Cash & Liquidity Management

Optimizing the cash position of your organization and mitigating operational risks related to payment activities is a key objective of any international treasury, with liquidity management following the principles of security, liquidity and yield (SLY).

And as forecasting cash at international organizations is so difficult due to the sources and timing unpredictability, a robust cash flow forecasting framework is a main element of good cash management.

Trends & Developments

Due to regulations such as Basel III, traditional cash management practices will be called into question in the near future.
In the current volatile financial markets and interest-rate environments international agency treasuries prefer security and liquidity over yield.
The design of your optimal cash management structure is a highly complex exercise because of a wide variety of legal, regulatory, accounting and tax restrictions.
Centralizing and automating your payment processes will ensure complete visibility and mitigate operational risks related to payments.
As more advanced corporates moved towards so-called transaction hubs, centralizing and monitoring all relevant treasury transactional data, this too could be applicable to large international organizations.

How can we assist you?

By leveraging technology and treasury systems the payment or collection process is centralized and standardized.
The design of the optimal cash pooling structure will ensure the optimal flow of funds through the global organization, minimizing internal flows and overdraft fees.
Improved cash flow forecasting will minimize the amount of cash to be held, which can be moved towards longer-term investments to increase yield.
All organizations will have to make sure their cash management solution is future-proof and able to cope with new regulation such as Basel III. This is where an independent and specialized consulting partner such as Zanders can add significant value to your organization.