International Cash Management
- Adam Edwards
- Nov 12, 2024
- 8 min read
Updated: Nov 13, 2024
I'm studying for a qualification in International Cash Management, and below are 250 questions AI think I should be able to answer to get that qualifiaction.
What is the role of corporate treasury in international businesses?
How does corporate governance impact treasury activities?
Describe the different structures for treasury organisations.
What are the main risks that treasury faces in financial markets?
Explain the importance of cash and liquidity management in treasury.
How do cash flow, debt, and working capital influence liquidity management?
What is the role of surplus cash in cash management?
How does treasury manage debt to ensure liquidity?
Define working capital management.
List the key internal and external factors influencing ICM decisions.
What is the role of cash quality in ICM?
How do strategic business goals shape ICM solutions?
Describe the concept of the ICM journey.
What are tactical and strategic solutions in ICM?
How can technology influence ICM solutions?
Describe how legal and ownership structures impact ICM.
What are the different types of bank accounts used in ICM?
Explain the documentation requirements for opening a corporate bank account.
Why is bank account visibility important in ICM?
What are the typical bank charges for international cash management?
Describe different payment types for domestic transactions.
What are the payment options for international transactions?
How has blockchain impacted payment systems?
What trends are shaping the future of payments?
Describe innovations in the payment landscape relevant to ICM.
How do pooling and multilateral netting contribute to efficient ICM?
What is a cash distribution mechanism?
Explain the daily cash management process in ICM.
How does working capital management relate to ICM?
Define the working capital cycle.
Describe the cash conversion cycle and its relevance to ICM.
How is the cash conversion cycle calculated?
What are the sources of working capital finance?
Why is cash visibility crucial in ICM?
List tools and processes used to achieve cash visibility.
What are the types of cash flows in ICM?
How is a short-term cash-flow forecast prepared?
What are corporate cash flows, and how are they managed?
Describe the challenges in cash-flow forecasting.
Explain the purpose of financial reporting in ICM.
What is the role of management accounts in financial planning?
Identify the key components of published financial statements.
How do accounting standards influence financial reporting?
What is the importance of liquidity ratios in ICM?
Define leverage ratios and their relevance to ICM.
How are profitability ratios used in ICM?
Describe the concept of risk management in ICM.
What is the role of anti-money laundering in ICM?
How does fraud impact international cash management?
What measures are taken to prevent cybercrime in ICM?
How can treasurers assess the credit risk of counterparties?
Explain know-your-customer (KYC) requirements in treasury.
Describe the impact of sanctions on international cash management.
What is the purpose of whistleblowing in financial compliance?
How can treasury support operational cash needs?
What are liquidity management tools commonly used in treasury?
How does debt financing affect a company’s liquidity position?
Explain the purpose of surplus cash investing.
What factors should be considered in a cash repatriation strategy?
How does cross-border regulation impact ICM?
Describe the impact of FX volatility on international cash management.
How can hedging be used to manage FX risks?
What is the importance of counterparty risk in treasury?
How is treasury involved in the management of cash pools?
Define the term “multilateral netting” and its benefits.
What considerations are required when setting up an ICM solution?
How do inflation rates affect cash flow forecasting?
Describe the relationship between working capital and liquidity.
How does interest rate risk affect cash management?
What are the principles of effective cash flow forecasting?
How does regulatory compliance impact ICM solutions?
Explain the role of cash flow statements in financial reporting.
What are the steps to preparing a medium-term cash flow forecast?
How do geopolitical factors affect ICM?
Define cyber risk and its relevance to ICM.
What are common challenges in managing cross-border payments?
How does a company’s credit rating affect its cash management?
How is a “business case” for ICM solutions developed?
Describe the impact of mergers and acquisitions on ICM.
What are key indicators of financial health in ICM?
How does an overdraft facility support liquidity?
What is the role of treasury in managing working capital finance?
Explain the purpose of cash concentration in ICM.
How does automation support efficient ICM?
What is the impact of currency restrictions on cash management?
Describe the effects of a centralised treasury function.
How can cash management techniques improve company liquidity?
Explain the importance of scenario analysis in cash forecasting.
Describe the difference between gross and net cash positions.
What role does financial planning play in ICM?
How can a company evaluate its cash flow gaps?
What are the benefits of a treasury management system (TMS)?
How do cash flow forecasts support business continuity planning?
What is the impact of cash pooling on liquidity?
Describe methods for optimising cash flow.
How does treasury support business expansion plans?
What are common sources of short-term financing?
How do legal frameworks influence international treasury operations?
What is the importance of regulatory reporting in ICM?
How can cash flow ratios be used to assess a company’s liquidity?
What is the difference between tactical and strategic treasury functions?
How does centralisation in treasury benefit international cash management?
Explain the term "cash concentration."
What is the role of corporate governance in international cash management?
How does a decentralised treasury structure impact cash management?
What is the impact of cash management on shareholder value?
Describe liquidity risk and its effect on cash management.
Explain the role of debt structuring in supporting liquidity.
What are the components of a corporate treasury policy?
Describe the term "operational liquidity."
How does cash flow variability impact ICM?
What is the importance of maintaining a cash buffer?
Describe the relationship between working capital and cash flow.
What are the primary cash sources in a company?
What are key considerations in short-term borrowing?
Describe the importance of cash forecasting in financial planning.
What is intercompany funding, and how is it managed?
How does treasury monitor compliance with financial covenants?
What are common methods to improve working capital?
Describe the role of treasury in financial reporting.
What are intercompany netting arrangements?
