Training on Treasury Management Best Practices

Module 1: Overview of Treasury Function

• The concept and responsibilities of the treasury function

• The role of the treasury and treasurer:

  • Raising capital

  • Managing bank relationships

  • Money management

  • Managing (corporate) risks

• Treasury organization and structure

• A treasury control framework

• Treasury performance management

• Case Study: Analyze the treasury structure and functions of a multinational corporation, focusing on how the treasurer manages capital, bank relationships, and corporate risks.

• Practical Exercise: Map out a treasury control framework for a sample company and propose key performance indicators for treasury performance.

Module 2: Cash & Liquidity Management

• Cash management objectives

• Working capital management

• Managing and accelerating collections

• Ratio analysis for decision making

• Cash flow forecasting:

  • Purpose of cash flow forecasting

  • Types of forecasts

  • The forecasting processes

  • Forecasting methods

• Case Study: Evaluate a company’s cash flow forecast and working capital management strategy, identifying gaps and recommending improvements.

• Practical Exercise: Prepare a short-term cash flow forecast for a hypothetical company using multiple forecasting methods.

Module 3: Treasury Funding and Investing

• Managing short-term borrowing

• Long-term debt financing

• Short-term interest rates versus long-term interest rates

• Loan agreements and covenants

• Credit rating agencies

• Bonds as a tool for long-term investing and funding

• Managing short-term investments

• Long-term equity investments and stocks

• Equity valuation techniques

• Case Study: Analyze the funding and investment strategy of a listed company, including short-term and long-term instruments, and evaluate its equity investment decisions.

• Practical Exercise: Calculate expected returns on different treasury investment options and assess risk exposure.

Module 4: Treasury Policies and Procedures

• Bank accounts and financial services authority policy

• Payments policy

• Collection and concentration policy

• Regulatory compliance policies

• Regulatory requirements

• Internal policies

• Service provision

• Treasury systems policy

• Case Study: Review a company’s treasury policies and procedures, identifying compliance gaps and suggesting policy improvements.

• Practical Exercise: Develop a sample treasury policy manual covering cash, collections, and payment procedures.

Module 5: Risk Management & Best Practices

• Why manage financial risk?

• Principal treasury related financial risks

• The management of financial risks

• Currency Risk Management

• Best practices in managing treasury risks

• Case Study: Evaluate a real-life scenario of currency and interest rate risk faced by a multinational company and propose risk mitigation strategies.

• Practical Exercise: Develop a treasury risk management plan that addresses currency, interest rate, and liquidity risks for a sample organization.