What Is Treasury Management?

Well from the name, you may have guessed the broad theme of what treasury management is – the management of a company’s money. However, that’s not quite as simple as you might imagine.

There are two distinct parts of treasury management – one is making sure that the cash flow is well maintained and that the company are not sinking into financial turmoil. The other is the creation of the policies that ensure the company’s risk strategy is one that is sustainable and suitable for its needs.

Ultimately therefore, treasury management includes aspects of many different areas of the finance industry, from understanding risk management to bookkeeping and accountancy. Many big companies have entire departments devoted to treasury management, and especially in the banking world, treasury management is key to financial success.