Strategic Treasury

Page 2 of 5

The Functions of a Corporate Treasury At the end of 2008, Verband Deutscher Treasurer e.V. commissioned a survey to examine the functions of a corporate treasury. In addition, 142 corporate treasury job advertisements were examined and evaluated and compared to a similar evaluation performed in 2002.


Looking after contacts with banks and rating agencies, as well as discussions with credit insurers and, if applicable, suppliers concerning periods allowed for payment, in conjunction with the procurement of finance, also form part of the treasurer’s core business.

Matters are different as regards contacts with shareholders however, as shown by the frequent outsourcing of the subject of investor relations by the treasury. A typical feature – and this is indicated by the job vacancy advertisements – is the fact that equity capital procurement as opposed to external finance is only rarely mentioned.

A noticeable difference is found here in relation to the Anglo-Saxon treasury model in which, in addition to debt management, equity management does form part of the core functions.

The study demonstrates that credits are normally used for financing, whilst the typical capital market orientated corporate finance instruments are only used selectively, particularly in large corporations, which also explains the somewhat lesser significance of corporate finance as a core function. Own group finance companies are only found in one sixth of the companies.


The treasury’s core functions are confirmed by the analysis of job vacancy advertisements. Compared to 2002, an outstanding feature is that risk management and group finance in particular have gained considerable significance in the role of the corporate treasurer. It is worth noting however, that the percentages (Figure 4) are only a rough indicator of the content of the professional profile because, in the case of job vacancy announcements for executive positions, the various functions are not fully listed and, in the case of announcements for part-functions, such as cash management, the treasurer’s duties not to be allocated to this function, do not apply.

In addition, so-called marginal functions of the treasury can be identified with the aid of study 5:

  • Finance controlling
  • Project and export finance
  • Pension schemes and pension funds
  • Investor Relations
  • Mergers and acquisitions

Finance Controlling includes the part-functions of finance planning, finance control including financial structure control, as well as finance reporting systems. This range of functions plays an important role in all companies. In the case of half the interviewed companies, it even forms part of the core functions.

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