Treasury management is the management of an organization’s collection, concentration, disbursement, investment and funding activities as well as the process of dealing with financial risk issues. The very first function of treasury management is cash management which is the corporate process of collecting and managing cash as well as the use of cash for short-term investing. This makes cash management a key component of a company's financial stability and solvency.

Course 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 cash optimization techniques
• Draft a cash flow forecast and establish cash and loan forecasted balances at specific dates
• Develop a practical understanding of treasury investment and products along with their risk and return
• Implement technology related to treasury operations

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 optimization
• Forecasting
• Risk analysis
• Risk management
• Bond valuation
• Assessing technology in treasury operations

Course Outline

Introduction to the treasury function

• Definition and responsibilities of the treasury function
• Treasury function as part of organizational structure
• Role of treasury professionals
• Strategic challenges for treasurers in organizations

Risks surrounding the treasury function:

• Market risks: interest rate risk, FX risk, equity price risk, commodity price risk 
• Liquidity risk
• Credit risk
• Other risks
• Developing a risk heat map for treasury function
• Cash and liquidity management
• Compensating balances

The optimum cash balance:

• Baumol’s model
• Miller-Orr model
• Managing and accelerating collections
• Netting: bilateral and multilateral
• Re-invoicing
• Working capital ratio analysis for decision making
• Days sales outstanding versus credit term
• Days inventory on hand versus lead time
• Days of payables
• Cash conversion cycle
• Treasury Key Performance Indicators

Cash flow forecasting

• Purpose of cash flow forecasting
• Types of forecasts: purpose, horizon, frequency
• The forecasting processes
• Forecasting methods
• Short-term cash flow forecasting method
• Medium and long-term forecasting
• Statistical methods in forecasting

Treasury funding and investing

• Managing short-term borrowing
• Short-term funding alternatives
• Long-term debt financing
• Short-term interest rates versus long-term interest rates
• Loan agreements and covenants
• Credit rating agencies
• Bonds as tool for long-term investing and funding
• Managing short term investments
• Short-term investment policies
• Securities safekeeping and custody services
• Long-term equity investments and stocks
• Derivatives markets and hedging
• Briefing on technology in treasury operations
• Information management technology platforms
• Technology management systems (TMS) functionalities
• Cash management
• Spreadsheets
• Payments
• Debt and investment transactions
• Focus points to implement TMS
• Basics of e-commerce
• Electronic Bank Account Management (eBAM)
• Treasury-related fraud