Treasury Operation And Treasury Risk Management Certification Training

This course takes you through the various treasury products available to both banks and corporations. We examine how they are used, their pricing structures and the legal framework. 

Heavy emphasis is placed upon risk assessment and problem-solving techniques, through a clear understanding of a customer's trade cycle. 

We explain effective and simple ways of reducing treasury risk exposure using financial instruments, within a minimal operational risk. In addition to describing the various treasury products, we examine their valuation, sensitivity, use in risk management and treasury control procedures. 

The course, designed for treasury executives, whether in corporations or financial institutions, gives an overview of the audit implications.

Course Background:

In this course, designed for senior managers, we examine episodes such as how history could repeat itself from 2007-08, 2020 and others. These have exposed many problems with traditional financing. We cover regulation, along with changes in the way treasury divisions operate. 

Treasurers with sophisticated skills in corporate finance and risk management methodology together with a good understanding of financial reporting requirements are likely to stand out and be in demand. This intensive training course is designed to offer senior managers and treasury executives a thorough view of the issues facing mode treasury management. 

The complexity of cash management and raising finance in mode financial markets has placed much more emphasis on convincing financial institutions that risks are identified, measured and controlled through post-VaR mode risk management techniques to handle among others interest rate, foreign exchange and credit risk.

Content:

• Structuring successful trade deals and getting them approved
• Understanding all contractual obligations in treasury management
• Mastering facility and back-to-back structures
• Set out the risks found in a typical treasury operation
• Using a case study for a typical corporate, we examine the operational, credit, market and liquidity risk
• Identify and examine control adequacy
• Define operational risk and the key issues of control failure concerning the front, middle and back-office functions
• Risks in treasury activity, from dealer through back-office to senior management
• Understand the uses and misuses of derivatives
• Spot early warning signals before they adversely affect overall performance
• Examine the impact of the accounting standards on treasury operations

Course Outline:

• 1.The Legal and Regulatory Framework
• Basel
• Capital liquidity and ratios
• Auditing
• FATFA rules
• Due Diligence
• Managerial obligations
• 2.Framework for Treasury Management
• Outline of a treasury function
• The treasurer's role
• Policies, internal control and audit
• Economic exposure
• Cost vs. Mark-to-Market Accounting
• Measures of performance
• Benchmarks
• Hedging approaches and costs
• Efficient use of capital
• Variance-covariance approaches
• Risk-adjusted returns on capital
• 3.Treasury Control
• Risk-based assurance plans
• Terms of reference - internal audit coverage
• Scheduling of audits
• Evaluating findings and assessing their significance
• Active maintenance of an audit plan
• 4.Treasury Tools
• Financial Instruments Overview
• Using Equity Finance vs. Loan Finance
• Long Term vs. Short Term Loans
• Hybrid Instruments and tax implications
• An Overview of Trade Finance
• Methods of payment in international trade
• Export Working Capital Finance
• Project Finance for infrastructure
• FRAs, futures, options
• OTC vs. Exchange-Traded Options
• 5.Enterprise-Wide Risk Management
• Balancing risk and return
• Finance versus business risk
• Types of risk
• Handling risks
• Managing risks as a portfolio
• 6.Forms of Market Risk
• Long term vs Short Term interest rate exposure
• Macaulay, modified duration
• Convexity
• Yield curves
• Improvements on duration
• Spot, forward and FX Swap transactions
• Currency options
• Put / call parity
• Translation of FX exposure
• Economic exposure
• Equity, commodity and other market risks
• Hedging decisions
• 7.Hedging and Treasury Management
• Measuring exposure in futures equivalents
• Constructing the discount function
• Designing a futures hedge handling basis risk
• Spot, interpolated & extrapolated hedges
• Option versus futures hedges
• Hedging with swaps
• 8.Stress-testing
• Regulatory and managerial stress-testing
• Why stress-testing
• Deriving scenarios for adding value
• Selecting and developing scenarios
• Communicating stress-testing
• Developing an action plan
• 9.Liquidity Risk
• The issue
• The view from the Central Bank
• Counterbalancing capacity
• Handling uncertainty
• Cash flows at risk (CaR)
• 10.Case Study
• According to the audience and their wishes. This case study, like the mini-case studies, may involve the use of spreadsheets
• The final case study involves group discussions and a role game