Treasury Policy & Cash Flow Management

Treasury policy design is the establishment of a company's treasury framework — the cash pooling and the cash management structures, the investment policy for the surplus funds, the forex hedging strategy, the banking relationships, and the risk and the control framework for the treasury operations. The treasury policy is the constitution of how the company manages its cash, its liquidity and its currency risk, and its design decides the safety and the return of the company's money.

The company's cash is managed within the treasury policy — the pooling of the group's cash, the short-term investments within the approved limits and instruments, the hedging of the currency exposures, the banking structure and the limits, and the controls that govern who can move the money and how. The policy is the discipline that keeps the treasury safe — the surplus invested within the approved instruments, the forex risk hedged within the approved strategy, and the operations run within the approved limits.

The cost of an unstructured treasury is the silent loss: the surplus sitting in the low-return accounts, the currency exposure unhedged and the losses at the volatility, the investments beyond the risk appetite, the fraud that the controls should have stopped.

This service is for companies establishing or reviewing their treasury. We design the treasury policy — the cash pooling and the management, the investment policy, the forex hedging strategy, the banking structure and the controls — implement the structure and the reporting, and review the policy as the business and the markets change, so the company's cash is managed within the framework its size and its risk require.