A treasurer in any department play’s a key role. Any institute, industry or a large organization will have a treasury section which requires knowledgeable people to handle it.
Treasury is
a sector which involves several key risks related to interest rates, credit,
currency, commodity and operations. Large organizations face some or all of
these risks to varying degrees. Corporate treasurers generally manage corporate
finances and ensure a judicious use of surpluses in Investments and money
markets.
Treasurers
serve as financial risk managers that seek to protect a company’s value from
the financial risks it faces from its business activities. When a risk arises,
it can arise from any and many sources, the role requires an understanding of
many businesses and the ability to relate and communicate with various
financial professionals.
Much before
the 20th century, many companies were small, family owned and family
run, but toady with the evolution of public ownership many large international
conglomerates have boomed that trade publicly on one or many global exchanges.
The CFO
(Chief Financial Officer) is responsible for analyzing and reviewing financial
data, reporting financial performances, preparing budgets and managing
financial expenditure and costs. Along with checking the corporation’s
financial health, integrity and security, he is also responsible for carrying
out the Board’s directive in organizational policies associated with the
financial exposure of an organization, while transacting any third party
financial arrangement. Adherence to policies will be monitored to avoid
preventable financial exposure.
In many
Banks and corporate organizations, lack of proper risk management leads to
several external influences. There are many corporate solutions in the Market
to handle these risks. Majority of these risk management tools comes with a
large numbers of bells and whistles, making the product expensive or difficult
to use and manage.
What an
organization requires is, fully integrated solution covering cash, debt and
investments, financial risks treasury accounting, basically a straight forward
Treasury and Risk management solution. Companies need to ensure that their
corporate financial strategies are appropriately aligned, then ensure the
returns are adequate and that appropriate risk management techniques are
deployed.
It is clear that executive management and corporate treasury departments have and will need to respond to this new environment. Secure banking relationships and sources of financing have become more precarious.
Executive
management now requires more information and reassurance. Assumptions about
risks and hedging strategies will routinely be more robustly challenged and
tested. Corporate treasurers will need greater knowledge of the financial
markets together with the ability to make strategic assessments and communicate
them effectively to executive management. It is likely to be an exciting and
challenging time to be in treasury management.
Arowana
Consulting Limited, joined hands with certain leading Corporate Organizations
and Treasury Domain experts to develop a simple product called Arowana Risk and
Treasury Solution (ART) which is suitable for any Corporate Organization,
involved with day to day Market operations in the Money Markets and Currency
Markets.
Treasurers
are increasingly assuming more strategic roles in companies. They have moved
beyond managing working capital to becoming increasingly involved with working
with a company's senior management to manage risk and boost the bottom
line.
