Housing Treasury Financing Risk. B4: Treasury skills, training and key competencies. Development Director Association of Corporate Treasurers (ACT)

Transcription

1 Housing Treasury Financing Risk B4: Treasury skills, training and key competencies Speaker: Chair: James Lockyer Development Director Association of Corporate Treasurers (ACT) Deepak Chandra Head of Treasury bpha

2 Treasury Skills, Training & Key Competencies NHF Housing Treasury Financing Risk Conference 2013 James Lockyer Development Director, ACT 23 October 2013

3 What is the ACT? A chartered professional body established 1979 A global community of professionals engaged in treasury and advanced business finance The voice of corporate treasury speaking for the treasury profession and financial managers in the Real Economy An education provider qualifications, examinations and training for those working in treasury, risk and corporate finance worldwide. 3

4 What does the ACT mean by corporate treasury? The international business of strategic financial management The interface between the company and financial markets A specialist discipline, key in determining the financial future of a business Strategically, Corporate treasury asks 3 critical questions: 1. How do we decide what to invest in? What is the business strategy? 2. How do we raise the money to make those investments? What is our financial strategy and policy? 3. How do we control risk in the organisation? Tactically, Treasury can be split into 5 core elements: Capital markets and funding Cash and liquidity management Corporate financial management Financial risk management Treasury operations and controls 4

5 Change in customer threat or opportunity? More complex relationships Opportunity to focus, sell Balance of Charity / NFP and For-Profit activities Why diversify? What s the investor need? Diversification doesn t necessarily reduce risk What are core strengths / USPs? Core strengths vs diversification Housebuilding? For which sector? Service provider? Particular expertise? Other What s the competition? Look outside UK? What is the Business Strategy? 5

6 Depends on the strategy Historically based around housebuilding and a single customer Capital structure? Consider equity as well as debt? Hybrids? Hold cash? Debt considerations Debt is long term, fixed rate GBP still appropriate? Debt providers single source or multi source?? Ancillary funding Working capital Derivatives MTM How do we fund the business? 6

7 Change = Uncertainty = Opportunity / Threat RM framework Take advantage of opportunities Avoid / transfer / retain threats Governance overlay tone at the top Treasury financial risk specialists But financial risk management impacts and is impacted by the business Integrated approach essential How do we manage the risks? 7

8 Risk, Return, Governance & Control 24/10/2013 8

9 Some immediate treasury issues 1 Liquidity risk management Need multiple sources of funds new providers Funding / maturity plan Increase in ancillary funding needs? Change certainly Accounting changes and effect on covenants, perceptions Cash management Multi customer complexities Credit control Churn Financial risk management Revisit interest rate risk management policy? Counterparty risk Impact of regulation Tech issue future of Libor 9

10 Political risk Overall the State derisking => social housing providers Social housing profiteers? Tax (Global accounts raw rate 1%) Pricing & CPI / RPI basis change Reversal / change to welfare reform, Affordable Rent, Decent Homes Standard, grant rates Pace of change Faster than ever Innovation Experience decreasingly useful in anticipating / coping with the future Competitive landscape Some immediate treasury issues 2 10

11 Tomorrow s provider could look like 11

12 ACT membership Creating advantage Membership for individuals helping to: Sustain expertise Access support Develop networks Build confidence Benefit from: Use of relevant designatory letters (FCT, MCT, AMCT, CertITM) Access to learning and CPD resources including technical updates, briefing notes, course materials, webinars Free subscription to THE TREASURER magazine Technical advice; informed and unbiased guidance Preferential rates at conferences, events and training courses Member-only events and regional group meetings 12

13 ACT professional qualifications Building futures ACT teaches, examines and qualifies treasury professionals through its internationally-recognised suite of qualifications Respected worldwide as the benchmark in treasury education ACT Certificates AMCT Diploma MCT Advanced Diploma Part-time study anywhere Online distance learning course materials, online forums, video tuition Face-to-face teaching and revision courses (optional) Tuition schools in UK and overseas Two enrolment intakes each year March and September 13

14 ACT qualifications and membership route FCT MCT plus senior level experience MCT Advanced Diploma Two exams, one project AMCT Diploma Modular syllabus comprising 3 stages, exemptions available AMCT Stage 3 Select 2 electives to complete AMCT or take as individual certificates CertCFF Corporate Finance and Funding CertFMM Financial Maths and Modelling CertICM International Cash Management AMCT Stage 2 Compulsory for AMCT or can be taken as individual certificate CertITM Certificate in International Treasury Management CertRM Risk Management Level of ability Highest level senior finance professional Fellow of the ACT Advanced treasury knowledge and strategic decision making proven ability and expertise Member of the ACT Breadth and depth of treasury knowledge acknowledged standard of technical competency Associate Member of the ACT Specialist skills technical depth of knowledge in key treasury and finance disciplines ACT Faculty Member Broad practical understanding of treasury ACT Faculty Member AMCT Stage 1 Can be taken as part of AMCT or as individual certificate Fundamentals of financial and management accounting, economics, corporate tax and law for business CertFin Certificate in Financial Fundamentals for Business Accountants are exempt from Stage 1 14

15 Any Questions? on Twitter ACT Website (register for updates on Events etc) Association of Corporate Treasurers LinkedIn group Association of Corporate Treasurers on Facebook Professional qualifications NHF Housing Treasury Financing Risk Conference 2013