Cash Management in UK Financial Companies: IntroductionRisk is the basic element that drives financial behavior and without risk the financial system would be greatly simplified, but this risk is already present in the real world Financial institutions. As a result, risk must be managed effectively to survive in this highly uncertain banking environment which will undoubtedly rely on risk management dynamics. Therefore, only banks that have an efficient risk management system will survive in the market in the long term. Monetary policy in the UK aims to achieve monetary stability, and this objective usually operates during the price at which money is lent or invested and the interest rate. In March 2009 the MPC announced that in addition to setting the bank rate, it would begin injecting money directly into the economic sector by purchasing financial assets, often known as quantitative easing. Furthermore, in August 2013 the MPC provided some explicit guidance regarding the future conduct of monetary policy. The MPC intends to maintain at a minimum the current highly simulative stance of monetary policy until the economic downturn is significantly reduced, provided that this does not pose material risks to price stability or financial stability.I. Liquidity Management Liquidity risk has appeared as a major risk in the banking sector; Liquidity management is the top priority for bank management and regulators. The British bank is exposed to a variety of risks. The objective of this part is to identify and describe these risks. The research outlined the following risks. Liquidity Risk There are some potential risks arising from decreased liquidity which will be mentioned as follows. 1) Credit Risk: It's... middle of the paper... .reliable liquidity management via real-time tracking and monitoring of surplus positions, automatic account sweep, independence from expensive intraday borrowings to increase liquidity Decisions more effective investment and financing options provided with greater clarity in cash movements. Improved balance information through reconciliation of correspondence movements, eliminating the dependency on presumed settlement and next day statements. More efficient management of transaction volumes higher and global cash movements Reduce foreign exchange rate risk by hedging using derivatives (foreign currency futures, foreign currency swaps, foreign currency options, and foreign currency forwards). Use many instruments to manage and evaluate IRR such as duration gap analysis, maturity gap analysis, what-if analysis, and value-at-risk (VAR) analysis and option-adjusted spread analysis (OAS)