Session 1:  Budgets, Forecasts, Cash flows & Variance Analysis

• Budgeting Alternatives & Variance Analysis
• Budget v. Actual v. Forecast
• Revenues, Costs and the Breakeven Point
• The Basics of Cash Management
• Cash Flow Studies
• Benefits from Accurate Cash Flow Forecasts

Session 2:  ​Liquidity Management & Default

• Who is responsible for Liquidity Management?
• The Dangers of Unrealistic Assumptions
• The Current Situation
• The Need to Manage Growth
• Debt Maturity Profile
• Recognising Contingent Liabilities
• Future Liquidity & Capital Resources
• Liquidity & Activity Ratios
• Leverage & Default Issues
• Contingency Planning

Session 3:  Cash & Short-Term Assets ​

• Handling Cashflows
• Important Studies and Requirements
• Analysing Short Term Asset Liquidity
• Issues of Cash & Demand Deposits
• Impact of Changes in Loans Policies
• Recognising Material Adverse Change Clauses

Session 4:  The Time Value of Money Concept

• Present and Future Values
• Annuities
• Net Present Value

Session 5:  ​Time Value of Money Exercises

• Delegates, in small Groups, will work through a number of simple exercises to reinforce their understanding of the concepts.

Session 6:  Short Term Investments / Borrowings

• Types of Instruments
• The Repurchase Agreement
• Discount versus Interest Bearing
• Short Dated Bonds

Session 7:  ​Money Markets Exercises

• Delegates, in small Groups, will work through several examples to reinforce their understanding of short dated instruments.

Session 8:  ​Assets, Liabilities & The Balance sheet

• Implementing an Effective Approach
• Modern Philosophies
• What Drives You?
• ALCO Composition & Objectives
• Effective Data Collection

Session 9:  ​Measuring Risk – GAP Analysis

• The Technique
• Does today Matter?
• Liquidity versus Repricing Gaps
• Static, Cumulative & Dynamic Reports
• Specific Issues
• Advantages & Disadvantages
• Preparing a Balance Sheet Gap Report

Session 10:  ​GAP Case Study

• Delegates, in small Groups, will prepare and comment upon a Gap Report for a multi-national corporation.

Session 11​:  Measuring Risk – Duration & Convexity

• Macaulay Duration
• Modified Duration
• The Convexity Adjustment
• Hedging with Duration & Convexity
• Duration Gap of Equity
• Earnings versus Shareholder Value
• Derivatives and Duration

Session 12:  Worked Example of Bond Portfolio Hedging

• Delegates will work through an example of immunising a Bond Portfolio.

Session 13:  Overview of Interest Rate & Currency Derivative Products

• The Cashflow Approach
• Analysing Derivatives
• Interest Rate Futures
• Interest Rate Swaps
• Advantages versus Disadvantages
• Derivatives in Gap Analysis
• Using Derivatives in A/L Management

Session 14:  Derivative Products – Valuation Techniques

• Time Value of Money
• Zero Coupon Yield Curves
• Par Values
• Implied Forwards & Futures
• Creating Discount Factors
• Fair versus Market Value
• Practical Examples

Session 15:  Creating & Using Discount Factors

​Delegates, in small Groups, will build a set of discount factors and value a number of cashflows using simple arithmetic techniques.

Session 16:  Capital Allocation

• Approaches to Optimisation
• Efficient Use of Capital
• Basel II
• The Implications of Basel lll
• Risk Adjusted Approaches
• Economic Value of Equity (EVE)
• RAROC
• RORAC
• RAPM
• Value-At-Risk (VaR)
• The Regulator’s View
• The Current Environment

Session 17:  Credit Derivatives

• Product Overview & Characteristics
• Understanding the Price of Credit Risk
• Asset Swaps & Credit Risk Defined
• Types of Products
• Total Return Swaps
• Credit Default Swaps
• Credit Linked Notes
• Advanced Structures
• Spread Products
• Basket & Index Products
• Regulatory versus Economic Capital

Session 18:  ​Measuring Risk – Simulation Techniques

• Rate Shocks
• Simple Simulation
• Monte Carlo Approach
• Virtual Balance Sheets

Session 19:  ​Case study

• Delegates will use a typical set of Balance Sheet Risk Reports to assess the implications and effectiveness of a hedge.

Session 20:  ​Case study results

• Delegates will present their decisions to the total Group including the justifications for their decision.

Case study – Additional analysis

• Path Risk Analysis
• Benefits of Simulation
• Risk Profiles
• Probability Analysis
• Embedded Options

Session 21:  Case Study – A worked example

• Delegates will assume the role of an ALCO and will be required to approve a hedging strategy.

Delegates will gain specialist technical knowledge, modern techniques and critical behaviours relating specifically to

• The governance and importance of cash management
• The options available for managing cash
• The nature of the environment and solutions available
• The role of treasury with regard to cash management
• The problems of models and behavioural data

Delegates who complete the course will receive a Certificate with equivalent CPD/CPE credits via email; and for those who require an assessment as a demonstration of competency via training a 20 multiple-choice questions and answers quiz, remotely invigilated with results report and 1 resit, is available at no additional charge when requested at time of reservation

Highly interactive expert-led intensive presentation, Q&A, group real-time in-depth case studies, regulation and discussion supported by key principles and theory. The virtual learning platform uses safe, industry preferred encrypted Cisco WebEx to optimize live face-to-face visual interaction, discrete chat, for polling and quizzes.

(An invitation via email with access link is included for all participants.)