TREASURY MANAGEMENT

BY: ANJANA RAI

WHAT IS TREASURY

a place where stores of treasures are kept; the place of deposit, care, and disbursement of collected funds

Treasury and its responsibilities fall under the scope of the Chief Financial Officer

The CFO's responsibilities usually include capital management, risk management, strategic planning, investor relations and financial reporting.

The specific tasks of a typical treasury function include cash management, risk management, hedging and insurance management, accounts receivable management, accounts payable management, bank relations and investor relations.

CASH MANAGEMENT

Cash Management includes the control and care of the cash assets and liabilities of the organization. This will include the selection of banks and bank accounts, investment vehicles, investment brokers, methods of borrowing, cash management information systems, and the development and compliance with cash and investment policy and processes.

RISK MANAGEMENT

Risk Management includes customer credit management, vendor/contractor financial analysis, liability claims management, business disaster recovery, and employee benefits program risk.

INSURANCE MANAGEMENT

Insurance Management is the process of negotiation of insurance policies to mitigate the risks that the organization does not want to assume.

ACCOUNT RECEIVABLE MANAGEMENT

Accounts Receivable Management includes the control of cash receipt systems within the organization.

ACCOUNT PAYABLE MANAGENT

Accounts Payable Management includes the control of the cash disbursement process.

A successful treasury function has the same attributes as any other function within the organization that is considered successful. These qualities are:

• Teamwork • Respect of Organization • Forward Thinking • Global Thinking • Technologically Advanced • Customer Focused • Finance/Accounting Knowledge • Legal Knowledge • Reliability

THANK YOU