Treasury Cash Management Course

Purpose

Accountants, risk managers, operations staff, and other financial professionals, as well as employees in the Treasury division of a bank or corporation, are all intended participants in this course. These participants will receive the greatest tools and techniques for Treasury management from it. The course will teach participants the most recent and useful tools and approaches that they can use in their organization to improve effectiveness, efficiency, and profitability through lectures, real-world case studies, computer simulations, and workshops.

Program Objectives:

By the end of the program, participants will be able to:

  • Increase their understanding of the treasury function and corporate treasury management.
  • Obtain current procedures for cash management and asset liability management.
  • Gain a working knowledge of financial markets and related products.
  • Accurately identify and value financial instruments in accordance with Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) (GAAP).
  • Gain a better grasp of fair value measurement and how it affects the presentation of financial instruments.
  • Make use of their knowledge of speculation and hedging, and comprehend the various hedging strategies used by the treasury function

Target Audience

  • Key Personnel involved in Accountants, Cost Control, Budgeting, Project Accountants and Risk Management
  • Non-technical professionals who require a financial perspective of Cash management
  • Financial Controllers and Internal Auditors
  • Those who wish to bring their skills and understanding up to Cash Management

DURATION: 10 days

The Contents:

Topic 1:Treasury Function

  • Definition and Responsibilities of Treasury Function
  • Treasury Professionals’ Role
  • Risks Surrounding the Treasury Function:
  • Credit and Interest Rate Risk
  • Liquidity Risk and Exchange Rate Risk

Topic 2: Cash and Liquidity Management

  • Liquidity issues
  • Liquidity reserves
  • Bankruptcy issues
  • Importance of cash flow forecasting
  • Operating and financial cash flows
  • Analyzing cash forecast
  • Forecasting alternatives
  • Readings: Apple Cash Dilemma and Bond Offering
  • Simulation: Advise Apple Treasurer
  • Payments and float
  • Credit and receivables
  • Inventory and payables
  • Trade credit
  • E-Commerce
  • Exercise: Cash conversion cycle auto/retail sectors
  • Simulation: Working Capital and Cash Conversion

Topic 3:Supply Chain Finance and Inventory Management

  • Case Study: Proctor & Gamble
  • Launching a Supply Chain Program
  • Implications for P&G and its Suppliers
  • Supplier Funding Options
  • Exercise: Apple Computer
  • Lean Inventory Management
  • Financing Considerations
  • Potential Challenges

Topic 4:Corporate Finance Theory

  • Basic Principles in Corporate Finance
  • The Value of Money
  • Steps in Investment Management Process
  • Holding Period Return Calculation for Fixed Income Securities
  • Risk and Return Concepts
  • Calculating Mean of Returns
  • Variance and Standard Deviation for an Individual Security
  • Covariance and Correlation of Returns for Two Securities
  • Interpreting Correlation of Returns
  • Variance and Standard Deviation for a Portfolio of Two or More Securities
  • Covariance and Correlation of Returns for a Portfolio of Securities
  • Normalizing Risks and Returns
  • Coefficient of Variation

Topic 5:Fixed Income Securities and Bonds’  Valuations

  • The Money Market and Instruments
  • The Debt Market
  • Bonds and Sukuk
  • Other Fixed Income Securities
  • Risks Associated with the Debt Market
  • Credit Risk
  • Prepayment Risk and Interest Rate Risk
  • Bonds’ Valuation Techniques
  • Price and Maturity Relations
  • Yield Calculations

Topic 6: Stock Market and Equity Valuations

  • The Equity Instruments: IPOs, Seasoned Offerings and Private Equities
  • Holding Period Returns for Equity Securities
  • Equity Valuation Techniques
  • Discounted Cash Flow Model
  • Multiplier Model

Topic 7: Accounting for Financial Instruments

  • Classification of Instruments
  • Held-To-Maturity Debt Securities (HTM)
  • Trading Securities (TS)
  • Available-For-Sale Securities (AFS)
  • Fair Value Through Profit and Loss Option (FVTPL)
  • Initial and Subsequent Measurement
  • Transfer between Categories
  • De-Recognition of Financial Instruments

Topic 8:Briefing on Derivatives Markets, Hedging and Speculation

  • Definition of Derivatives: Forwards, Futures, Options and Swaps
  • Difference Between Hedging and Speculation
  • General Internal Hedging Strategies
  • Investing in the Home Currency
  • Creating a Natural Hedge
  • Currency Diversification
  • Mark-Ups
  • Counter-Trades and Currency Offsets

Topic 9: Key Performance Indicators (KPIs)

  • Treasury Metrics
  • Dashboard/Scorecard
  • Simulation: Metrics for Treasury Dashboard

Topic 10: Information Technology

  • Banking Portals
  • Treasury Management Software
  • Enterprise Resource Planning (ERP) Systems
  • ERP Integrated Treasury Management Systems
  • Vendor Treasury Management Demo

Topic 11: Treasury Innovation

  • Cryptocurrencies (Bitcoin, etc.)
  • Blockchain
  • Simulation: Blockchain Treasury Use Cases