Controllers Classified 6sense’s treasurer on managing risk in today’s world
In this episode of Controllers Classified, host Erik Zhou is joined by Eugene Spevakov, Treasurer and Head of Corporate FP&A at 6sense. The conversation begins by tracing Eugene’s path, highlighting his start in civil engineering and his transition into treasury and corporate finance.
The episode then dives deep into the primary responsibilities of a treasury function: cash and risk management (aka, you need to be able to move money from point A to point B safely). Eugene spends time explaining what both mean and best practices associated (tip: prioritize cash preservation, liquidity, then yield). As a part of that, he reflects on the SVB collapse a year ago, and how that galvanized a lot of companies to take a hard look at their cash and risk management processes.
The conversation pivots to Eugene’s focus areas and accomplishments at 6sense. He shares how he built the company’s first official treasury function, executed a senior secured credit facility, and designed an investment portfolio to optimize yield and reduce banking fees. As a part of this, he spends a few minutes on the macro environment, including the end of the ZIRP era and the influence of geopolitics. His primary point? Manage the risk you can control, and scenario plan for what you can’t.
This is a “don’t miss” episode for finance leaders looking to build effective cash and risk management strategies.
Key Quotes
- “Money needs to move around. A treasurer’s job is to make sure the cash is managed - that it comes in, out, on time, goes to the right place, has a place to stay, etc.”
- “Ultimately treasury and finance in general is a service organization. We serve our stakeholders internal and external. As these stakeholders move faster, we need to make sure we can respond to their needs”
- “Cash forecasting is crucial. There are a lot of levers that a company can use for capital preservation. You have to have a good plan, and yes there are some things you can’t control, but you can control your expenses.”
- “If the business says ‘hey, we’re going to launch a new product’, what does it mean for your working capital? Do we have the funding?”
Time Stamps
- (1:07) Eugene’s transition to treasury
- (15:09) Unique challenges in treasury functions
- (24:59) Cash management in a changing environment
- (31:38) Best practices for designing an investment portfolio
Links