PA 236

Revenue and Treasury

Management
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R E V E N U E / T R E A S U R Y A D M I N I S T R AT I V E A G E N C I E S ; T H E I R
M A N D AT E , F U N C T I O N S A N D D U T I E S
L E GAL B AS I S OF R E V E N U E AN D T R E AS U RY M AN AGE M E N T
R O L E S A N D O B J E C T I V E S O F T H E O P E R AT I O N O F A
T R E AS U RY

F E B R U A RY 1 4 , 2 0 1 7
O WAY, M A R J O R I E B .
Department of Finance

2
 Department of Finance
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The Department of Finance(DOF) is the

governments steward of sound fiscal policy.

It formulates revenue policies that will

ensure funding of critical government
programs that promote welfare among our
people and accelerate economic growth and
stability.
 Department of Finance
4

The Department envisions that the

effective and efficient pursuit of the
critical tasks under its wings revenue
generation, resource mobilization, debt
management and financial market
development shall provide the solid
foundation for a Philippine economy
that is one of the most active and
dynamic in the world.
 Department of Finance-Legal Basis
5

Biak-na-Bato Constitution (November 1, 1897)

created under the First Philippine Republic
headedby General Emilio Aguinaldo, a Supreme
Council one of whose members was the Secretary of
theTreasury who was, before that, the Director of
Finance.
Civil Service Act of 1901 (September 1, 1901)
formally organized the Department of Finance and
Justice.
Reorganization Act No. 2666 (November 18, 1916)
divided the Department of Finance and Justice into
two independent departments.
 Department of Finance-Legal Basis
6

Presidential Decree No. 1397 (June 2, 1978)

transformed the Department of Finance (DOF) into
the Ministry of Finance (MOF) under a
parliamentary form of government.
Executive Order No. 127 (January 30, 1987) and
No. 127-A (July 22, 1987) reorganized the MOF.
Executive Order No. 292 (July 25, 1987), the
Administrative Code of 1987, reverted the MOF
into the DOF, providing for its powers and
functions and organizational structure.
 Department of Finance-Mandate
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Formulation, institutionalization and administration of

fiscal policies in coordination with other concerned
subdivisions, agencies and instrumentalities of the
government;
Generation and management of the financial resources
of government;
supervision of the revenue operations of all local
government units;
Review, approval and management of all public sector
debt, domestic or foreign; and
Rationalization, privatization and public accountability of
corporations and assets owned, controlled or acquired by
the government.
 Department of Finance-Functions
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1. Formulate goals, action plans and strategies

for the Governments resource mobilization effort;
2. Formulate, institutionalize and administer fiscal
and tax policies;
3. Supervise, direct and control the collection of
government revenues;
4. Act as custodian of, and manage all financial
resources of Government
5. Manage public debt;
 Department of Finance-Functions
9

6. Review and coordinate policies, plans and

programs of GOCCs;
7. Monitor and support the implementation of
policies and measures on local revenue
administration;
8. Coordinate with other government agencies on
matters concerning fiscal, monetary, trade and other
economic policies
9. Investigate and arrest illegal activities such as
smuggling, dumping, illegal logging, etc. affecting
national economic interest
 Offices under the Department of Finance
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1. Bureau of Internal Revenue (BIR)

2. Bureau of Customs (BoC)
3. Bureau of Treasury (BTr)
4. Bureau of Local Government Finance (BLGF)
5. Privatization and Management Office (PMO)
6. Insurance Commission (IC)
7. National Tax Research Center (NTRC)
8. Central Board of Assessment Appeal (CBAA)
9. Philippine Deposit Insurance Corporation (PDIC)
10. Philippine Export-Import Credit Agency
(PHILEXIM)
11. Cooperative Development Authority (CDA)
Bureau of Internal Revenue (BIR)

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 Bureau of Internal Revenue-Legal Basis
12

