Treasury management aims to manage and optimize in- and outgoing cash flows, liquidity and financing. Treasury is also tasked with mitigating foreign exchange and interest rate risks as well as maintaining relationships with banks and other financial institutions.
Optimizing tax efficiency and dealing with legal matters can also be part of the treasury tasks.
A well-designed treasury function is able to add value to a company in terms of e.g. optimization of cash flows and liquidity resulting in lower interest expenses but also by reducing transaction and financing costs.
Treasury management, if well-designed and executed, will contribute to the financial stability and continuity of a company.