This is a YouTube video titled "From Treasury to M&A to Self-Employment with Johan Nystedt" containing a talk or interview featuring Johan Nystedt discussing enterprise risk management, its importance in treasury and finance, and how it integrates risk and uncertainty into business planning and decision-making. The content is focused on strategic business partnership and risk assessment in financial management.
Enterprise risk management truly is at the forefront of a lot of people's minds right now. And I think for treasury folks, I think enterprise risk management really is a great opportunity to be able to take something on that are truly going to bring them to the table where strategic decisions are being made at the company, where strategic plans are created. When you start out in finance, including treasury, some of the really important key aspects is to try to get to know the business. Because it's first when you get to know the business that you can become a business partner. And we talk about that a lot, about treasury becoming more and more a strategic partner to the business. So getting to know the business is important. Getting to know the people. People is important too. Especially to start out, you need to kind of cultivate internal relationships as well as external relationships. In its very simplest form, enterprise risk management is just to add the dimension of risk and uncertainty to the type of assessments or projections we tend to make. So, for example, if you are implementing a new system, a new treasury management system, erm, could be taking a look at, well, we're getting this new treasury management system together by being able to monitor and track cash much better, by being able to have better analytics about our debt. How did this allow us to take on, since we're reducing the risk now because we have more insight, cash and the capital structure through our new TMS system, you know, what type of risk reduction does that provide? Just to go from, you know, plans, for example, and if you say, okay, my budget for 2023 calls for me to make a profit $100 million, and then the next year, 24, 110. I mean, at the simplest level, what ERM does is to say, okay, got it, we think we're going to make 100 and then 110. But what are the potential outcomes, other outcomes behind that?
