What are the pros and cons of becoming a corporate treasurer?

The role of a corporate treasurer is a pivotal one within any organisation. Responsible for managing financial risks, liquidity, and ensuring efficient cash flow, corporate treasurers play a crucial role in maintaining the financial health of a company. However, like any career path, the role of a corporate treasurer comes with its own set of advantages and challenges. In this blog post, we will delve into the pros and cons of becoming a corporate treasurer to provide a comprehensive overview for those considering this career path.

Pros:

Financial responsibility and decision-making

Corporate treasurers have a significant impact on a company’s financial strategy and decision-making. They have the opportunity to shape financial policies, manage investments, and optimise cash flow, making them influential contributors to an organisation’s success.

Broad skill set

This role demands a diverse skill set, including financial analysis, risk management, communication, and knowledge of financial regulations. Corporate treasurers often find themselves engaging with various departments, enhancing their interpersonal and problem-solving skills.

Impressive salaries

Corporate treasurers are usually well-compensated for their expertise. Their high level of responsibility, strategic insights, and the potential to drive significant value for the company often result in competitive salaries and benefits. In the UK,corporate treasurers earn over £100,000 a year* – or even more in different industries and with experience.

Career growth

With the increasing complexity of financial markets and regulations, the demand for skilled corporate treasurers is expected to grow. This presents ample opportunities for career advancement and specialisation within the field.

Exposure to global finance

Many corporate treasurers are involved in international operations, managing foreign exchange risks and cross-border transactions. This exposure provides valuable insights into global finance and market dynamics.

Cons:

High pressure and stress

Managing a company’s financial risks and ensuring liquidity can be extremely stressful, especially during volatile market conditions. Corporate treasurers need to make quick and accurate decisions to safeguard the company’s financial stability.

Regulatory complexity

Financial regulations are ever-evolving, and corporate treasurers must stay updated to ensure compliance. Navigating through complex regulatory frameworks can be challenging and time-consuming.

Long hours

The role often requires long working hours, particularly during critical financial events or reporting periods. This can impact work-life balance and personal commitments.

Risk of liability

Given their involvement in financial decision-making, corporate treasurers bear a degree of legal and financial liability. Mistakes or oversights can have significant consequences for the company and the individual.

Constant learning

The financial landscape is dynamic, and corporate treasurers must stay informed about new technologies, market trends, and financial instruments. Continuous learning is essential to remain effective in the role. Now this could be a pro, if you like learning!

What qualifications are needed to become a corporate treasurer?

If you’re inspired to follow this career path, you need the right qualifications. CIMA’s qualification can provide you with a strong foundation in financial management, risk mitigation, and strategic decision-making – all essential for a successful corporate treasurer.

CIMA is made up of four levels: Certificate in Business Accounting, Professional Operational, Professional Management, and Professional Strategic. If you have an accountancy degree, or other relevant exemptions, you can start at the Operational level. But even if you don’t have any experience or qualifications, you can start CIMA at the Certificate level and work your way up.

Final thoughts

Becoming a corporate treasurer offers a range of opportunities and challenges. The role’s influence on an organisation’s financial health, coupled with the potential for high compensation and career growth, can be enticing. However, the stress, regulatory complexity, and long hours associated with the role should also be carefully considered. Aspiring corporate treasurers should weigh these pros and cons against their personal strengths and priorities to make an informed decision about pursuing this career path.

Interested in CIMA?

Have a look at our CIMA pages to find out more about the qualification – you can even try it free for seven days to make sure it’s the right one for you.