Corporate Treasury
Corporate treasury is a financial management concept that involves the proper oversight and management of an organization’s funds. It involves the efficient use of resources, minimizing risk and ensuring compliance with organizational policies and procedures. In addition to providing capital for operations, corporate treasury also helps ensure an organization’s financial stability.
The primary responsibilities of corporate treasury include:
– Cash Management: This includes managing cash receipts, disbursements, forecasting cash flows, setting up banking arrangements (including bank accounts and lines of credit), monitoring investments in money market instruments or other short-term assets ,and managing foreign exchange transactions.
– Risk Management: Corporate treasury is responsible for assessing risks associated with various types of investment activities such as interest rate risk, currency risk, counterparty credit risk and liquidity risk. They are also responsible for developing strategies to manage these risks appropriately through hedging or insurance products when applicable .
– Regulatory Compliance: Corporate treasurers must be aware of all relevant regulations in their industry so they can ensure compliance across all operations. This includes laws related to taxes (e.g., income tax withholding), anti-money laundering rules (AML) ,and anti bribery legislation .
– Investor Relations: Corporate treasurers are often involved in investor relations activities such as arranging debt financing or equity offerings .They may also provide guidance on dividend policy decisions or other shareholder matters .
– Capital Structuring : The corporate treasurer is typically responsible for structuring the company’s capital structure according to its strategic objectives while considering factors like available capital sources ,cash flow projections ,risk profile etc.. He/she will work closely with senior leadership including CFOs to develop optimal corporate funding strategies which involve analyzing different sources of finance ranging from borrowing against assets ,issuing debt securities /shares etc..
