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In a time where geopolitical tensions, FX volatility, and global market uncertainties dominate the financial landscape, the treasury function has evolved far beyond its traditional role of managing cash and liquidity. Today, corporate treasurers are seen as strategic partners within organisations, playing a critical role in navigating risks, ensuring financial stability, and driving long-term growth. This shift reflects the increasing complexity and scope of treasury responsibilities, requiring a more holistic approach to risk management, technology integration, and capital allocation.

Séverine Le Blévennec, global head of treasury at Aliaxis, offered a unique perspective on this evolution when interviewed by co-creators Hussam and Guillaume for the Corporate Treasury 101 podcast. With a deep understanding of both traditional treasury functions and emerging trends, Le Blévennec provides valuable insights into how modern treasury teams are adapting and thriving in this new environment. Her approach reflects a broader transformation within the field, where treasury is no longer just a support function but a critical driver of business strategy and value creation.

The expanding role of treasury

Historically, treasury departments were primarily focused on managing cash flows, ensuring liquidity, and handling financial transactions. However, the role has significantly expanded in recent years. Today’s treasurers are expected to contribute to strategic decision-making processes, optimise capital structures, and manage financial risks with a forward-looking perspective.

Le Blévennec emphasises the shift from traditional cash management to a more strategic approach. “Treasury is now closely cooperating with the strategic planning of the organisation. We are not just monitoring cash positions but actively contributing to decisions that impact the company’s overall financial health and strategic direction,” she explained.

This shift has been driven by several factors, including increased complexity in global markets, regulatory changes, and the need for more sophisticated risk management strategies. Treasurers are now involved in evaluating investment opportunities, managing foreign exchange risks, and ensuring compliance with global regulations, all while aligning their strategies with the company’s long-term goals.

Embracing technological innovations

One of the most significant changes in treasury management has been the integration of advanced technologies. From automation and digital tools to artificial intelligence and blockchain, technology is reshaping how treasurers operate.

Le Blévennec highlighted the role of technology in enhancing operational efficiency and accuracy. “Automation has revolutionised our processes, allowing us to handle high volumes of transactions with greater precision and speed. Digital tools also enable us to make more informed decisions by providing real-time data and analytics,” she said.

For example, automation of routine tasks such as payment processing and reconciliation can reduce manual errors and frees up valuable time for strategic activities. Real-time data analytics tools provide treasurers with insights into cash flow patterns, risk exposures, and market conditions, allowing for more proactive decision-making.

Strategic risk management

In today’s volatile economic environment, managing financial risks has become a critical focus for treasury departments. The ability to identify, assess, and mitigate risks is essential for safeguarding the organisation’s financial stability and achieving its strategic objectives.

Le Blévennec discussed how Aliaxis approaches risk management. “Our risk management strategy is designed to be both comprehensive and agile. We continuously monitor market conditions, economic indicators, and regulatory developments to anticipate potential risks and develop mitigation strategies,” she explains.

Key aspects of modern risk management include managing currency and interest rate risks, addressing liquidity challenges, and ensuring compliance with regulatory requirements. Treasurers use various tools and techniques, such as hedging strategies and scenario planning, to manage these risks effectively.

By incorporating advanced risk management practices, treasurers can better protect their organisations against adverse financial conditions and ensure long-term stability. This proactive approach is essential for navigating uncertainties and capitalising on opportunities in a rapidly changing market.

Strategic partnerships and collaboration

Collaboration with other departments and external partners is another crucial aspect of modern treasury management. Treasurers must work closely with finance, accounting, and operational teams to align strategies and ensure smooth execution of financial processes.

Le Blévennec underscores the importance of collaboration in her role. “Effective treasury management requires strong partnerships both within and outside the organisation. We work closely with our finance and accounting teams to ensure that our strategies are aligned with the company’s overall objectives,” she noted.

Additionally, building relationships with banks and financial institutions is vital for accessing financial services and products that support treasury activities. Strategic partnerships with these external entities can provide treasurers with valuable insights, access to financing options, and support for managing financial risks.

The future of treasury management

Looking ahead, the role of treasury is expected to continue evolving in response to emerging trends and challenges. As technology advances and global markets become more interconnected, treasurers will need to adapt and innovate to stay ahead.

Le Blévennec shared her vision for the future of treasury management. “The future of treasury will be defined by increased automation, enhanced data analytics, and a greater emphasis on strategic alignment. We will continue to see more integration of technology and a focus on driving business value through proactive and strategic management,” she predicts.

In conclusion, the treasury function has undergone a profound transformation, driven by technological advancements, increased complexity, and a broader strategic mandate. Séverine Le Blévennec’s insights highlighted the dynamic nature of modern treasury management and the crucial role it plays in supporting organisational success. As treasury continues to evolve, its impact on business strategy and value creation will only grow, making it an essential component of any successful organisation.

Listen to the full interview with episode Séverine Le Blévennec on the Corporate Treasury 101 podcast. All episodes are available here: https://corporate-treasury-101.com/all-the-episodes/

Born out of a shared vision to democratise treasury education, Corporate Treasury 101 emerged in March 2022 as a podcast by co-creators Hussam and Guillaume. With a commitment to making complex treasury concepts accessible to all, they release two  episodes weekly, featuring interviews with industry experts and enlightening educational content.