Corporate treasuries are in charge of a company's cash reserves. They serve as financial risk managers who seek to protect a company's value from the risks it faces regularly due to the nature of its business. Additionally, treasurers manage company cash reserves to ensure liquidity, risk, funding, proper capital allocation, and resources in line with the company's strategic goals.
To better manage a company's liquidity, the tools utilized are the balance sheet size and asset and liability liquidity. This ensures sufficient liquidity to engage in operations, such as takeovers, and derive the maximum possible return on cash reserves.
Corporate treasurers also have to oversee the execution of company-wide strategies, reporting back to C suites on the viability of buying a business or expanding into new territories. They may be tasked with finding the money if the C suite decides, whether through asset liquidation, stock issue, or reserves.
Lastly, corporate treasuries are also tasked with managing risks. These risks may relate to interest rates, credit, currency, commodities, or the company's operations. The most common ones are related to liquidity, credit, and currency.
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