Treasury and Risk Management

Running head: TREASURY AND RISK MANAGEMENT
TREASURY AND RISK MANAGEMENT
Name of the Student
Name of the University
Author Note

1TREASURY AND RISK MANAGEMENT
Introduction
The major function of department of treasury within the bank relates to the balancing and
the management of the cash flow within the bank on a daily basis. The functions of the treasury
department further include the management of the liquidity of the funds that the bank has been
working on every day. Jones (2016) states that the treasury department of a bank is also involved
in the handling of the various investments that are undertaken by the bank in terms of the foreign
exchange, securities, the management of the liabilities and the assets of the financial organization
as well as the handling of the various cash instruments that are required for the seamless
performance of the bank in the given market.
The following paper attempts a discussion on the various barriers that the banks face in
the management of the treasury. The paper opens with the discussion on the key issues that are
faced by the bank in terms of the treasury management. The paper proceeds to shed light on the
major challenges and risks that are presented in the management of the treasury department
within the bank. The paper nears a conclusion with the discussion on the global trends that affect
the management of the treasury department.
Key Issues
The multitude of financial organizations that are active within the international markets
tend to face a number of issues in the management of the treasury department that is existent
within the given financial organizations. The major issue highlighted in the treasury management
refers management of the financial risks that are faced by the banks. The banks also face certain
issues in the management of the debts and the liquidity that is required for the development of
the bank in its entirety (Page, 2017). The banks also face issues in the management and the

2TREASURY AND RISK MANAGEMENT
maintenance of the issues that stem from the overseeing of the activities of the relationships
within the banking industry.
The management of the financial risks within the banking industry refers to the
management of the flow of cash towards and from the clientele. The negligence in the
management of the cash flow might result in the conditions wherein the organization might face
a loss. The banks should be capable of the proper management of the various devices and
instruments that are necessary for the betterment of the overall performance of the financial
institution in discussion. The other issues that the banks face refer to the issues in the
management of the debts and the liabilities of the bank. The financial organizations that are
active within the international markets should maintain proper management of the debts and the
liabilities that are presented in the give markets (Bessis, 2015). The major issues that arise due to
the ill-maintenance of the debts and the liabilities might relate to the unsure conditions of
funding from the banks thereby leading to the loss of revenue as well. These issues might be
dealt with through the implementation of the Basel III guidelines that help in the development of
the strategies for the management of the financial system active internationally.
Challenges
The financial institutions might also face a number of challenges in their daily activities
of serving the clientele as well as giving in to the demands of the staff in order to maintain a
lower attrition rate within the company. The major challenges that are faced by the financial
organizations refer to the various issues like the extension of credit to the clientele. This might
affect the operations of the concerned financial institution in the given markets as well
(Roszkowska & Prorokowski, 2017). The banks that have been involved in the finding of the
international trading activities might face issues due to the implementation of the trade wars that