Treasury management is also known as treasury operations comprises of management of an enterprise’s holdings. Its ultimate goal is to maximize the firm’s liquidity and lessen it’s operational, financial and reputational risk. It is fast emerging as a specialization in many companies. The accounting function has been given additional importance and thus delinked from the finance function. In order to manage successfully, a treasury manager should possess a good knowledge of capital markets, instruments and investment avenues, treasury and risk management, etc.

Functions of Treasury Management:

1. To maintain the liquidity of business: This is the main function of treasury management. Without proper liquidity, it is risky for businesses to operate smoothly. Cash flow analysis and working capital management are useful in treasury management.

2. Mergers and acquisitions: The department may advise on the company’s acquisition activities and may be called upon to integrate the treasury functions of an acquirer.

3. To Provide Quick Finance to Companies: The treasury department has to arrange timely finance for a company when it needs the money. For this, a good network in the financial market is required.

4. To Forecast Cash: Gather all the information from around the company to generate an ongoing cash estimate. This information may come from the accounting records, the budget, capital budget and even the CEO.

5. Working Capital Monitoring: Review the corporate policies related to working capital, and model their impact on cash flows.

6. To Grant credit: Issue credit to customers, which involves management of the policy under which credit terms are granted.

7. To Raise Funds: Regulating when additional cash is needed, and raise funds through the acquisition of debt, sale of stock, or changes in company policies that impact the amount of working capital required to run the business.

8. Credit rating agency relations: Keep any credit rating agencies informed of the company’s financial results and condition, if these agencies are providing ratings on the company’s marketable debt issuances.

9. Cash Concentration: Create a system for channelling cash into a concentrated investment account, from which cash can be most effectively invested. This may involve the use of notional pooling or cash sweeps.

10. Bank relations: Keep the company’s bankers apprised of the company’s financial condition and projections, as well as any forthcoming changes in its need for borrowed funds. The discussion may extend to the various services provided by the banks to the company, such as lockboxes, wire transfers, ACH payments, and so forth.

11. IT systems: The department maintains treasury workstations that provide it with information about cash holdings, projections, market conditions, and other information.

12. To Minimize Currency Risk: Treasury managers need to have up to date knowledge of the world currency market in order to minimize currency risk. They also analyze the reason of crisis in the currency market. Sometime this crisis will be benefited for them because they have to pay less to another country for getting their service at cheap rates.

Skills required:

Excellent Quantitative and number crunching skills, good knowledge of Financial & Forex products


Certified Treasury Manager, CA and CIMA, CFA

Expected Package :

4 lakh to 12 lakh

Top companies:

Many banks including ICICI Bank, HDFC, Deutsche Bank, HSBC, and MNCs