Cash, Treasury and Risk Management

At the end of this training seminar, you will learn to:

• Manage Cash, Liquidity & Working Capital to reduce finance costs and improve returns
• Recommend appropriate Methods of Short-term and Long-term Finance
• Evaluate Capital Investment Opportunities
• Determine and Implement the company’s Risk Management Strategy
• Recommend Hedging and Risk Management Decisions

COURSE OUTLINE

The Role of Treasury Management – An Overview

• The Role & Scope of Treasury Management
• Operation & Location of a Treasury Department – Cost or Profit Centre; Centralised or Decentralised
• Cash & Liquidity Management
• Working Capital Management
• Capital / Finance Management
• Risk Management

Cash & Liquidity Management – A Detailed Analysis

• Cash Forecasts: Role & Preparation
• Investment of Cash Surpluses to Maximize Return
• Meeting Cash Calls and Short-Term Cash Shortages / Short Term Finance
• Working Capital Management – Determining the Optimum Level
• Multi-national & Group Cash Management
• Cash Budgets: Process & Control

Financing and Capital Management

• Strategic Objectives: Consolidation, Growth, M & A; Joint Ventures, Diversification, etc.
• Financing Strategic Objectives / Long Term Finance (Public & Private Equity vs. Buyer & Supplier Debt)
• Optimizing the Capital Structure to Minimize the Cost of Capital (WACC)
• The Capital Asset Pricing Model (CAPM)
• Capital Investment Appraisal – NPV; IRR, Payback
• Capital Rationing: Internal & External

Risk Management

• Identifying Risks and Uncertainties – Internal & External; Financial & Non-Financial
• Measuring Risk – Volatility; Variance; Standard Deviation; Probability; Value at Risk
• Determining the Risk Management Strategy – Assessing Impact and Probability
• The 4 T’s – Tolerate; Terminate; Transfer; Treat
• Internal Controls & Internal Auditing
• Credit & Counterparty Risk Management

Currency, Interest Rate & Commodity (Oil Price) Risk Management

• Forward Contracts and Forward Rate Agreements
• Options – Calls & Puts; European & American
• Futures – Market Correlation; Margin Payments, etc.
• Swaps – Currency & Interest Rate Risk and Benefits
• Foreign Currency Accounts other Internal Methods / Tactics
• Foreign Currency Borrowing

FOR WHOM:

Treasury & Risk Managers, Financial decision makers and other professionals with an interest in finance and the latest market developments

TRAINING METHODOLOGY

The training methodology combines lectures, discussions, group exercises and illustrations. Participants will gain both theoretical and practical knowledge of the topics. The emphasis is on the practical application of the topics and as a result participant will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.