– Treasury Management – What?

Cash management includes the management of a company’s assets, cash and working capital, with the ultimate goal of managing the company’s liquidity and mitigating its operational, financial and reputational risks.

Treasury management provides greater understanding and control of complex funding, liquidity and risk management processes.

Until recently, the big banks dominated the provision of cash management products and services. However, larger companies are implementing in-house cash management functions, hiring treasury professionals, and using independent cash management systems (TMS) that allow companies to manage cash internally.

The terms cash management and cash management are sometimes used interchangeably, when in fact the scope of cash management is broader and also includes financing and investing activities.

Cash management functions:

  1. Asset management and working capital of a company (FUNDING)
  2. Management of the company’s liquidity (LIQUIDITY)
  3. Mitigation of its operational, financial and reputational risk (RISK)

The educational objectives of this capsule are:

  • Learn the meaning of cash management
  • Financial risk management
  • Finance management
  • Loans and investment management
  • Understand how the treasury function is organized
  • Learn about different cash management systems
  • Benefits of cash management