Corporate Treasury Roles

Explain what a corporate treasury is?

Explain the interfaces between a firm treasury and its bank. * Credit VS Transactional approaches to bank relationship management.
Key areas of focus include:
-Relationship bank relations (primary banking)
-Bank account analysis
-Bank account management
-loan covenants
-Collateral management
Indicate where treasury typically fits in the organizational structure of a firm.
Treasury management committee, treasury personnel and treasury department.
Treasury management committee: * The significant of financial exposures to companies and the difficulties of predicting changes in financial variables has led to establishment of treasury management committee. * These committees provide medium- to longer-term guidance and direction to the treasurer on financial matters. * They consider the risks and exposures treasury faces, such as liquidity and interest rate risk. * Such committees are responsible for reviewing and agreeing to the treasurer’s exposure management recommendations. * Their most common function is managing FX risk. * Treasury management committees share the burden of responsibility for exposure management decisions. * Some companies reduce the treasurer’s burden of responsibility for exposure management decisions by hiring a professional financial adviser to assist. * Other may not use any form of shared collective responsibility, preferring to maintain high levels of accountability. * To be effective, treasury management committee operates at a relatively senior level within the company, and may include representatives from a wide range of departments.
* Under Board, Chief Executive Officer and Chief financial Officer and above Treasurer.

Treasury personnel * The segregation of duties is an important aspect of organizational control. The underlying principle is that no one person should be in a position to control sufficient stages of processing a