Treasury Management

Treasury management refers to the management of a company’s financial resources, focusing on optimizing liquidity, managing cash flow, and controlling financial risks. It involves overseeing day-to-day cash flow, ensuring that the company has sufficient funds to meet its obligations, investing excess cash, and managing relationships with banks and financial institutions. Treasury management is critical for maintaining a company’s financial stability and supporting strategic growth initiatives.

Example

A company’s treasury department manages its daily cash flow by ensuring enough liquidity to pay suppliers, investing excess cash in short-term securities, and managing foreign exchange risk for international operations.