Learning Objectives:

• Define the treasury function and its strategic importance.

• Explain the core objectives of treasury management.

• Describe how treasury adds value to an organisation.

1.1 Defining Treasury Management
Treasury management is the strategic corporate function responsible for managing an organisation’s financial resources, liquidity, and financial risks . The treasurer is the custodian of the company’s daily liquidity, responsible for managing, anticipating, and securing cash flows to ensure that financial needs are covered . Effective treasury management ensures the company can meet its financial obligations, optimises the use of cash, and supports strategic decision-making.

1.2 Core Objectives of Treasury
The primary objectives of treasury are to manage liquidity, funding, and financial risk .

• Liquidity Management: Ensuring sufficient cash is available to meet obligations as they fall due.

• Funding Management: Securing appropriate financing for the organisation’s operations and growth.

• Financial Risk Management: Identifying, measuring, and mitigating risks such as foreign exchange, interest rate, and credit risk.

1.3 The Strategic Role of Treasury
The treasury function has evolved from a back-office role to a strategic partner in the business . The treasury function’s responsibilities include managing bank accounts, payments, liquidity structures, cash forecasting, risk management, and trade finance activities . It plays a key role in corporate finance, investment decisions, and supporting the organisation’s strategic goals.