This lesson examines the evolution of the treasury function from a back-office cost centre to a strategic partner that drives business value.

5.1 The Evolving Role of the Treasurer
The modern treasury function is a strategic partner to the business. Its role is to support the achievement of corporate goals by managing the company’s financial resources and risks. The ACT’s Certificate in Treasury (CertT) includes “Corporate finance” as a core topic, exploring “how financial decisions drive business value, investment evaluation, and strategic performance” . This shift means treasurers must now possess strong analytical, communication, and advisory skills .

5.2 Capital Structure and Long-Term Decision Making
A key strategic responsibility is managing the company’s capital structure. The CTP exam dedicates a whole domain to this, requiring professionals to “Manage capital structure, manage costs of long-term capital, and quantitatively evaluate long-term capital resource investments” . This involves:

  • Evaluating the optimal mix of debt and equity.

  • Making decisions on raising long-term capital.

  • Advising on complex issues like dividend policy and the financial assessment of Mergers and Acquisitions (M&A) .

5.3 Strategic Bank Relationship Management (BRM)
The treasurer acts as the central point of contact with the company’s banking partners. The CTP domain on “Manage internal and external relationships” emphasises the need to “Build, maintain, and review relationships with external financial service providers” and “Evaluate and implement treasury products and services” . This involves:

  • Selecting banks based on service capabilities, technology, and pricing .

  • Negotiating fees and service levels.

  • Regularly reviewing service performance to ensure best practices and competitive pricing .

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