Reorganization Act No. 1189 (July 2, 1904) created the Bureau

of Internal Revenue (BIR), formally organized and made
operational under the Secretary of Finance.
Executive Order No. 94 (October 1, 1947) re-established the
BIR under the new Republic of the Philippines apart from
Customs
Executive Order No. 392 (January 1, 1951) reorganized the
BIR with the creation of an Assessment Department under which
a Withholding Tax Unit was placed when the unit was created
later.
Republic Act No. 233 (June 19, 1959), or the Rewards Law,
provided incentives to informers on tax evaders.
Republic Act No. 9335 (January 25, 2005), otherwise known as
the Attrition Act of 2005, provided for a system of rewards and
sanctions to enhance revenue performance through the creation
of a Rewards and Incentives Fund and a Revenue Performance
Evaluation Board within the BIR and the Bureau of Customs.
 Bureau of Internal Revenue-Mandate
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Assessment and collection of all national internal

revenue taxes, fees and charges.
Enforcement of all forfeitures, penalties, fines and
execution of judgments in all cases decided in its
favor by the Court of Tax Appeals and the ordinary
courts
Administer supervisory and police powers
conferred by National Internal Revenue Code as
amended by R.A. 8424 or other laws.
 Bureau of Internal Revenue-Functions
14

1. Assessment and collection of all internal revenue

taxes, fees and charges; and
2. Enforcement of all forfeitures, penalties, and
fines connected therewith, including the
execution of judgments in all cases decided in its
favor by the Court of Tax Appeals and the
ordinary courts;
3. It shall also give effect to and administer
supervisory and police powers conferred to it by
the National Internal Revenue Code and special
laws.
Bureau of Customs (BoC)

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 Bureau of Customs- Legal Basis
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Act No. 355 (February 6, 1902), The Philippine Customs

Administrative Act, created the customs service of the Philippines to
collect all revenues warranted by law.
Executive Order No. 127 (January 30, 1987) reorganized/expanded
the organization of the Bureau of Customs (BOC)-Central Office by
providing units to monitor and coordinate assessment and operations of
the Bureau.
Executive Order No. 463 (January 9, 1998) created the Management
Information System and Technology Group (MISTG) to ensure the
implementation of the BOCs computerization program.
Republic Act No. 9335 (January 25, 2005), otherwise known as the
Attrition Act of 2005, provided for a system of rewards and sanctions
to enhance revenue performance through the creation of a Rewards
and Incentives Fund and a Revenue Performance Evaluation Board
within the Bureau of Internal Revenue and the BOC.
 Bureau of Customs- Mandate
17

Prevent smuggling and other frauds

Control vessels/aircrafts doing foreign
trade
Enforce tariff and customs laws
Control the handling of foreign mails for
revenues and prevention purposes
Control import and export cargoes
Jurisdiction over forfeiture and seizure
cases
 Bureau of Customs- Functions
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A. The assessment and collection of the lawful

revenues from imported articles and all other dues,
fees, charges, fines and penalties accruing under
the tariff and customs laws
B. The prevention and suppression of smuggling and
other frauds upon the Customs;
C. The supervision and control over the entrance and
clearance of vessels and aircraft engaged in
foreign commerce;
D. The enforcement of the tariff and customs laws and
all other laws, rules and regulations relating to the
tariff and customs administration;
 Bureau of Customs- Functions
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E. The supervision and control over the handling of

foreign mails arriving in the Philippines, for the
purpose of the collection of the lawful duty on the
dutiable articles thus imported and the prevention
of smuggling through the medium of such mails;
F. Supervise and control all import and export
cargoes, landed or stored in piers, airports,
terminal facilities, including container yards and
freight stations, for the protection of government
revenue
G. Exercise exclusive original jurisdiction over seizure
and forfeiture cases under the tariff and customs
laws.
Bureau of Treasury (BTr)

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 Bureau of Treasury- Legal Basis
21

Aguinaldo Act of 1897 (November 2, 1897), appointing the

nations first National Treasurer, created the Bureau of Treasury
whose principal functions were the imposition and collection of
taxes.
Philippine Commission Act (October 3, 1900) created the
Bureau of Insular Treasury tasked to receive and disburse public
funds and to account for same, and provided for the supervision of
the countrys banks.
Act No. 222 (September 6, 1901) placed the Bureau of Insular
Treasury under the executive control of the Department of
Finance and Justice.
Act No. 1407 (October 26, 1905), as amended by Act No. 1679,
renamed the Bureau of Insular Treasury to Bureau of the Treasury
(BTr), given the additional task of coinage and currency
supervision.
 Bureau of Treasury- Mandate
22

