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Why Attend
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. The certificate in treasury management course examines the important roles for 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 tools and techniques required for effectively managing the various aspects of treasury risk.
Course Methodology
The course uses a mix of interactive techniques, such as brief presentations by the consultant, application of theories presented by the consultant and group exercises to exchange experience and apply knowledge acquired throughout the course.
Course Objectives
By the end of the course, participants will be able to:
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Describe and explain the roles of corporate treasury management and the treasury function
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Apply up-to-date practices covering asset liability management and cash management techniques
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Develop a practical understanding of financial markets and their products
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Recognize and correctly measure financial instruments under International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP)
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Describe fair value measurement and explain its effect on financial instruments’ presentation
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Explain hedging and speculation, and distinguish between the different hedging techniques applied by the treasury function
Target Audience
Treasury professionals, financial professionals, finance managers, corporate controllers, financial controllers, chief accountants, accounting managers, senior accountants, banking professionals, back-office managers, traders and dealers, finance regulators and corporate business professionals.
Target Competencies
Treasury management
Cash management
Risk analysis
Risk management
Equity valuation
Fixed income valuation
Hedging
Accounting for financial instruments
Course Outline
Introduction to the treasury function
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Definition and responsibilities of the treasury function
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Treasury professionals’ role
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Risks surrounding the treasury function:
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Credit and interest rate risk
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Liquidity risk and exchange rate risk
Cash and liquidity management
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Asset and liability management versus treasury management
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Understanding the cash cycle
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Reasons for holding cash: transaction, precautionary and speculative
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The optimum cash balance:
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Baumol’s model
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Miller-Orr model
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Managing and accelerating collections
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Managing and decelerating disbursements
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Ratio analysis for decision making
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Accounts receivable turnover
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Inventory turnover
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Accounts payable turnover
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Cash conversion cycle
Corporate finance theory
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The time value of money
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Steps in the investment management process
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Holding period return calculation for fixed income securities
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Risk and return concepts
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Calculating mean of returns
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Variance and standard deviation for an individual security
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Covariance and correlation of returns for two securities
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Interpreting correlation of returns
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Variance and standard deviation for a portfolio of two or more securities
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Covariance and correlation of returns for a portfolio of securities
Fixed income securities and bonds’ valuations
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The money market and instruments
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The debt market
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Risks associated with the debt market
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Credit risk
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Prepayment risk and interest rate risk
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Bonds’ valuation techniques
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Price and maturity relations
Stock market and equity valuations
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The equity instruments: IPOs, seasoned offerings and private equities
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Holding period returns for equity securities
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Equity valuation techniques
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Discounted cash flow model
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Multiplier model
Accounting for financial instruments
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Classification of instruments
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Held-To-Maturity debt securities (HTM)
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Trading Securities (TS)
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Available-For-Sale securities (AFS)
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Fair Value Through Profit and Loss Option (FVTPL)
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Initial and subsequent measurements
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Transfer between categories
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De-recognition of financial instruments
Briefing on derivatives markets, hedging and speculation
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Definition of derivatives: forwards, futures, options and swaps
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Difference between hedging and speculation
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General internal hedging strategies
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Investing in the home currency
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Creating a natural hedge
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Currency diversification
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Mark-ups
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Counter trades and currency offsets
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