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Corporate Treasury Management
Corporate Treasury Management
It is extremely
important to grasp the correct understanding of the concepts
and the meaning of the respective terms to pave the
foundation for the subsequent lessons.
What is Treasury?
The efficient management of the liquidity and
financial risk in the business i.e. treasury
management is best described as the proper
use and administration of the funds flow
through an organisation that results in the
maximum level of profitability within its risk
and return profile (which reflect the attitude
of the BOD- risk tolerance and goal)
P: impose control on the currency transaction can increase biz cost; E: economy indicator; S: consumer
behaviour; T: smoothen treasury management.
Investment decision
Financing decision
Dividend decision
how many awards should to given
Treasurers Role
3 level of strategy
Strategic level (set objective)
Tactical level (how to make this workable)
Operational level (implementation)
4 main functions
Funding management
Liquidity management
Currency management
Banking relationship management
Special case in CTM*
Strategic
Tactical
Operational
Fund management
Liquidity management
Currency management
Bank relationship management
Special case in CTM