Assist in formulation of policies on

borrowing, investment and capital market
development;
Formulate adequate operational guidelines
for fiscal and financial policies;
Assist in preparation by government
agencies concerned of an annual program,
for revenue and expenditure targets,
borrowing levels and cash balances of
National Government (NG);
 Bureau of Treasury- Mandate
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Maintain books of accounts of the NG cash

transactions;
Manage cash resources of NG, collect
advances made, and guarantee and forward
cover fees due NG;
Control and service NG public debt, both
foreign and domestic;
Issue, service, redeem government
securities for account of NG as may be
authorized by the President pursuant to law
 Bureau of Treasury- Duties and Functions
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A. Directs the formulation of policies on

borrowing, investment and capital market
development;
B. The formulation of adequate operations
guidelines for fiscal and financial policies;
C. The maintenance of books of accounts of
NG cash transactions; the management of
NG cash resources,
D. The collection of advances made by NG
and guarantee forward cover fees due NG,
 Bureau of Treasury- Duties and Functions
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E. The control and servicing of its public debt,

both foreign or domestic;
F. The issuance, servicing and redemption of
government securities for the account of
NG;
G. The administration of the Securities
Stabilization Fund; the bonding of all
accountable public officials and employees;
Bureau of Local Government Finance (BLGF)

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 Bureau of Local Government Finance- Legal Basis
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Executive Order No. 127 (January 30, 1987)

reorganized the Department of Finance (DOF),
elevating thereby the Office of Local Government
Finance to a Bureau.

Executive Order No. 292 (July 25, 1987), or the

Administrative Code of 1987, further strengthened
the operating bureaus under the DOF, including that
of the Bureau of Local Governance Finance.
 Bureau of Local Government Finance- Mandate
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(Section 43 of Executive Order No. 127, as amended, other pertinent

Assist
provisions of Local Government Code of 1991, BLGF shall: )
in formulation and implementation of policies
on local government revenue administration
and fund management;
Assist LGU in development and
implementation of Real Property Tax
Administration (RPTA) projects
 Bureau of Local Government Finance- Functions
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A. Assist in the formulation and

implementation of policies on local
government revenue administration and
fund management;
B. Exercise administrative, technical
supervision and coordination over the
treasury and assessment operation of local
government;
C. Develop or implement plans and programs
for the improvement of resource
management system, collection
enforcement mechanisms and credit
utilization schemes at the local levels;
 Bureau of Local Government Finance- Functions
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D. Provide consultative services and technical

assistance to the local government and the
general public on local taxation, real property
assessment and other related matters;
E. Exercise line supervision over its Regional
Offices and the local treasury and assessment
and other related matters;
F. Perform such other tasks or functions as maybe
assigned by the Secretary of Finance or
Undersecretary for Domestic Operations.
Privatization and Management Office (PMO)

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Privatization and Management Office-Legal Basis
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Executive Order No. 323 (December 6, 2000)

created the Privatization Council (PrC) and
Privatization and Management Office (PMO) to
promote an orderly, coordinated, and efficient
privatization of government corporations, assets,
activities and idle properties.

Executive Order No. 47 (November 17, 2005)

directed the merger of the Board of Liquidators
(BoL)with the PMO, the latter as the surviving entity
to undertake the functions of BoL under Executive
Order No. 371, series 1950, as amended.
 Privatization and Management Office-Mandate
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Implement the marketing/disposition program for

government corporations, assets and other
properties (E.O. 323).

Dispose assets and/or rights, mandated under E.O.

372, transferred to the National Government and
held in trust by the PMO (E.O. 471).
 Privatization and Management Office-Functions
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A. It is the marketing arm of the government with

respect to transferred assets, government
corporations and other properties assigned to it
by the Privatization Council (PrC) for disposition,
pursuant to Executive Order (EO) No.323 (2000)
B. It is the disposition entity of properties transferred
to the Republic under the Philippine Property Act
of 1946, Republic Act No.8, and EO99 (1947)
,pursuant to EO471 (2005).
Insurance Commission (IC)

35
 Insurance Commission-Legal Basis
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Republic Act No. 275 (January 3, 1949) created

the Office of the Insurance Commissioner (from the
Bureau of Banking) to assess insurance companies,
insurance agents, and insurance-related matters.

