An example of sustainable cash management in a group: cash pooling

Abstract

In a group for creating value and preserving the continuity of the entities, it is necessary to try and find the balance of internal resources: asking, taking and giving according to the different necessities of the companies of an organization. Moreover the available flow of information of a group has to be considered like a lever to obtain better results and to create an autonomous resource system. Concentrating on the high evolution of a company's treasury management, this article presents a possible example of a sustainable system in term of a group's cash require- ment: the cash pooling. This agreement, possible in different forms, is related to the sustainability concept for the business continuity, optimizing the group's cash resources and decreasing the liquidity risk management related to the company's dynamics in a continuously-changing environment.