Treasury Managment by Infinicash

Mastering the Money Game: Treasury Management for SMEs

What is Treasury Management? Is it Cash Flow management? Risk management? Liquidity? Management of bank accounts? Many people are confused by the definition because treasury management is all of these, but still differs for each company, as the emphasis of each component greatly depending on their circumstances. The technical definition is, “the strategic handling of an organization's finances to optimize cash flows, minimize risks, and maximize returns”. Large international conglomerates must deal with foreign exchange rates and shareholders. While, smaller enterprise may be more concerned with making sure their cash is secure.  

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The Power of Balance: Why bank diversification is important

In a sign of the world’s optimism, diversification in financial terms is seen mostly in the positive sense: not putting all your cash in one investment class to make sure you lower your risk of losing everything. Sure, a focus on not losing cash isn’t inherently “positive”, but it is still almost always linked with investment: the idea of having excess cash to play with and earn money with. That was until on March 10, 2023, when through Silicon Valley Bank’s own lack of diversification in their investments, they reminded customers of banks worldwide that diversification runs deeper than investments and is linked with any financial asset. Banks are low risk, but not zero risk. And unlike an investment, customers are unlikely to feel a sense of “if you go down, we go down together” on their savings like they might for a speculative venture. So what is the answer? Alongside “diversify” in finance 101, you probably know you shouldn’t leave all your cash under your mattress, but where should you put it?  

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