In this episode of Corporate Treasury 101, we dive into the evolving role of corporate treasury and explore how it can shift from a traditional cost center to a strategic business partner. Our guest, Kurt Smith, Director at Marengo Capital and Vice President of the Australian Corporate Treasury Association, shares actionable insights on how treasury teams can move beyond operational functions and start driving enterprise value. We explore how treasurers can help define risk appetite, optimize capital allocation, and influence key business decisions. From understanding the strategic importance of metrics like ROIC and WACC to navigating internal relationships and regulatory discussions, this episode is packed with practical advice for any treasury professional looking to elevate their impact.

Kurt Smith draws from decades of experience in fund management, derivatives trading, and treasury consulting to explain how corporate finance teams can move upstream in the value chain. He breaks down what it means to be a strategic treasurer, how to optimize working capital through better cash conversion cycles, and why financial acumen should be embedded across treasury teams. We also discuss the state of treasury in Australia, how ACTA supports professionals through networking and education, and how treasurers can embrace AI to free up time for higher-value work.

What You’ll Learn in This Episode

1. How to reposition treasury from a cost center to a value-adding business partner
2. The importance of aligning treasury with enterprise risk appetite and capital allocation
3. Why understanding ROIC and WACC is critical for measuring impact
4. How to improve working capital through smarter cash conversion and internal advocacy
5. Real-world examples of building treasury influence through operational and regulatory engagement
6. How ACTA is raising the bar for treasury professionals in Australia
7. Where AI fits into the future of strategic treasury

Episode Breakdown & Timestamps

[00:00] – Introduction & AFP Partnership ($100 Off CTP Certification)

[01:00] – Kurt Smith’s Background and Role at ACTA

[03:03] – What Treasury Departments Typically Focus On

[04:39] – Core Treasury Functions: Cash, Risk, and Funding

[06:15] – From Cost Center to Value Creation Unit

[09:12] – Defining and Influencing Risk Appetite

[13:36] – Operational vs. Strategic Treasury

[17:28] – KPIs that Matter: ROIC, WACC, and Enterprise Risk

[20:59] – Turning Treasury into a Profit Center

[26:00] – Strategic Cash Flow Management & Internal Advocacy

[30:37] – Case Study: Streamlining Insurance with Tech

[34:51] – Cash Conversion Cycle and Working Capital Optimization

[41:50] – Creating a Competitive Internal Market for Capital

[46:00] – Real-Time Cost of Capital: Why Treasury Should Own It

[55:00] – Treasury in Australia: Opportunities & Challenges

[01:03:00] – ACTA’s Role in Supporting Treasury Professionals

[01:10:00] – AI, Digital Tools & the Future of Strategic Treasury

[01:24:48] – Final Thoughts & How to Connect with Kurt

Follow our guest Kurt Smith:

• LinkedIn: https://www.linkedin.com/in/kurt-smith-phd-97053515/ 
• Website: https://www.marengocapital.com.au/ 

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#StrategicTreasury #CorporateFinance #CashFlowOptimization #RiskAppetite #ACTA #WACC #ROIC #TreasuryTransformation #FinancePodcast #CTPDiscount

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