The role of the treasury function

In this lesson

1. 0:00 The role of Treasury in multinationals
2. 0:27 Short-term Treasury functions and cash management
3. 1:48 Cash forecasting and liquidity planning
4. 3:02 Long-term value maximisation strategies
5. 3:36 Optimising capital structure and funding sources
6. 4:25 Calculating and monitoring cost of capital

About this lesson

You'll explore how Treasury manages financial assets, mitigates risks, and ensures liquidity across international operations, while also understanding how it optimises the cost of capital and secures funding at the right price. The lesson examines practical cash management techniques, forecasting methods, and the strategic decisions around debt versus equity financing that directly support your understanding of corporate finance strategy. This content is essential for Strategic Business Leader (SBL) and Advanced Financial Management (AFM) papers, where Treasury function responsibilities and financial risk management are key exam topics. You'll see how centralised Treasury functions balance short-term operational needs—like managing cash inflows and outflows across currencies—with long-term objectives such as maximising shareholder wealth through optimal capital structure. By the end, you'll understand the advantages and disadvantages of centralising Treasury operations, and how weighted average cost of capital (WACC) calculations inform investment and financing decisions in multinational organisations.

Duration: 5m