A Letter from the Chairman
by Nigel Grey, Director, Berkshire Royale (Pty) Ltd.
I am delighted to introduce this special issue of The South African Treasurer, which this year has the theme of ‘Risk – Transforming Treasury’, and is published in association with Treasury Management International. The magazine continues to form one of a wide and varied spectrum of events and publications organised by ACTSA, whose members have this year enjoyed various networking events, and a series of informative breakfast meetings on current treasury topics.
Last year I mentioned that the Board’s education committee had been exploring opportunities with a local university to improve the educational offering for people involved with treasury operations. I am pleased to announce that the Association, in association with the University of Johannesburg, has developed a programme entitled ‘Fundamentals of Treasury Practice’ comprising seven independent short modules. This will be launched in 2015. It is focused on enabling people involved in treasury activities to develop operational excellence in their workplaces.
The overriding theme throughout this edition is that of understanding the risk management challenges that impact the treasury function and the experience gained from the fall-out from the 2008 crisis. Do treasurers understand how their role has evolved and that they now play a more active role, are more visible, must be prepared to deal with volatility and be aware of the fundamental importance of access to liquidity? Treasurers also need to understand the unique challenges that exist in emerging markets.
The impact of regulatory changes in the financial markets (Basel lll) and the progression of accounting standards (IFRS) will add to the challenges that treasurers now face. The financial crisis also highlighted the importance of banking relationships. In line with the regulatory changes banks have had to become more innovative in finding alternative funding sources
The risk dynamics that influence treasury are assuming more prominence in the life of treasury professionals as the modern ‘interconnected’ world gathers momentum. No doubt there will be future crises to be faced, and the various articles in this publication will assist you in developing best practice in your treasury operations.