Presidential Decree No. 63 (November 20, 1972)

amended certain sections of the Insurance
Commission Act and provided that the Office of the
Insurance Commissioner be known as the Insurance
Commission.
 Insurance Commission- Mandate
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To promote growth and financial stability of

insurance companies.
To professionalize insurance services and
develop insurance consciousness among
the general populace
To establish a sound national insurance
market, and
To safeguard the rights and interest of the
insuring people.
 Insurance Commission- Functions
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A. Promulgation and implementation of policies, rules and

regulations governing the operations of entities engaged in
insurance and pre-need activities as well as with benevolent
features.
B. Licensing of insurance, reinsurance companies, its
intermediaries, mutual benefit associations, trusts for
charitable uses and pre-need companies and its
intermediaries.
C. Conducting insurance agent's examinations, as well as
processing of reinsurance treaties and request for
investments of insurance companies.
D. Examination/verification of the financial condition and
methods of doing business of entities engaged in insurance
business, pre-need, mutual benefit associations, and trusts
for charitable uses;
 Insurance Commission- Functions
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E. Evaluation and preparation of statistical reports,

studies, researches, annual reports, and position
papers relative to insurance and pre-need matters.
F. Review of premium rates imposed by life and non-life
companies, mutual benefit associations; statistical
reports of adjusters to determine compliance with
established standards.
G. Adjudication of claims and complaints involving loss,
damage or liability incurred by an insurer under any
kind of policy or contract of insurance or suretyship;
H. Review and approval of all life and non-life policies and
pre-need plans before sale to prospective clients.
National Tax Research Center (NTRC)

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 National Tax Research Legal Basis
41

Republic Act No. 2211 (May 15, 1959) created the

Joint Legislative Executive Tax Commission
(JLETC), institutionalizing tax research in the
Philippines.
Presidential Decree No. 74 (December 6, 1972)
organized the National Tax Research Center
(NTRC)(from the conversion of the JLETCs
Technical Staff) as a single-headed agency under
the administrative supervision of the National
Economic and Development Authority (NEDA).
Executive Order No. 127 (January 30, 1987)
transferred the NTRC to the Department of Finance
as an attached agency.
 National Tax Research - Mandate
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To promote a tax system that will ensure a fair

distribution of the tax burden among the Filipino
taxpayers.
To recommend necessary improvements in the tax
system by conducting continuing quality research
on taxation.
To provide responsive staff support to fiscal policy
makers.
To provide opportunities for professional growth
and promote the well-being of our personnel.
 National Tax Research - Functions
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A. To undertake a comprehensive study of the need for

additional revenue for accelerated national
development and resources from which this might most
equitably be derived.
B. To re-examine the existing tax system and tax policy
structure.
C. To conduct researches on taxation for the purpose of
improving the tax system and tax policy
D. To pass upon all tax measures and revenue proposals.
E. To command such reform and revisions as may be
necessary to improve revenue collection and to
formulate sound tax policy and a more efficient tax
structure.
Central Board of Assessment Appeal (CBAA)

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 Central Board of Assessment Appeal- Legal
Basis
45

Presidential Decree No. 25 (s.1972), as amended, created a

Central Board of Tax Appeals, the forerunner of the Central
Board of Assessment Appeals, composed of the Secretary of
Finance, as Chairman; and the Secretaries of Justice and of
Local Government and Community Development, as members.
Presidential Decree No. 464 (June 1, 1974), or the Real
Property Tax Code, authorized the Central Board of Assessment
Appeals (CBAA) with the same composition, powers and duties
of what used to be the Central Board of Tax Appeals.
Republic Act No. 7160 (October 10,1991), otherwise known as
the Local Government Code of 1991,transformed the CBAA into
an independent collegial appellate quasi-judicial body which
decides on appeals before it, actions taken by the Local Board of
Assessment Appeals of municipalities and cities of Metro Manila
and provincial and city Local Board of Assessment Appeals
nationwide.
 Central Board of Assessment Appeal- Mandate
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To warrant the observance of the due

process of law clause mandated by the
Constitution in the assessment and
collection of real property taxes by the
government
To ensure that the taxpayers are given
the opportunity to be heard
 Central Board of Assessment Appeal- Functions
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Primary function
A. As embodied in Republic Act No. 7160, the law
creating the Central Board of Assessment Appeals, this
office has the power to hear and decide appeals from
the decision of Municipal Board of Assessment Appeals
in Metro Manila and the City and Provincial Board of
Assessment Appeals nationwide, relative to the
following issues;
B. All real property tax assessment cases (Sec. 230, RA
7160); RA 7160 Local Government Code of 1991;
C. All protests on al realty tax payments under protest
(Sec. 252, RA 7160); and
D. All claims from realty tax refund or credit (Sec. 253, RA
7160).
E. Protest vs. special levy
 Central Board of Assessment Appeal- Functions
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Secondary function
A. Supervision of all Local Boards of Assessment
Appeals;
B. Conducts ocular inspection of real property subject of
appeal;
C. Conducts training programs for all Local Boards of
Assessment Appeals designed to enhance their
knowledge on real property assessment and collection
and the appeal process;
D. Conducts in-service training programs for its personnel;
E. Provides coordination and consultative services to the
Local Boards of Assessment Appeals;
 Central Board of Assessment Appeal- Functions
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F. Renders advisory services to assessors, legal

