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-
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.
- 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.