Introduction to Corporate Treasury

If you were to ask what a corporate treasurer was back in 1970s, most people would not have an answer. Fast forward today, the Corporate Treasury has evolved and has taken on a life of its own.

From banks to institutions to corporations, it is almost quintessential to find a Treasury department in these setups now as compared to during the 1990s. Post the Great Financial Crisis in 2008, today Corporate Treasurers are gaining more importance and visibility in the Boardrooms.

What is Corporate Treasury?

It is relatively easy to identify the Human Resource (HR) Department and define its roles and responsibilities to matters related to HR. And usually, the definition does not change much from organization to organization.

However, for the Corporate Treasury, sometimes it might not be that straightforward – the roles and responsibilities of one Treasury department might differ from another setup in a different organization.

In general, the Corporate Treasury manages the organization’s liquidity risks, financial risks, banking relationships, working capital and supporting management and business units.

In some organizations, the Treasury department might also include the mergers and acquisitions team, corporate finance, corporate planning, pension fund management, economic analysis and fintech.