What is the Job Role of the Treasury?
The general objective of Treasury function in a company is to maintain liquidity in business, to invest surplus, and to manage cash forecasts. Maintaining liquidity means ensuring that the Company has enough cash available at all times to meet the needs of its primary business operations. Following are the broad areas which Treasury function takes care of:
- Cash Management and risk management- This includes cash forecasting, planning for funding, repatriating, investment, hedging, etc
- Foreign Exchange- includes managing the risk of exchange rate fluctuations
- Working Capital management- 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.
- Investments and fundings or Investment management- Three primary goals of the role are- maximum return on investment; matching the maturity dates of investments with a company’s projected cash requirement; and most importantly, not putting funds at risk.
- Financial Supply chain- includes smooth transitioning of funds through the company’s network
- Credit ratings and Bank relations