1.

state the objectives of risk management

The main objectives of risk management are to:

1. Identify and assess risks: The first step in risk management is to identify potential risks and assess
their potential impact on the organization. This involves evaluating the likelihood of the risk
occurring and the potential consequences if it does.
2. Mitigate risks: Once risks have been identified and assessed, the next step is to develop strategies
to mitigate or reduce the impact of the risks. This may involve implementing preventative
measures, transferring the risk to a third party, or accepting the risk.
3. Monitor and review risks: Risk management is an ongoing process, and risks must be continually
monitored and reviewed to ensure that the risk management strategies are effective and up to
date.
4. Improve decision making: By identifying and assessing risks, organizations can make more
informed decisions about their operations, including resource allocation, investment decisions,
and strategic planning.
5. Ensure regulatory compliance: Many industries and sectors are subject to regulatory
requirements and standards, and risk management is essential to ensure compliance with these
requirements.
6. Improve stakeholder confidence: Effective risk management can improve stakeholder confidence
in an organization's ability to manage risks and operate in a sustainable and responsible manner.

2. list the functions of treasury department

The Treasury department is responsible for managing an organization's financial resources and
ensuring the availability of funds when needed. Some of the key functions of a Treasury
department include:

1. Cash management: Managing the organization's cash flow and ensuring that sufficient funds are
available to meet its obligations.
2. Funding and financing: Identifying and securing funding sources for the organization's
operations and investment activities, including loans, bonds, and equity.
3. Risk management: Identifying and mitigating financial risks, such as interest rate and foreign
exchange risk, that could affect the organization's financial position.
4. Investment management: Managing the organization's investment portfolio to maximize returns
while minimizing risk.
5. Financial analysis and reporting: Providing financial analysis and reporting to support decision-
making and ensure compliance with regulatory requirements.
6. Relationship management: Building and maintaining relationships with banks, investors, and
other financial institutions to support the organization's financial objectives.
7. Treasury operations: Managing day-to-day treasury operations, such as cash disbursements,
receipts, and bank reconciliations.
8. Debt management: Developing and executing strategies for managing the organization's debt,
including refinancing and debt restructuring.
9. Liquidity management: Ensuring that the organization has sufficient liquidity to meet its short-
term and long-term financial obligations.
10. Strategic planning: Contributing to the development of the organization's overall financial
strategy and goals.
 4. briefly discuss about combined treasury management

Combined treasury management is the centralization of treasury activities across multiple

business units or subsidiaries of a company. It involves the consolidation of cash management,
investment management, and risk management functions into a single treasury unit that serves
the entire organization.

The main objective of combined treasury management is to optimize the use of financial
resources and minimize financial risk across the organization. By centralizing treasury activities,
companies can achieve economies of scale, reduce transaction costs, and gain greater visibility
and control over their cash and financial assets.

Some of the key benefits of combined treasury management include:

1. Improved cash management: Centralized treasury management enables companies to better

manage their cash positions, reduce idle balances, and optimize the use of available funds.
2. Enhanced risk management: By centralizing risk management activities, companies can identify
and mitigate financial risks more effectively and efficiently.
3. Improved financial planning: With greater visibility into cash flows and financial assets, companies
can develop more accurate and effective financial plans and forecasts.
4. Reduced costs: Consolidating treasury activities can result in cost savings through reduced
transaction costs, improved investment returns, and better use of financial resources.
5. Better compliance: Centralized treasury management can help companies comply with regulatory
requirements and standards by providing a centralized framework for financial reporting and risk
management.

In summary, combined treasury management can provide significant benefits for companies
seeking to optimize their use of financial resources and reduce financial risk across their
organization.

5.