Global Corporate Treasury Management - Controlling Cash & Risk

Course Overview Treasury's world is growing increasingly more complex. Never has it been more important for companies to control cash, working capital and risk on a global basis. Over and above the mandate to excel in these traditional roles, Treasury is called upon to be more strategic in its activities and to develop a solid business partner relationship across the complex. Attend this comprehensive 4-day course and learn how to: Effectively measure and manage the performance of the Treasury function Safely hedge against foreign currency and interest rate exposures Increase shareholder value through effective cash and debt management Solve integrated and practical Treasury management problems Explore the latest VaR strategies and risk management techniques This course will cover the following issues in-depth: Treasury organization models, benchmarking and KPI's Corporate finance tools and techniques Funding alternatives including trade finance Global cash management, cash optimization tools and techniques, integrated cash forecasting models Working capital management Best Practice use of Treasury technology Enterprise risk management with special emphasis on financial risk Course methodology Using case study methodology, computer simulations interactive discussions and worked examples, the attendees will learn how to apply best practice tools and techniques in all areas of global Treasury management in order to improve control, optimize asset utilization, reduce cost and better leverage staff. Delegates will learn tools and techniques to: Improve visibility, control and optimization of global cash Improve the accuracy of cash forecasts Optimize working capital and Balance Sheet management Effectively integrate the management of global cash, cash forecasts and working capital Improve visibility and control over foreign exchange and interest rate exposures Improve the utilization of Treasury technology Optimize activities associated with funding, asset liability allocation and capital markets Deploy VaR techniques in the management of portfolios Reduce the cost of global Treasury operations Utilize Treasury value metrics for improved control and results Improve Treasury's business partnership and strategic value to the firm Who Should Attend Corporate CFOs, MD's, Treasurer's, VP Finance, Directors, Assistant Treasurers and Senior Managers responsible for: Corporate Treasury Corporate Cash Management and/or Liquidity Management Foreign Exchange and/or Interest Rate Risk Risk Management and/or Group Risk Management Working Capital Management Corporate Investment and Debt Financial Analysis Finance and/or Accounting Internal Audit Corporate Planning, Internal Controls and Regulatory Compliance Senior Bank Executives and Senior Managers responsible for: Bank Corporate Product Development Bank Corporate Marketing Bank Sales of Corporate Treasury products Bank Corporate Derivative Brokers, Traders and/or Dealers Bank Corporate Investment Brokers Corporate Relationship Managers
Day 1 Treasury Organisation Treasury objectives - The key factors - Corporate treasury compared to bank treasury Change in the paradigm - How the financial meltdown of 2007-2008 changed treasury - Investment lessons learned 2007-2008 - What to do and what not to do Pigs plus Cyprus - What is the increased treasury risk - What to do to manage the risk Interactive Discussion; Treasury’s evolving role - How to become more strategic MNC organiSation structures - How to improve control and effectiveness with less staff Case Study: Global treasury organization structure Vision for integrated treasury - How to integrate all elements for improved results Treasury benchmarking and metrics - Shift from P&L to value-add metrics Delegate Strategy Exercise: Delegates will utilize a work paper approach to evaluate the Strategic aspects of Treasury objectives; what is Treasury's future mission and how best to prepare for it? Capital Structure Governance How to manage a global capital structure - Asset/liability management - Key points to effective global governance - Funding and investment strategy - Effective tools and techniques - Worked examples - Practical examples Interactive discussion Long and short term debt and credit ratings - How to develop an effective strategy Debt management - Debt vs. equity financing Islamic Finance - Matching tenor and nature - Fixed vs. floating - Mismatches Worked examples Practical examples Investments - Comparison of current alternatives - Investment policy - Macaulay and modified duration - Zero curves - Optionality - Worked examples Interactive discussion Corporate finance - Effective tools and techniques - Worked examples Delegate Practical Exercise: Delegates will utilize a computer simulation to develop a practical model for capital structure. Take away. Corporate and Trade Finance Governance Contract management - Holistic approach Trade finance Supply chain finance - Worked examples - Practical examples Treasury Technology Best practice use of treasury technology - Map the process to success - Alternative technical frameworks Interactive discussion Layer the applications - More