FM032: Certificate in Treasury Management FM032 Rev.001 CMCT COURSE OUTLINE Page 1 of 5
Training Description: It is essential for every organization to effectively utilize its funds and manage its exposure to key risks arising from fluctuations in interest rates and foreign exchange rates. The certificate in treasury management course first considers the important roles for corporate treasury in managing cash flow and liquidity, working capital, accessing debt financing and managing capital. This course provides professionals with a sound understanding of tools and techniques required for effectively managing the various aspects of treasury risk. Training Objective: By the end of the training, participants will be able to: Enhance their knowledge of corporate treasury management and the treasury function Apply up-to-date practices covering asset liability management and cash management techniques Develop a practical understanding of financial markets and their products Recognize and correctly measure financial instruments under International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) Critique their understanding of fair value measurement and its effect on financial instruments presentation Explain hedging and speculation, and distinguish between the different hedging techniques applied by the treasury function Training Designed for: This course is intended for all the Treasury Professionals, Financial Professionals, Finance Managers, Corporate Controllers, Financial Controllers, Chief Accountants, Accounting Managers, Senior Accountants, Banking Professionals, Back-office Managers, Traders and Dealers, Finance Regulators and Corporate Business Professionals. Training Program: DAY ONE: PRE-TEST Introduction to the Treasury Function Definition and responsibilities of treasury function Treasury professionals role Risks surrounding the treasury function: o Credit and interest rate risk o Liquidity risk and exchange rate risk Cash and Liquidity Management Asset and liability management versus treasury management Understanding the cash cycle Reasons for holding cash: transaction, precautionary and speculative FM032 Rev.001 CMCT COURSE OUTLINE Page 2 of 5
The optimum cash balance: o Baumol s model o Miller-Orr model Managing and accelerating collections Managing and decelerating disbursements Ratio analysis for decision making o Accounts receivable turnover o Inventory turnover o Accounts payable turnover o Cash conversion cycle DAY TWO: Corporate Finance Theory The time value of money Steps in investment management process Holding period return calculation for fixed income securities Risk and return concepts o Calculating mean of returns o Variance and standard deviation for an individual security o Covariance and correlation of returns for two securities o Interpreting correlation of returns o Variance and standard deviation for a portfolio of two or more securities o Covariance and correlation of returns for a portfolio of securities Fixed Income Securities and Bonds Valuations The money market and instruments The debt market o Bonds and Sukuk Risks associated with the debt market o Credit risk o Prepayment risk and interest rate risk Bonds valuation techniques Price and maturity relations DAY THREE: Stock Market and Equity Valuations The equity instruments: IPOs, seasoned offerings and private equities Holding period returns for equity securities Equity valuation techniques o Discounted cash flow model o Multiplier model DAY FOUR: Accounting for Financial Instruments Classification of instruments o Held-To-Maturity debt securities (HTM) FM032 Rev.001 CMCT COURSE OUTLINE Page 3 of 5
o Trading Securities (TS) o Available-For-Sale securities (AFS) o Fair Value Through Profit and Loss Option (FVTPL) Initial and subsequent measurement Transfer between categories De-recognition of financial instruments DAY FIVE: Briefing on Derivatives Markets, Hedging and Speculation Definition of derivatives: forwards, futures, options and swaps Difference between hedging and speculation General internal hedging strategies o Investing in the home currency o Creating a natural hedge o Currency diversification o Mark-ups o Counter trades and currency offsets Course Conclusion POST-TEST and EVALUATION Training Requirement: Hand s on practical sessions, equipment and software will be applied during the course if required and as per the client s request. Training Methodology: This interactive training course includes the following training methodologies as a percentage of the total tuition hours:- 30% Lectures, Concepts, Role Play 30% Workshops & Work Presentations, Techniques 20% Based on Case Studies & Practical Exercises 20% Videos, Software & General Discussions Pre and Post Test Training Certificate(s): Internationally recognized certificate(s) will be issued to each participant who completed the course. Training Fees: As per the course location - This rate includes participant s manual, hand-outs, buffet lunch, coffee/tea on arrival, morning & afternoon of each day. FM032 Rev.001 CMCT COURSE OUTLINE Page 4 of 5
Training Timings: Daily Timings: 07:45-08:00 Morning Coffee / Tea 08:00-10:00 First Session 10:00-10:20 Recess (Coffee/Tea/Snacks) 10:20-12:20 Second Session 12:20-13:30 Recess (Prayer Break & Lunch) 13:30-15:00 Last Session For training registrations or in-house enquiries, please contact: Aisha Relativo: aisha@cmc-me.com Tel.: +971 2 665 3945 or +971 2 643 6653 Mob.: +971 52 2954615 Training & Career Development Department FM032 Rev.001 CMCT COURSE OUTLINE Page 5 of 5