The treasury policy is a document that provides

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The treasury policy is a document that provides treasury staff on guidelines on their responsibilities. The major focus of any treasury operations is the cash flow risk management that may originate from different circumstances of risk classifications. Explain the types of risk that may originate and how does the Treasury Policy classifies the risk into the function of the Treasury. The major focus of any treasury operation is cash flow risk management that may originate from the following areas: From interst rate risk From FX risk Capital risk Investment risk liquidity risk Funding management Currency management Banking relationship management 6. Briefly explain the pros and cons of managing treasury functions as profit center. PROS Change services offered to business units at market rates i.e. same rates at which the business units would be charged if the said services were outsourced, enabling more realistic costing for the internal price ttransfers. The treasury function would hence bbe motivated to perform at expected market level competence. CONS The profit center concept creates the temptation to speculate which without proper check and balance could lead to the organization downfall Unnecessary waste of bargaining or negotiating time
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