Treasury Management – What?
The terms Treasury Management and Cash Management are sometimes used interchangeably, while, in fact, the scope of treasury management is larger and includes funding and investment activities as well. Learn all about Treasury Management here!
Treasury management includes management of an enterprise's holdings, cash and working capital, with the ultimate goal of managing the firm's liquidity and mitigating its operational, financial and reputational risk.
Treasury Management provides greater insight and control over complex processes for managing funding, liquidity, and risk.
Until recently, large banks had the stronghold on the provision of treasury management products and services. however, large corporations are increasingly building in-house treasury management functions hiring seasoned treasury management professionals and using independent treasury management systems (TMS) that allows enterprises to conduct treasury management internally.
The terms Treasury Management and Cash Management are sometimes used interchangeably, while, in fact, the scope of treasury management is larger and includes funding and investment activities as well.
Treasury Management Functions:
- Management of an enterprise's holdings and working capital (FUNDING)
- Management of firm's liquidity (LIQUIDITY)
- Mitigating its Operational, Financial and Reputational risk (RISK)
The learning objectives of this capsule are:
- Learn the meaning of Treasury Management
- Financial Risk Management
- Cash Management
- Loans and Investment Management
- Understand how treasury function is organized
- Learn about various Treasury Management Systems
- Benefits of Treasury Management
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Treasury Management - Benefits
Effectively using treasury management with cash management and trade finance products brings tangible benefits to both corporates and financial institutions. Let us discuss some tangible benefits of treasury function.
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Treasury Management - Functions
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The Cash Management component ensures that the enterprise has sufficient liquidity for payments that are due and to monitor payment flows. Learn how treasury plays an important role in cash management for the enterprise.
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