into an Excel file with a formula calculating totals ↳ Rinse and repeat That can take hours, is prone to manual errors, and the cash position you get is never real-time. Multi-banking is here to stay. It’s time for finance teams to move away from this manual approach and look into automated treasury management systems. Control over your company’s cash is just too important.