Short-term investment is any period up to one year. It covers:

• the investment of overnight surplus cash;
• the investment of general working capital;
• the investment of funds set aside for a particular purpose (e.g. to fund an acquisition or to return to shareholders); and
• the investment of funds received from a recent divestment.

The report reminds the reader that: It is desirable to have a single short-term investment policy, irrespective of the investment circumstances, will allow the treasury team responsible for investing cash to manage the investment risk in a consistent manner.

This basic and thorough guide describes the processes and activities in managing risk in short term investments:

• setting and implementing investment strategies:
  • the strategy-setting process
  • the policy-setting process
• setting objectives: security, liquidity, yield
• identifying invisible funds
  • cash position forecasting
  • global cash mobilzation
  • decision making responsibility
• dentifying sources of risk
  • market risk: % rate risk, FX risk
  • counterparty risk
  • liquidity risk
  • other risks
• managing risk
• what an investment policy should contain.

Read more in the full guide here.