Treasury Organisation

Question 1

7 functions of org treasury

Answer 1

1. Centralised or decentralised
2. Payments
3. Collections
4. Re-invoicing centre
5. Factoring centre
6. Inhouse bank
7. Shared service centre

Question 2

What is TS centralisation

Answer 2

Have tech, enterprise resource planning, TMS all inhouse.

Many different levels

Question 3

What influences centralisation decision x8

Answer 3

Company size
industry norms
CF nature
Geography
Business culture
Tech useage
Availibility
Control need

Question 4

7 Negatives of the decentralised treasury

Answer 4

No economies of scale
Duplication
Many processing
Cash management difficult
Control loss
Cost of visibility
Lack of control
Liquidity decreases

Question 5

5 negatives of the centralised T

Answer 5

Autonomy of individuals falls
Slower decision making
Need and increased communications - IT investment needed
Morale and interest falls

Question 6

3 options of structure

Answer 6

Central policy, local execution
Centralised execution
Regional execution, central policy

Question 7

Benefits of the regional treasury

Answer 7

Timezones
Local expertise
Tax
Staff costs
Same day value
FX markets
Pricing