– Treasury Organization

Cash centralization continues to be a clear trend and most organizations prefer a centralized treasury function.

Treasury is primarily organized as a cost or service center and acts as a center of excellence in corporate finance.

Some common sub-functions are-

Company cash

which often serves as the face of the different businesses/P&Ls within the company.

  • Key responsibilities include transaction structuring and integration, hedging and counterparty funding, and treasury advisory.
  • Sometimes responsible for managing bank accounts, facilitating disbursements and managing cash.
  • Help with the temporary investment of the company’s excess cash.

Exhibition financing and management

which acts as the face of the market.

  • Key responsibilities include raising debt – short and long term and banking and securitization.
  • Manages external financing and debt and also helps manage the internal financing needs of various business units through intercompany loans and transfers.

Risk management

  • Centralization is underway, in particular risk and cash management with expanded responsibilities – examples include group payments and collections, group insurance and credit risk
  • The main responsibilities of this department include risk management, asset/liability management, interest rate and currency hedging
  • Asset and liability management by controlling interest rate and currency risks due to mismatches between assets and liabilities.

Capital & liquidity

  • Key responsibilities include managing rating agencies and regulatory relationships
  • Alongside liquidity and capital management
  • Capital management to ensure various legal entities can cover unexpected losses
  • Liquidity management by monitoring and managing the company’s liquidity profile

Investor & bank relations

– Banking relationship strategies have become more sophisticated and a specialized department is generally responsible for managing corporate communications.

  • Key responsibilities include relationship management, credit allocation, exposure and purchase management
  • Most organizations also have an enabling branch that is responsible for day-to-day operations, information technology, quality, business management, etc.