Functional processes

An overview of some of the main functional processes involved in treasury management

Treasury management is complex and requires the use of a variety of different systems and processes so that assets can be managed and disbursed correctly and effectively. Some of the main functional processes involved in a treasury system revolve around how it handles income, operation and disbursement.

Income

Treasuries can often require an ongoing source of income to be sustainable over the long term. Income could come from one or multiple sources such as transaction fees, product or service offerings, financial yields, investment returns, wealth taxes or donations.

Operation

There are a number of systems and processes involved in managing a treasury and disbursing treasury assets. Some areas of concern for operating a treasury include handling any governance decisions, asset management and storage, risk management, financial strategy, self improvement processes, diversification, management and oversight of different funding processes, payment processing and enforcement of any community set constitution or policies. Treasuries could have a number of parameters that will need to be managed by a community that will influence how the treasury is maintained and operated.

Disbursement

Systems and processes are needed to allocate funding towards promising initiatives that could generate impact for an ecosystem and that could help with addressing any goals and objectives. Progress needs to be audited and verified and impact needs to be measured when initiatives get completed. Treasuries might also need to disburse assets to pay for operational costs involved in maintaining and operating the treasury itself.