Treasury and Cash Management

Introduction

The recent, massive banking crisis that created financial havoc around the world caused considerable savings and wealth to evaporate, strained the equity levels of global organizations to unprecedented minimum levels, and resulted in money markets, as well as other normally liquid and transparent capital markets, to temporarily freeze up or suspend trading activities. As a result of the substantial losses caused by this tidal wave of financial ruin that occurred in equity stock markets, currency, commodity, and derivative markets on a global basis, treasury, and cash management functions are now regarded as vital for the stability, security, and profitability of all organizations.  

Objectives

As a result of completing this training session, all participants will improve their knowledge and skills in the following functional areas:

• Understanding  the roles, responsibilities, tools, and strategies associated with treasury management, including international best practices and procedures
• Enhancing financial management skills in terms of managing assets and liabilities liquidity issues
• Discuss the various types of risks associated with global organizations, namely interest, exchange, credit, and commodity pricing risks, and identifying sources and methodologies of risk management in attending to these types of risks
• Examine the nature, risk, and utilization of financial derivatives in addressing financial risks
• Understand the basic concepts of cash management in order to enhance organizational cash flows and maximize portfolio investment returns

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?

• Members of the treasury departments of companies within the oil and gas, petrochemical,  and other industries who have responsibilities for managing cash flow and working capital  
• Business professionals, strategic and business development planners, and project professionals who wish to refresh their understanding  and enhance their skills in managing and improving cash flow and working capital performance  
• Personnel employed in the banking, insurance, and the general financial services sector where the management of cash is of prime importance
• Any operational, engineering, commercial, marketing, technical, or financial personnel whose work impacts on cash flow or working capital, and who wish to develop their expertise in these areas to support their current roles or for career development.  
• All professionals attending this course will benefit from refreshing their understanding and enhancement of their skills in managing and improving cash flow and working capital performance.

Course Outline

Financial Statement Analysis

• Measuring financial performance
• Horizontal analysis.
• Vertical analysis
• Ratio analysis.
• Interpreting figures from financial statement
• Use of financial statements for short term and long term decisions
• Financial statements and liquidity ratios
• Case study.

Traditional and Activity-Based Approaches to Costing

• Absorption (Full) vs. Variable costing
• Under-costing and over-costing: the consequences for profitability
• How to refine a costing system?
• Activity-based costing (ABC) and cost-management (ABM)
• Cost hierarchy & Cost drivers
• Linking resources, activities, and management
• Introducing Activity-based management (ABM)
• Linkages between ABM and ABC – monitoring value creation
• Problems, Case Study, and Examples

Cost Planning and Pricing Decisions: Life-Cycle-Costing, Target Costing, and Target Pricing

• Budgetary control and variance analysis
• Price and volume effects within variance analysis: state of the art
• Responsibility centers: cost, profit, and investment
• Measuring responsibility center performance
• Segment reporting internally and externally
• Sales volume break-even
• Breakeven and targeted net income
• Break-even analysis

Analysis of Investment Decisions

• Methods of Analysis
• Cash Flows and the Time Value of Money
• Defining the approval criteria and review process
• Capital budgeting as an investment tool
• Decisional Framework ARR, IRR, NPV, alternatives
• Cost of Capital