Certificate in Treasury 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. The certificate in treasury management 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. 

Objectives

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

• 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
• Develop a practical understanding of financial markets and their products
• Recognize and correctly measure financial instruments under International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP)
• 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 

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practices. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

Treasury professionals, financial professionals, finance managers, corporate controllers, financial controllers, chief accountants, accounting managers, senior accountants, banking professionals, back-office managers, traders and dealers, financial regulators, and corporate business professionals. 

Course Outline

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

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
• Cash Management Techniques
• Managing and Accelerating Collections
• Managing and Decelerating Disbursements
• Ratio Analysis for Decision Making

-Accounts Receivable Turnover

-Inventory Turnover

-Accounts Payable Turnover

-Cash Conversion Cycle

Corporate Finance Theory

• Basic Principles in Corporate Finance
• The Value of Money
• Steps in the 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 the 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

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

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

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

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