effective than a hope for full integration Treasury Workstations - From business justification to RFP to implementation Delegate Practical Exercise: Delegates will utilize a computer simulation in a practical mapping Treasury processes to technical solutions. ERP systems - What they can and cannot do SWIFT Net - How to best use the technology Special focus portals - How to pick the correct "club" for the shot Delegate Strategy Exercise: Delegates will utilize a work paper approach to evaluate the Strategic aspects of Treasury technology; what is Treasury's future use of technology and how best to prepare for it? Day 2 Treasury Tools Ownership of treasury tools - How to put an ownership program in place Treasury products - How to integrate the best solutions - Changing landscape: eBAM, SEPA, technical and global The regulatory environment Shared service centers - How to view the alternatives and opportunities Managing bank relationships - How to make it win-win - How to reduce costs - Managing global bank service fees Delegate Practical Exercise: Delegates will utilize a computer simulation in a practical mapping of design of bank operating requirements. Take away. Working Capital Management What is Working Capital Case Study: Working capital Treasury’s role in working capital management - Balance sheet management Working capital best practices - Rules, tools and techniques to drive improvements - Worked examples Interactive discussion Working capital metrics - Improve control with effective metrics Integrated with cash management and cash forecast - Walk cash to the balance sheet and back Delegate Practical Exercise: Delegates will utilize a computer simulation in a practical mapping of receivable processing stages. Take away. Cash Flow Forecasting Forecasting objectives - How success is defined Interactive discussion Forecast models - Worked examples of direct vs. indirect models Forecast line items - Map key cash flow drivers Reconciling the cash to the target and back - How to become more strategic in forecasting Build the forecast - Step by step for success Delegate Strategy Exercise: Delegates will utilize a work paper approach to evaluate the Strategic aspects of Treasury's role in forecasting; what, for whom, when? Day 3 Global Liquidity Management Liquidity management objectives - How to find the optimal solution Liquidity management structures and techniques - Physical concentration compared to Notional Pooling Restricted cash countries - Cash optimization and control despite the barriers In-house bank - Organizational structure - Intercompany loan administration Multi-lateral netting - How to establish a program that reduces costs and improves efficiency Leading, lagging and other means to optimize cash Re-invoicing - How to establish a program that advantages tax and foreign exchange opportunities Multi-bank liquidity management - Follow-the-sun and reverse the sun techniques Case Study: Global cash management Optimizing Global Liquidity Bank account structure Automation techniques Reduce float - Lockboxes, ARC, controlled disbursement Continuous linked settlement Controlling cash in restricted cash countries Cross border rules and tools - SWIFT messages - BIC’s and IBAN’s Daily global liquidity management cycle - Step by step - Worked examples Delegate Practical Exercise: Delegates will utilize a computer simulation in a practical design of a global cash management system. Take away. EURO Melt Down The situation - Underlying fundamentals Risk impact Recommended actions Interactive Session: Developing a custom plan of action Day 4 Enterprise Risk Management Objectives Risk vs. return Categories of risk - Core vs. non-core risks VaR and other models to measure risk - Worked examples Interactive discussion Putting a holistic process in place - Step by step key elements - COSO framework - Country of residence selection Governance - Segregation of duties - SOXA, internal audit - Policy Delegate Strategy Exercise: Delegates will utilize a work paper approach to evaluate the strategic aspects of Treasury's role in risk management; what, for whom, when? Derivative Instruments Defined and objectives in use Commodities - Markets and hedging tools Interest Rate Risk Gap analysis - Types and use - Worked examples Interest rate risk - Terminology and pricing - Interest rate management strategy - Interest rate swaps, futures and CFD’s - Worked examples Foreign Exchange Foreign exchange risk - Terminology and pricing - Interpolated and extrapolated hedges - Worked example - Foreign exchange risk management strategy and operations Interactive discussion - FRA's vs. futures - Comparison - Spot, swaps, forwards, NDF’s, options, FRA's - Worked examples Foreign exchange policy key points Tailored foreign exchange solutions - Pyramid hedging - Cash bucket hedging - Asset swap - Worked example Accounting Accounting for foreign exchange - IFRS hedge accounting requirements - Schedule of compliant and non-compliant transactions - Convergence with GAAP accounting treatment - worked examples Delegate Practical Exercise: Delegates will utilize a case study in a practical design of a foreign exchange management structure. Take away. Course summary and close