This lesson explores the structure, functions, and control environment of the treasury function.

7.1 The Treasury Function
The treasury function manages liquidity, funding, financial risk, and banking relationships. It can be centralised or decentralised and must align its structure with the organisation’s strategic objectives .

7.2 Treasury Organisation and Systems
Treasury departments are typically structured into front office (dealing), middle office (risk and compliance), and back office (settlement and reconciliation). Technology and treasury management systems are critical for efficient operations .

7.3 Operational Controls and Risk
Internal controls—including segregation of duties, position limits, and authorisation procedures—are essential to prevent over-exposure, fraud, and error. Ethical codes and conduct standards govern dealer behaviour .