Treasury Management Flashcards
What are the key roles of the Treasury Department ? (7)
( associated set of responsibilities)
- Cash Management
- Working Capital Management
- Cash Forecasting & Liquidity Planning
- Managing Banking Relationships
- Managing Credit Rating Agency Relationships
- Credit Granting oversight
- Active involvement with Strategic Initiatives
What are the key functions of the Treasury Department ? (5)
(acts that should be carried out by)
- Develop Treasury Policies
- Establish a Treasury Management System
- Portfolio Management
- Identify Funding opportunities
- Treasury Risk Management
What is Working Capital Management ?
- manage diff between current assets and current liabilities
- ensure lowest possible cost of capital
- highest return on assets
What is Cash Management ?
- Invest idle cash
- Collect & manage cashflow
- Effective processes to invest cash that ensure smooth cashflows
- avoid insolvency
- managing for planned and unplanned expenditures
Cash forecasting
Using models to forecast cashflow
Liquidity Planning
ensure a company always remains solvent for the foreseeable future
Credit Rating Agengy relationships
Credit Granting overight
Know which customers pay and which dont
What are Treasury Policies ?
Policies are the tools used by the board to delegate Risk decisions in a controlled manner - FX Risk, Interest Rate Risk, surplus cash investments. Establish a framework to delegate the management of risk as per Board
Treasury Management System. What does it do ?
- payment processing
- payment fraud
- aggregate datasets
What is Portfolio Management ?
Balance liquidity and funding while minimise cost of capital and best return on investment
Identify Funding Opportunities
new opportunities as a result of FinTech
Treasury Priorities (4)
- Cash Forecasting
- Risk Management
- Cybersecurity
nis.gov
Improving Receivables
How ?
Improving Payables
How ?