practitioners, other government agencies ad the
general public on matters of CBAA procedures,
decisions, jurisprudence and realty assessments;
G. Renders collaborative assistance to the Solicitor-
General when its decisions are on certiorari before the
Supreme Court;
H. Maintains and preserves records of CBAA decisions
and rulings constituting assessment jurisprudence and
disseminates the same to assessors, treasurers, Local
Boards of Assessment Appeals; real property owners,
government agencies and general public; and
I. Conducts real property tax assessment, collection and
appeals information dissemination campaign.
Philippine Deposit of Insurance (PDIC)

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Philippine Deposit of Insurance- Legal Basis
51

Republic Act 3591 created

Philippine Deposit Insurance
Corporation
 Philippine Deposit of Insurance- Mandate
52

Deposit Insurance
Examination and Resolution
Liquidation
Philippine Deposit of Insurance- Functions
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A. Promote and safeguard the

interests of the depositing public
through the provision of insurance
coverage on all insured deposits.

A. Strengthen the mandatory deposit

insurance coverage system
Philippine Export-Import Credit Agency (PHILEXIM)

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Philippine Export-Import Credit Agency- Legal Basis
55

Executive Order No. 85 (March 18,2002)

Republic Act No. 8494 (February 12,1998),An act
reorganizing and renaming PHILGUARANTEE as the
Trade and Investment Development Corporation of the
Philippines (TIDCORP) and expanded its functions and
client base.
Presidential Decree No. 1080 (January
31,1997),Amended Presidential Decree No. 550 creating
the Philippine Foreign Loan Guarantee Corporation,
which created Philippine Export and Foreign Loan
Guarantee Corporation (PHILGUARANTEE
Philippine Export-Import Credit Agency- Mandate
56

Mandated to encourage and promote the

expansion of Philippine exports and to
establish a strong and credible export credit
institution which shall be dedicated to the
provision of export financing facilities and
services to support the countrys export
sector.
 Philippine Export-Import Credit Agency- Functions
57

A. To promote and facilitate the entry of foreign loans into the

country for development purposes having special regard to
the needs of export-oriented industries, industries registered
with the Board of Investments, public utilities, and industries
the promotion of which is encouraged by government policy;
B. To guarantee loans granted by Philippine banking and
financial institutions to qualified exporters, producers of
export products, and contractors with approved service
contracts abroad;
C. To facilitate and assist in the implementation of approved
service contracts abroad entered into by Philippine entities,
enterprises, or corporations with foreign exchange earning
potentials, by providing counter-guarantees to Philippine
banks and financial institutions issuing stand-by Letters of
Credit or of Letters of Guarantee for the performance of said
service contracts;
Philippine Export-Import Credit Agency- Functions
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D. To meet requests from domestic entities, enterprises, and

corporations to assist them in the coordination of their
development and expansion plans with a view to achieving
better utilization of their resources;
E. To provide insurance cover, credit and appropriate services
to facilitate the export of Philippine goods or services by any
entity, enterprise or corporation organized or licensed to
engage in business in the Philippines;
F. To provide direct credits and loans to exporters of Philippine
goods and services;
G. To provide technical assistance in the preparation, financing,
execution of development or expansion programs, including
the formulation of specific project proposals.
H. To undertake such actions that is consistent with the primary
purposes of the corporation.
Cooperative Development Authority (CDA)

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Cooperative Development Authority-Legal Basis
60

The Philippine Constitution of 1987 provides for

Congress to create an Agency that will promote the
viability and growth of cooperatives as instruments
for social justice and economic development.
Republic Act No. 6939 (March 10, 1990) created
the Cooperative Development Authority (CDA) under
the Office of the President (OP) to unify government
efforts in the promotion and development of
cooperatives and rationalize rules and policies on
cooperative registration under one agency.
Executive Order No. 332 (July 16, 2004)
transferred the CDA from OP to the Department of
Finance.
Cooperative Development Authority- Mandate
61

