How things have changed. When I first started in a dealing room, there wasn't much knowledge to be shared around; indeed, many people considered dealing to be an instinct. You just learned as you went along, and hopefully, some magical insight would come your way. Today, it's different. If you're starting in treasury, there are several key skills that you require.
You need to master some of the technical knowledge—let's call it the hard skills—to understand financial instruments, market dynamics, and risk management principles. It's non-negotiable; you either know it or you don't, and if you don't, you are always going to be missing some of what is happening. This is not just the mechanics, and it isn't an academic understanding; it's practical knowledge—the impacts from decision-making. In short, experience counts. It is quite amazing how much you can learn from doing a job on a day-to-day basis.
In addition to mastering these hard skills, it's crucial to stay updated with the latest technological advancements in the financial sector. The rise of fintech, blockchain, and algorithmic trading (much of which has passed me by) has dramatically transformed the landscape. Being proficient with analytical tools and platforms gives you a significant edge. Furthermore, understanding regulatory frameworks and compliance requirements is essential, as the financial industry is heavily regulated and will remain so.
But this technical prowess doesn't operate in isolation. Soft skills frequently differentiate between competent treasury professionals and exceptional ones. Communication is particularly important. What we do is complicated and getting the message across in a way people understand gets results.
I've seen many situations where people who are technically gifted fall down on their explanations. This is a huge source of frustration for all concerned. The next time you write something, ask yourself, can the layman understand it?
Moreover, effective communication isn't just about simplifying complexity; it's also about listening. Understanding concerns and objectives facilitates better collaboration and leads to more informed decision-making.
How often have you seen situations where marketers want to price things uneconomically, whilst the true cost of hedging is passed on? Getting to the nuts and bolts of why and how we price things based on their cost is essential.
Self-awareness is also a skill that needs to be developed. In a high-pressure environment, emotions can influence choices. It's easy to think that you are right and the market is wrong, and therefore hold out on past decisions. Standing back, taking a measured view and changing your mind can be a strength.
But trust was the main attribute I looked for when running a treasury.
Can I leave this person to get on with the job and know that it will be done properly and without cutting corners?
Is this person someone that I feel comfortable with when they are taking risks?
Are they overconfident in a way that could be costly?
Do they acknowledge when they are getting things wrong?
Do they ask when they do not know?
These things are essential; if you can't trust the people that you are working with, you are in trouble.
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