Treasury management is important for companies to effectively monitor cash inflows and outflows, maintain working capital and profitability, and ensure investments are low risk. It is crucial for companies to have treasury controls like segregation of duties and investment limits to prevent inappropriate transactions and reduce risk. A treasurer's bonus cannot be based on investment returns to avoid incentivizing excessive risk-taking. It is also important for treasurers to have good relationships with multiple banks to mitigate risks from banks exiting segments or countries and to avoid over-reliance on any single bank relationship. Without proper treasury procedures and controls, a company could experience unstable cash flows, mismanaged investments, and losses.