Treasury management (or treasury operations) includes
management
Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business.
Management includes the activities ...
of an enterprise's holdings, with the ultimate goal of managing the firm's liquidity and mitigating its operational, financial and reputational risk. Treasury Management includes a firm's collections, disbursements, concentration, investment and funding activities. In larger firms, it may also include
financial risk management
Financial risk management is the practice of protecting Value (economics), economic value in a business, firm by using financial instruments to manage exposure to financial risk - principally operational risk, credit risk and market risk, with more ...
.
For non-banking entities, the terms ''Treasury Management'' and ''Cash Management'' are sometimes used interchangeably, while, in fact, the scope of treasury management is larger (and includes funding and investment activities mentioned above). In general, a company's treasury operations comes under the control of the CFO, Vice-President / Director of Finance or Treasurer, and is handled on a day-to-day basis by the organization's treasury staff, controller, or comptroller.
Most
bank
A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets.
Becau ...
s have whole
departments
Department may refer to:
* Departmentalization, division of a larger organization into parts with specific responsibility
Government and military
*Department (administrative division), a geographical and administrative division within a country, ...
devoted to treasury management and supporting their clients' needs in this area. Smaller banks are increasingly launching and/or expanding their treasury management functions and offerings, because of the market opportunity afforded by the recent economic environment (with banks of all sizes focusing on the clients they serve best), availability of highly seasoned treasury management professionals, access to industry standard, third-party technology providers' products and services tiered according to the needs of smaller clients, and investment in education and other best practices. A number of independent
treasury management systems (TMS) are available, allowing enterprises to conduct treasury management internally.
Bank Treasuries may, in turn, have the following departments:
* A
fixed income
Fixed income refers to any type of investment under which the borrower or issuer is obliged to make payments of a fixed amount on a fixed schedul