Daily Liquidity Planning and Management

Daily Liquidity Planning and Management Student Name Institution Course Professor Date Daily Liquidity Planning and Management Question 1: How to Prepare the Company for the Future as a Financial Analyst As a newly promoted financial analyst, I help the company prepare for future challenges by enhancing its economic resilience. I would focus on supporting senior management in creating a stronger cash management strategy, embracing advanced data analytics, and strengthening risk management practices. One of my priorities would be to improve cash flow visibility. The HSBC (2020) analysis shows how inadequate cash visibility caught many organizations off guard during the COVID-19 pandemic. Companies used obsolete systems that only supplied an end-of-day cash position, hindering financial decision-making. I interned with a small finance team that anticipated cash flow weekly. We had to use expensive short-term finance to address unanticipated shortages, significantly when a large client delayed payment. I recommend real-time cash monitoring technologies for cash positions in my new profession. This could assist the finance team in predicting financial needs and deciding when to borrow or invest. According to the HSBC analysis, real-time visibility helps firms remain agile and responsive amid crises. In addition to improving cash visibility, I would advocate for adopting data-driven forecasting tools. The report suggests organizations should abandon manual processes and embrace AI and ML to improve cash flow insights (HSBC, 2021). These technologies assist firms in managing cash flows by providing real-time, data-driven insights that increase forecasting accuracy and speed up more informed financial decisions (Adelakun, 2023). In a previous work-study project, manual data entry caused inaccuracies and decision delays. Our team underestimated receivables collection time during a product launch, causing a cash constraint at a critical time. In my current role, I propose AI-powered forecasting systems that examine previous trends and adjust for real-time inputs. These technologies would improve cash flow estimates, helping the organization avoid costly mistakes and make better decisions. AI can also identify client payment habits and better predict liquidity demands. Strengthening the company's risk management protocols is another critical aspect of preparing for the future. A significant part of future preparation is enhancing the company's risk management practices. HSBC (2020) recommends stress testing liquidity positions to ensure organizations can survive financ...