Corporate Treasury Function

The Treasury Department manages a company’s financial assets, liabilities, and liquidity. Its primary job is to make sure the business has enough cash to operate and grow — while managing risk, relationships, and returns.

Treasury is usually part of the Finance function, alongside:

• Accounting
• FP&A (Financial Planning & Analysis)
• Tax
• Investor Relations

In large companies, treasury may be its own team reporting to the CFO.

Function Description

Cash Management Managing daily liquidity and forecasting future cash needs

Bank Relationship Management Working with banks on credit, payments, and services 

Funding & Capital Structure Raising debt or equity to fund operations or growth

Risk Management Hedging FX, interest rate, and commodity risks

Investments Managing excess cash in short-term instruments

Policy & Controls Creating internal controls and procedures to protect company assets

• Treasury helps ensure a business can survive tough markets, grow efficiently, and comply with financial regulations.
• It’s a strategic partner to leadership — especially during M&A, capital planning, or crisis scenarios.

• Treasury Analyst
• Cash Manager
• Assistant Treasurer
• Treasury Operations Specialist
• VP or Director of Treasury

 The way a treasury team is organized impacts:

• Efficiency of operations
• Risk oversight
• Decision-making
• Internal controls

A good structure balances central control with local flexibility.

• Most functions (cash management, investments, risk, funding) handled at corporate HQ
• Benefits: better visibility, control, economies of scale
• Common in: large multinational corporations

• Treasury responsibilities are spread across regions or business units
• Local teams manage their own banking, cash, and FX needs
• Common in: companies with diverse, autonomous subsidiaries

• Mix of both: HQ handles policy, controls, and strategy
• Regional/local teams execute transactions or manage short-term cash
• Most companies move toward hybrid for flexibility and control

 Responsibilities

Treasury Analyst Daily cash positioning, reporting, bank transactions

Cash Manager Liquidity planning, short-term investing

Treasury Manager Banking relationships, policy execution, FX exposure

Assistant Treasurer Strategic projects, funding, hedging programs

Treasurer Leadership, capital structure, risk management, reporting to CFO

 Large multinationals may use:

• Shared Service Centers (SSCs): Perform operational treasury tasks like bank reconciliations, payments, etc.
• In-House Banks (IHBs): Central entities that handle intercompany loans, FX trades, and netting.

 Know the advantages and risks of each structure:

• Centralized = better control, harder local execution
• Decentralized = better local responsiveness, less control
• Hybrid = most flexible but can be complex

 Treasury deals with large sums of money, sensitive data, and risk-heavy decisions. Clear policies:

• Reduce fraud
• Ensure regulatory compliance
• Guide decision-making
• Protect company assets

• Defines how cash is managed across accounts
• Sets guidelines for concentration, disbursements, and forecasting
• May include minimum liquidity thresholds or idle cash limits

• Lists approved short-term investment vehicles (e.g., commercial paper, MMFs)
• Sets rules for credit quality, maturity, concentration limits
• Defines who can authorize trades

• Establishes acceptable forms of financing
• Sets targets for debt-to-equity ratios, maturity profiles, and interest rate mix
• Includes rules for refinancing or covenant monitoring

• Identifies hedging strategy (natural hedges, forwards, options)
• Sets thresholds for exposure management
• Defines approval levels for hedge execution

• Guides how banks are selected, monitored, and compensated
• May set target number of core banks or concentration limits
• Helps with fee analysis and service evaluation

• Defines who can initiate, approve, and execute transactions
• Prevents unauthorized activity and ensures separation of duties
• Critical for fraud prevention

• Policy = what should be done (rules and limits)
• Procedure = how it gets done (step-by-step process)

Example: The Investment Policy says you must invest only in A-rated paper.
The procedure shows how to initiate a trade, record it, and report it.

 CTP exam questions may test scenarios like:

"Which policy would limit concentration risk in short-term assets?"
✅ Investment Policy

 Treasury professionals are entrusted with:

• Managing large sums of money
• Controlling access to banking systems
• Making decisions that affect financial stability

Even one lapse in judgment can result in fraud, reputation loss, or regulatory penalties. That’s why ethical conduct is core to the CTP designation.

• Act honestly and with transparency
• Don’t manipulate data, hide risk, or mislead management

• Avoid conflicts of interest
• Disclose relationships that could bias decisions

• Protect sensitive financial data
• Don’t share insider information or violate NDAs

• Maintain up-to-date knowledge
• Only perform duties within your expertise
• Seek guidance when needed

• Execute duties with diligence and accountability
• Follow internal controls, policies, and laws!

Ethical Concern

Bypassing approval limits to execute a trade 

Violation of policy & control breach

Sharing financial forecasts outside the company

Breach of confidentiality

Falsifying a cash forecast to secure more credit

Lack of integrity 

Accepting a gift from a bank in exchange for business

Conflict of interest

 As a CTP candidate, you are expected to comply with the AFP Code of Ethics, which emphasizes:

• Integrity
• Respect for confidentiality
• Compliance with the law
• Avoidance of conflicts

You may be subject to disciplinary action or credential revocation if found in violation.

A treasury analyst notices their supervisor ignoring internal controls to process payments faster. What’s the best course of action?

✅ Report the issue to internal audit or appropriate compliance channels.