Effective liquidity management will enable an organisation to derive maximum benefits at minimal cost. Effective cash optimisation is critical to all organizations, especially in a tough economy. Cash is the lifeblood of organisations. An organisation having a proper set of liquidity
management policies and procedures will improve profits, reduce the risk of corporate failure and significantly improve its chances of survival. It also provides a strategic advantage especially in difficult economic times.

Liquidity Management can help corporate to achieve its goal to consolidate cash more effectively to take advantage of market opportunities. This could mean putting it back into working capital of the company, retiring debt, or maximizing returns through short-term investments until the right opportunity comes along. Regulatory developments worldwide are being worked upon to facilitate a more co-coordinated approach towards Liquidity Management. Even Liquidity product offerings from Banks and technology vendors are working towards providing best of breed tools for Liquidity Management.

Managing liquidity on a global basis is about moving your money from where you have it to where you need it; to be available at the time you need it. It is also about improving your control and visibility over funds, and being able to make more strategic decisions on how best to deploy your liquidity into investments or debt reduction.