Research Efficiency of Settlement Transactions on Cash Management System and Its Construction for Sophistication of Liquidity Management

Abstract

According to an investigation to a business company, the financial executive of any company have relatively low level of understanding about cash management system (CMS), particularly cash balance and risk exposure. Cash management could crate risk and be a problem for a company in this era of cross country business environment. This concern has been continually highlighted in recent years. Even large companies which advanced of global financial operations generally have 80% visibility of their funds (Kyriba company survey). However, there is a 20% room to be improved for invisible funds in emerging countries and volatile currencies, which generate the large amount of risk. To prevent an increasing of cash management inefficiency, companies should pay more attention to the visibility of corporate funds management. The purpose of this paper is to examine the importance and benefit of CMS.