TREASURY MANAGEMENT providing financial leadership and insights to

support informed decision-making and drive

CHIEF FINANCIAL OFFICER (CFO)- highest-
long-term value creation for the organization.
ranking financial professional in an organization
and is responsible for the fiscal health of the FUNCTION OF A CONTROLLER
business.
WHAT IS CONTROLLER?
-plays a critical role in an
responsible for the internal financial
organization's leadership team and providing
management and reporting of the organization.
strategic guidance to ensure financial stability
and growth managing financial transactions,
ensuring the accuracy of financial records, and
FINANCIAL STRATEGY- developing and
overseeing the preparation of financial
executing financial strategies that align with the
statements
organization's overall goals and objectives.
supervises activities related to
-analyzing financial data, identifying
budgeting, internal controls, financial analysis,
trends, and making recommendations to
and audit management.
optimize financial performance
FINANCIAL REPORTING
FINANCIAL REPORTING- accurate and timely
financial reports are prepared in accordance - financial statements, including
with regulatory requirements balance sheets, income statements, and cash
flow statements, ensuring accuracy and
-stakeholders, including investors,
compliance with accounting standards.
lenders, and the board of directors.
INTERNAL CONTROLS- safeguard assets, ensure
RISK MANAGEMENT- manages financial risks
the accuracy of financial records, and prevent
that could impact the organization's stability
fraud or errors.
and profitability
BUDGETING AND FORECASTING- helps develop
-market conditions, credit, liquidity, and
budgets and forecasts, working closely with
operational issues, and implementing strategies
department heads to ensure that financial plans
to mitigate them.
align with strategic objectives.
TREASURY MANAGEMENT- organization's cash
FINANCIAL ANALYSIS- identify trends, assess
flow, liquidity, and working capital to ensure
performance, and provide insights to support
sufficient funds are available to meet
decision-making by management.
operational needs and financial obligations.
COMPLIANCE- accounting principles, tax
-banking relationships, optimizing cash
regulations, and other financial reporting
balances, and implementing cash management
requirements imposed by regulatory bodies.
strategies
AUDIT MANAGEMENT- to facilitate the audit
INVESTOR RELATIONS- serves as a key liaison
process and address any findings or
between the organization and its investors,
recommendations.
providing financial updates, responding to
inquiries, and participating in investor meetings FUNCTION OF A TREASURER
and conferences.
TREASURER- responsible for managing the
organization's finances, cash flow, investments,
and banking relationships.
- include managing liquidity, optimizing
cash balances, investing excess cash, and
overseeing banking and financing activities.
- financial risks, such as interest rate
risk and currency risk, and makes decisions
regarding capital structure, capital raising
activities, and dividend policies.
CASH MANAGEMENT- cash flow, ensuring that
there is sufficient liquidity to meet short-term
obligations and optimizing cash balances
BANKING AND FINANCING- financing
arrangements, including lines of credit, loans,
and other forms of debt or equity financing.
INVESTMENT MANAGEMENT- managing the
organization's investment portfolio, making
decisions about asset allocation
RISK MANAGEMENT- Interest rate risk,
currency risk, and liquidity risk, implementing
strategies to mitigate exposure to adverse
market conditions
CAPITAL STRUCTURE- evaluates the
organization's capital structure and makes
recommendations regarding capital raising
activities
TREASURY OPERATIONS- including cash
disbursements, collections, and treasury
systems and processes.
COMPLIANCE AND REPORTING- compliance
with financial regulations and reporting
requirements related to treasury activities,
including regulatory filings and disclosures
RESPONSIBILITIES OF A TREASURER, FINANCIAL
SYSTEM AND FINANCIAL MARKETS
 TREASURER- play a crucial role in
ensuring the long-term financial
stability and success of the business.
 CASH MANAGEMENT- task of managing
the institution's global cash flows
 COLLATERAL MANAGEMENT-
eliminating unnecessary credit risk
between counterparties
 ASSET MANAGEMENT- task of having
the right, actual and regulatory liquidity
 FUNDING- always having enough cash
available for the institution
 CAPITAL MANAGEMENT- task of
always having sufficient capital available
to cover internal - and regulatory
requirements
o RESPONSIBILITIES OF A
TREASURER
 Perform risk management (liquidity,
interest rates, ventures etc.)
 Assume responsibility for cash
management procedures
 Manage the company’s investment
activity and make decisions
 Assist in the development of
financing strategies
 Provide advice in matters of corporate
finance
 Prepare budgets and monitor
expenditures
 Implement relevant legislation and
policies
 Submit reports of present financial
situation and forecasting
o ROLE OF THE TREASURER
 General financial oversight
 Funding, fundraising and sales
 Financial planning and budgeting
 Financial reporting
 Banking, book keeping and record
keeping
 Control of fixed assets and stock
 FINANCIAL MARKETS- refer broadly to
any marketplace where securities
trading occurs
-may include assets or securities
that are either listed on regulated
exchanges or trade
-economic disruption, including
recession and rising unemployment
 STOCK MARKETS- venues where
companies list their shares, which are
bought and sold by traders and
investors
 OVER-THE-COUNTER MARKETS-
decentralized market—meaning it does
not have physical locations, and trading
is conducted electronically
 BOND MARKETS- security in which an
investor loans money for a defined
period at a pre-established interest rate
 MONEY MARKETS- trade in products
with highly liquid short-term maturities
 DERIVATIVES MARKETS- contract
between two or more parties whose
value is based on an agreed-upon
underlying financial asset
 FOREX MARKET- where participants can
buy, sell, hedge, and speculate on the
exchange rates between currency pairs
 COMMODITIES MARKETS- venues
where producers and consumers meet
to exchange
 CRYPTOCURRENCT MARKETS-
exchanges host digital wallets for
traders to swap one cryptocurrency
 FINANCIAL SYSTEM- is a set of
institutions, such as banks, insurance
companies, and stock exchanges, that
permit the exchange of funds
 CONSTITUENTS OF FINANCIAL SYSTEM
 FINANCIAL SYSTEM- complex network
of institutions, markets, and
intermediaries that facilitate the flow of
funds between savers and borrowers.
 Financial Institutions- entities that
provide financial services, such as
banks, credit unions, insurance
companies, investment banks, and
pension funds
o Banks- Commercial banks,
savings banks, and credit unions
accept deposits and provide
loans and other financial
services.
o Non-Banking Financial
Institutions (NBFI)- include
insurance companies, pension
funds, mutual funds, and other
financial intermediaries
o Central banks- , such as the
Federal Reserve in the United
States or the European Central
Bank, play a pivotal role in
monetary policy and financial
stability.