How does treasury manage intercompany payables?
Describe the cash pooling process.
How is surplus cash managed in multinational companies?
Explain the purpose of a treasury dashboard.
Describe the process of cash flow optimisation.
What factors drive liquidity requirements?
How does treasury support corporate investment decisions?
Describe key objectives of liquidity management.
How does treasury contribute to financial risk mitigation?
What is the difference between internal and external cash flow sources?
Describe the purpose of a cash flow budget.
How does treasury assess operational efficiency?
What is a backstop facility?
How does treasury support financial stability in global operations?
Explain the concept of risk-adjusted return.
What is the purpose of liquidity reserves?
Describe best practices for cash positioning.
What is the purpose of treasury’s involvement in FX hedging?
How does liquidity planning differ from cash flow forecasting?
What factors influence a company’s debt capacity?
Describe treasury’s role in dividend planning.
What is liquidity coverage ratio (LCR), and why is it important?
Describe methods to optimise cash balances.
How do seasonal variations impact cash flow?
Explain how financial markets affect cash and liquidity management.
What is the impact of a high debt-to-equity ratio on liquidity?
Describe the significance of a treasury management system (TMS).
How does ICM support financial flexibility?
What are correspondent banking relationships?
How are notional pooling and cash concentration different?
Explain the benefits of a multibank solution in ICM.
Describe the role of fintech in ICM.
What are the considerations for selecting a banking partner?
How does digital banking enhance cash management?
Explain the role of mobile banking in international cash management.
What is straight-through processing (STP)?
How does open banking affect ICM?
What are challenges in cross-border payments?
Describe treasury’s approach to managing card payments.
What role does blockchain play in reducing payment fraud?
Explain how artificial intelligence supports cash forecasting.
How do ICM solutions support cash concentration?
What is the significance of managing different bank accounts?
Describe the impact of fees on transaction costs.
How do regional banking regulations impact ICM?
Explain the concept of bilateral netting.
Describe the process of cross-currency pooling.
How is a letter of credit used in international transactions?
What is the purpose of payment standardisation?
How can treasury reduce transaction fees?
Explain the role of real-time payments in ICM.
What are remittance advices, and why are they used?
Describe the impact of cyber risks on payment processing.
Explain how treasury manages currency translation exposure.
What is the role of instant payments in cash management?
Describe treasury’s approach to managing receivables.
What are the challenges of working capital financing?
How do interest rate changes impact cash flows?
Explain treasury’s role in accounts payable management.
What is the purpose of cash flow hedging?
How does treasury support supplier financing?
What is a liquidity gap, and how is it managed?
Describe methods to ensure accuracy in cash forecasts.
Explain the importance of variance analysis in forecasting.
What are the benefits of automated cash forecasting?
How does treasury manage seasonal cash flow fluctuations?
What is the impact of currency fluctuations on cash flow?
How is free cash flow calculated?
Describe the importance of consolidated cash forecasting.
What is the purpose of a rolling cash forecast?
Explain the impact of inflation on cash flow forecasting.
What is a sensitivity analysis, and how is it used?
How does treasury monitor cash flow projections?
What is the purpose of liquidity risk tolerance?
Explain how treasury manages unforeseen cash shortfalls.
Describe the impact of non-operational cash flows.
What is the importance of scenario planning in ICM?
Describe the difference between direct and indirect forecasting.
How is a budget variance calculated?
What is the role of bank reconciliation in cash management?
Describe the impact of receivables on liquidity.
How does treasury use management reports in cash planning?
Describe the components of a cash flow statement.
What is free cash flow yield, and why is it important?
Explain the purpose of earnings before interest and tax (EBIT).
How does the capital structure affect liquidity?
What is the purpose of net operating cash flow?
Explain the relationship between asset turnover and liquidity.
What are financial statement notes, and why are they relevant?
How do financial ratios support cash flow analysis?
Describe treasury’s role in managing short-term assets.
How is debt service coverage ratio calculated?
What is the impact of a low-interest rate environment on liquidity?
Describe how financial leverage impacts cash flow.
How does treasury address market risk?
What is liquidity risk, and how is it mitigated?
How does treasury assess counterparty credit risk?
Explain the concept of economic risk in international business.
Describe the purpose of interest rate swaps.
How is commodity risk managed in ICM?
What is currency risk, and how does it affect cash management?
Describe the importance of regulatory compliance in ICM.
What is operational risk in cash management?
How is reputational risk managed in treasury?
Describe treasury’s approach to anti-money laundering.
What is the purpose of financial sanctions in risk management?
How does treasury manage KYC processes?
Explain the impact of data breaches on ICM.
Describe the process of managing tax risks in international transactions.
What are the main components of a risk management framework?
How does treasury address bribery and corruption risks?
Explain the purpose of whistleblowing policies.
What is the significance of stress testing in liquidity management?
Describe the role of a compliance audit in treasury.
How is fraud detection incorporated into ICM?
What is the impact of geopolitics on cash management?
Describe the purpose of financial hedging in risk management.
How are risk limits established for treasury operations?
Explain the purpose of a contingency funding plan.
What are best practices for monitoring regulatory changes?
Describe treasury’s role in fraud risk assessment.
Explain the concept of ‘force majeure’ in risk management.
How does a treasury crisis management plan work?
What is cash flow at risk (CFaR)?
Describe the importance of treasury’s role in corporate governance.
What is ‘loss given default’ (LGD), and how is it calculated?
How does risk transfer support cash management?
What are examples of external risks that affect ICM?
Describe how risk appetite influences cash management decisions.