Promote the viability and growth of cooperatives as

instruments of equity, social justice and economic
development
Cooperative Development Authority-Functions
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A. Formulate, adopt and implement integrated and

comprehensive plans and programs on cooperative
development consistent with the national policy on
cooperatives and the overall socio-economic
development plans of the Government;
B. Develop and conduct management and training
programs upon request of cooperatives that will provide
members of cooperatives with the entrepreneurial
capabilities, managerial expertise, and technical skills
required for the efficient operation of their cooperatives
and inculcate in them the true spirit of cooperativism
and provide, when necessary, technical and
professional assistance to ensure the viability and
growth of cooperatives with special concern for
agrarian reform, fishery and economically depressed
sectors;
Cooperative Development Authority-Functions
63

C. Support the voluntary organization and consensual

development of activities that promote cooperative
movements and provide assistance towards
upgrading managerial and technical expertise upon
request of the cooperatives concerned;
D. Coordinate the efforts of the local government units
and the private sector in the promotion,
organization and development of cooperatives;
Cooperative Development Authority-Functions
64

E. Register all cooperatives, their federations and unions,

including their divisions, consolidations, dissolutions or
liquidation. It shall also register the transfer of all or
substantially all of their assets and liabilities and such
other matters as may be required by the authority;
F. Require all cooperatives, their federations and unions
to submit their annual financial statements, duly
audited by certified public accountants, and general
information sheets;
G. Order the cancellation after due notice and hearing of
the cooperatives certificate of registration for non-
compliance with administrative requirements and in
case of voluntary dissolution;
Cooperative Development Authority-Functions
65

I. Assist cooperatives in arranging for financial and

other forms of assistance under such terms and
conditions as are calculated to strengthen their
viability and autonomy;
J. Establish extension offices as may be necessary
and financially viable to implement this Act. Initially,
their shall be extension offices in the Cities of
Dagupan, Manila, Naga, Iloilo, Cebu, Cagayan de
Oro and Davao;
K. Impose and collect reasonable fees and charges in
connection with registration of cooperatives;
Cooperative Development Authority-Functions
66

L. Administer all grants and donations coursed

through the Government for cooperative
development, without prejudice to the right of
cooperatives to directly receive and administer
such grants and donations upon agreement with
the grantors and donor thereof;
M. Formulate and adopt continuing policy initiatives
consultations with the cooperative sector through
public hearing;
N. Adopt rules and regulations for the conduct of its
internal operations;
Cooperative Development Authority-Functions
67

O. Submit an annual report to the President and Congress

on the state of the cooperative movement; and
P. Exercise such other functions as may be necessary to
implement the provisions of cooperative laws and, in
the performance thereof, the Authority may summarily
punish for direct contempt any person guilty of
misconduct in the presence of the Authority which
seriously interrupts any hearing or inquiry with a fine of
not more than Five hundred pesos (P500.00) or
imprisonment of not more than ten (10) days, or both.
Acts consisting indirect contempt as defined under
Rule 71 of the Rules of Court shall be punished in
accordance with the said rule.
Roles and Objectives of the
Operation of Treasury
68
 Roles and Objectives of the Operation of
Treasury
69

1. Cash Forecasting
This is the beginning of all other roles carried on the
operation of a treasury department. The forecast and
all its components are needed to:
Determine if more cash is needed.
Plan for investment purposes
Plan its hedging operations by using the information
at the individual currency level.
 Roles and Objectives of the Operation of
Treasury
70

2. Working Capital Management

Major usage of organizations cash is in the working

capital area. Working capital is a key component of
cash forecasting. It involves changes in the levels of
current assets and current liabilities in response to a
companys general level of sales. The treasurer should
be aware of working capital levels and trends, and
advise management on the impact of proposed policy
changes on working capital levels.
 Roles and Objectives of the Operation of
Treasury
71

3. Cash Management

Combining information in the cash forecast and

working capital management activities enables you to
ensure that sufficient cash is available for operational
needs.
 Roles and Objectives of the Operation of
Treasury
72

4. Risk Management

Risk management is the process of identification,

analysis and acceptance or mitigation of uncertainty in
investment decisions. Essentially, risk management
occurs any time an investor or fund manager analyzes
and attempts to quantify the potential for losses in an
investment and then takes the appropriate action (or
inaction) given his investment objectives and risk
tolerance.
 73

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