Interview with IACT president

Patrick King, Jurys Doyle treasurer and president of the Irish Association of Corporate Treasurers (IACT), talks to David Clerkin.

You've just been elected president of the IACT. Please tell us about the organisation.

The IACT was founded in 1986. It has just over 300 members including treasury professionals from major Irish public companies, multinationals, commercial state entities, small and medium sized corporates and banks.

We provide a platform for treasurers to share knowledge and interact through events such as breakfast briefings How important is the treasury function for Irish businesses?

Understanding the risks inherent in a company's businesses is essential. Having the right control environment is critical to ensure that the cash and assets of the company are protected.

Not having the right risk framework may lead to substantial losses if the wrong foreign exchange strategy is put into place.

What are the main worries facing treasurers? Should they be most worried by currencies, interest rates or regulatory issues?

In the past, the typical treasurer had to manage two main risk groupings: interest rate, foreign exchange, inflation and commodity risk; and cash or financing risk (trying to get the best rate for deposits or the lowest borrowing rate).

But compliance risk has recently emerged as a third risk grouping. This includes compliance with applicable accounting, legal and other regulatory frameworks.

What effect did the euro have on the function? Did it make life easier or harder?

The euro has made the management of foreign exchange much easier in the case of exporters and importers to and from the eurozone.

But there are still significant management issues to look after because the two main countries that Ireland exports to Britain and US are obviously not in the eurozone.

What skills are needed in treasurers? How well served is the Irish workforce with these skills?

The role has evolved with the changes in the requirements of business.

While basic financial knowledge (funding, cashflow and cash management) is a given, an Irish treasurer is expected to have a thorough understanding of corporate finance, tax and compliance, as well as contribute to company strategy.

The Irish workforce is well served with treasurers.