UK Europe EMEA GCC Time Zones
CPEs: 40
Instructor: Risk Reward Faculty
Level: Intermediate
Tuition: £4,995.00
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NEW Cash, Liquidity, and Balance Sheet Management TR0039

Location: UK Europe EMEA GCC Time Zones

First Date: April 15 - 19 2024

Duration: 5 days

Programme Director: Risk Reward Faculty

All Dates & Locations
Venue Details

Experience the highly interactive expert-led social learning through Virtual Classroom via Cisco WebEx from Risk Reward.

All our 2024 Live, on-site and Live Virtual Classroom events feature shared (or discrete) live chat between delegates and the expert, participate in topical surveys, polling questions, group exercises and case studies for a tried -and- true engaging and gratifying learning experience.

Need to bring this course in-house, train your team or 1:1? Simply contact us for significant cost savings and dates best suited to meet your specific needs.

Agenda Highlights

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

Session 2:  ​Liquidity Management & Default

Session 3:  Cash & Short-Term Assets ​

Session 4:  The Time Value of Money Concept

Session 5:  Time Value of Money Exercises

Session 6:  Short Term Investments / Borrowings

Session 7:  ​Money Markets Exercises

SESSION 8:  ​Assets, Liabilities & The Balance sheet

Session 9:  ​Measuring Risk – GAP Analysis

Session 10:  ​GAP Case Study

Session 11Measuring Risk – Duration & Convexity

Session 12:  Worked Example of Bond Portfolio Hedging

Session 13:  Overview of Interest Rate & Currency Derivative Products

Session 14:  Derivative Products – Valuation Techniques

Session 15:  Creating & Using Discount Factors

Session 16:  Capital Allocation

Session 17:  Credit Derivatives

Session 18:  ​Measuring Risk – Simulation Techniques

Session 19:  ​Case study

Session 20:  ​Case study results

Case study – Additional analysis

Session 21:  Case Study – A worked example


Cash is King, or so we are told in business management.  Accordingly, cash management techniques are critical to a firm ensuring that it maintains adequate liquidity to meet its funding needs while also maximising return.  This timely course looks at the key techniques in cash management as well as the main solutions available providing a useful insight into the challenges currently faced in this market.

Who Should Attend

Designed primarily for senior management, finance, treasury and risk management staff and executives yet recent delegates include those from legal, IT, HR and software providers.

Additional Course Information

What Does It Cover?

Session 1Budgets, 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)
  • 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.
Learning Objectives

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

Social Learning & Methods

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.)


NEW Cash, Liquidity, and Balance Sheet Management

Course Fee

Apply 10% discount code RISK10 by December 15, 2023 at check-out

Course Fee (per person):
GBP £4,995.00 (+ UK VAT when applicable)

Number of delegates:

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