This final lesson examines the practical financial issues that treasury professionals encounter and the measurement of treasury performance .

8.1 Practical Financial Issues

The ACT Diploma covers “a number of practical financial considerations and issues that are typically encountered by treasury” . Key areas include:

• Debt Documentation: Loan agreements, bond indentures, and financial covenants.

• ISDA Documentation: Master Agreements and Credit Support Annexes.

• Regulatory Compliance: AML, KYC, and sanctions screening.

• Risk Management: Identification, measurement, and mitigation of treasury risks.

Treasury professionals must be able to assess and manage these practical issues effectively.

8.2 Measuring Treasury Performance

The ACT syllabus requires candidates to “examine the importance of objective setting, problem solving and project management skills” and “assess a range of tools and techniques to analyse and improve treasury performance” . Key areas include:

• Performance Metrics: Key Performance Indicators (KPIs) for treasury operations.

• Benchmarking: Comparing performance against industry standards.

• Reporting: Reporting treasury performance to the board and senior management.

8.3 Communication and Stakeholder Management

Effective communication and stakeholder management are essential for treasury professionals. The ACT Diploma covers “a range of tools to communicate and negotiate effectively, and develop commercial acumen as well as identify opportunities for the application of innovation within treasury” . This includes:

• Internal Reporting: Communicating treasury performance to the board.

• External Communication: Managing relationships with banks, investors, and regulators.

• Negotiation: Negotiating funding and risk management agreements