Professional Treasury & Cash Management

Introduction

It is essential for every organization to effectively utilize its funds and manage its exposure to key risks arising from fluctuations in interest rates and foreign exchange rates. This course examines the important roles of the corporate treasury in managing cash flow and liquidity, working capital, accessing debt financing, and managing capital. This course provides professionals with a sound understanding of the tools and techniques required for effectively managing the various aspects of treasury risk.

Course Objectives of Professional Treasury and Cash Management

• Describe and explain the roles of corporate treasury management and the treasury function.
• Apply up-to-date practices covering asset-liability management and cash management techniques.
• Recognize and correctly measure financial instruments under International Financial Reporting Standards (IFRS).
• Describe fair value measurement and explain its effect on financial instruments’ presentation.
• Explain hedging and speculation, and distinguish between the different hedging techniques applied by the treasury function.

Professional Treasury and Cash Management Course Outlines

Day 1

Introduction to the Treasury Function

• Definition and responsibilities of the treasury function.
• Treasury functions as part of the Organizational Structure.
• Treasury professionals’ role.
• Strategic challenges for treasurers in organizations.
• Risks surrounding the treasury function.

Day 2

Cash and liquidity management

• Asset and liability management versus treasury management.
• Understanding the cash cycle.
• Reasons for holding cash: transaction, precautionary and speculative.
• The optimum cash balance:
  • Baumol’s model.
  • Miller-Orr model.
• Managing and accelerating collections.
• Managing and decelerating disbursements.
• Ratio analysis for decision-making.

Day 3

Corporate finance theory

• The time value of money.
• Steps in the investment management process.
• Calculating holding period return.
• Risk and return concepts.

Fixed income securities and bonds’ valuations

• The money market and instruments.
• The debt market.
• Risks associated with the debt market.
• Bonds’ valuation techniques
• Price and maturity relations.

Day 4

Stock market and equity valuations

• The equity instruments: IPOs, seasoned offerings, and private equities.
• Holding period returns for equity securities.
• Equity valuation techniques.

Accounting for investments: recognition, impairment, and hedge accounting

• Type of investment securities.
• Classification under IFRS 9.
• Initial recognition and subsequent measurement.
• Transfer between categories.
• Impairment of financial assets under the new standard.
• Briefing on hedge accounting under IFRS 9.

Day 5

Briefing on derivatives markets, hedging, and speculation

• Definition of derivatives: forwards, futures, options, and swaps.
• Difference between hedging and speculation.
• General internal hedging strategies.

Technology in treasury operations

• The role of information management in treasury.
• Types of information management technology solutions.
• Information security.
• Technology policies and guidelines.
• Technology management systems.