 Financial Markets- are platforms where
individuals, businesses, and
governments buy and sell financial
assets
o Money Market: Deals with
short-term debt instruments
and securities.
o Capital Market: Deals with
long-term securities, such as
stocks and bonds.
o Derivatives Market: Involves
financial contracts whose value
is derived from an underlying
asset or index.
 Financial Instruments- instruments are
monetary contracts that can be traded.
Financial instruments include stocks,
bonds, options, futures contracts,
mortgages, and derivatives
o Equities: Represent ownership
in a company and include
stocks.
o Debt Instruments: Include
bonds and other fixed-income
securities representing loans.
o Derivatives: Include options,
futures, and swaps.
 Financial Services- services offered by
financial institutions, such as loans,
deposits, payment services, investment
services, insurance services
o Investment Banking: Assists
companies in raising capital
through issuing stocks and
bonds.
o Asset Management: Manages
investment portfolios on behalf
of individuals and institutions.
o Insurance: Provides protection
against various risks.
o Financial Advisory Services:
Includes financial planning,
wealth management, and
consultancy.
 Regulatory Authorities- Governmental
or independent regulatory bodies
regulate all financial systems
 Payment and Settlement Systems-
enable fund transfer between
individuals, businesses, and financial
institutions
 Financial Infrastructure- technological
system that supports the financial
system’s smooth functioning
o Bank branches and physical
payment processing systems.
o ATM networks.
o SWIFT (Society for Worldwide
Interbank Financial
Telecommunication) network
for global payment processing.
o Credit card processing
networks.
 Financial Intermediaries- Entities that
act as intermediaries between savers
and borrowers, facilitating the flow of
funds.
o commercial bank
o investment bank
o mutual fund
o pension fund
 Investors and Savers- Individuals,
corporations, and governments that
provide funds by saving or investing in
various financial instrument

o Savers play the role of building
the reserve energy-reserve
money of a country.
o Investors play the role of
channelizing capital into risky
new projects that will increase
the general well being of
everyone