The Treasury is responsible for all issues related to financial planning and control in a company. The Treasury’s tasks comprise
- Cash management (CM)
- Liquidity planning (LP)
- Risk management (RM)
Portfolio treatment analyses the financial risks of a company as a whole, bringing together all loan portfolios, derivatives and the financial planning to determine simple but significant parameters.
The management of operating liquidity and currency requires that the cash flow in the various company units is recorded and consolidated. Once surpluses and shortfalls have been identified, only the difference resulting from netting need be balanced, thus saving costs.
Risks arise for a company from outstanding currency items and capital requirements not covered by interest (P&L risks) and from secured items in the form of market value fluctuations. Regular information on the development of the risk situation is necessary, comprising on the one hand the development of the loan portfolio and on the other the development of the financial markets.