Course Overview

Treasury is the core department of any bank and financial organization. Every financial organization and bank faces risks related to treasury like liquidity.

What do treasury managers do?

It is the key responsibility of the Treasury Risk Manager to mitigate the risk and support other employees by adhering to IFRS compliance. Among other risks, liquidity should be the top priority of the relevant employees because any institution’s survival solemnly depends on it. All other potential risks such as interest rate fluctuation, operational risks, and market issues cannot be uprooted for good; instead, these risks must be appropriately monitored, measured, and controlled with the aim to increase profitability.

What are treasury management solutions?

Zoe Talent Solutions empowers treasury professionals and managers to use various strategies like hedging and funding to respond to risks associated with market scenarios and balance sheets. This covers all the critical aspects, topics, and strategies in treasury risk management and ultimately provides you the ability to become a treasury risk manager and perform key responsibilities of this post. In addition, your skills will be polished and groomed; therefore, you will have the opportunity to showcase your abilities in reputable financial organizations and banks.

Course Objectives

The fundamental objective of this course is to empower professionals to-

• Assess and analyse all the possible risks present and arising from balance sheets in the shape of liabilities and assets
• Understand the tools and use them efficiently to measure all the potential risks as per ever-changing market scenarios
• Know the applicability of the risk management strategies and instruments and the best time to practice them
• Know the concept of liquidity, liquidity buffers, management of these buffers, liquidity risks beyond deposits, and basic loans in depth
• Use liquidity risk metrics suite to assess the scope of liquidity risk in banks
• Formulate and evaluate the tests of stress
• Comprehend and assess the scope of controls of liquidity risk along with lending outcomes
• Comprehend the formulation of various policies of funding for trading books and banks
• Appreciate the Asset Liability Committee’s (ALCO) role in banks and its structure of governance
• Grasp the pricing of the internal funds’ transfer concept and analyse the application of a specific model to a particular institution type

Training Methodology

Zoe Talent Solutions’ courses can be customized for the professionals being trained as per their background. Thereby, the content of each course is entirely reviewed and checked before the beginning of each session. Like all other courses, this course’s training is delivered by highly-experienced professionals from the relevant field. The participation of the professionals is made possible via projects, group activities, role-plays, etc. Apart from these activities, situational analysis, case studies, and experimental learning are vital approaches in all courses.

Zoe Talent Solutions is the mastermind of this unique model, and it is considered a vital approach to maximize the professionals’ learning. This model is known as Do–Review–Learn–Apply Model.

Organisational Benefits

The trained professionals of this course help the organizations in harvesting the following benefits:

• The informed decision-making process is improved
• All the risks in the treasury department are correctly managed to increase the profit of the organization
• Exceptional funding policies are formulated as per ongoing situations
• The organization’s treasury department is in the hands of well-trained professionals
• All of the risks and their solutions are appropriately documented
• The organization’s culture of finance is revamped with the practice of skills and knowledge
• The documentation in the treasury department complies with the IFRS standards
• The skilled professionals handle and manage potential risks like commodity price, currency, capital, interest rate, and liquidity
• Risk management strategies and approaches by trained professionals help organizations to manage risks arising from market conditions

Personal Benefits

The following benefits are garnered by the professionals who undertake this course:

• Develop and polish skills and knowledge that are useful for being a treasury professional
• Comprehend and use the advanced techniques and tools in this domain
• Develop the ability to use several software and models that will assist in making better financial decisions
• Polished skills and effective formulation and use of strategies help you to be important in achieving the organization’s primary goals
• Your presence as a risk manager or treasury professional is considered important during the decision-making process regarding finance
• As a trained professional, you collaborate effectively with other professionals and departments for forecasting, budgets, planning, investment analysis, and financial issues

Who Should Attend?

• Risk and Reg Treasury Associates are responsible for providing consultancy to clients in the Treasury Risk Management domain
• Treasury Risk Manager who analyses the risks and formulate strategies to mitigate them
• Senior Management members of an organization working in the treasury department and making decisions about minimizing risks
• Treasury Risk Analyst actively participating in the documentation
• Managers and professionals who have responsibilities related to finance
• Professionals who act upon financial decisions made by others
• Professionals eager to learn new skills in the treasury risk management domain and know about advancements in the market
• On-job professionals in Treasury and Risk management department
• Decision-makers in the domain of finance
• Professionals seeking their career in Treasury and Risk Management domain

Course Outline

Following critical areas and topics are covered in this course; these are important for any professional to become Treasury Risk Manager:

Module 1: Introduction to Treasury Management

• Introduction to Treasury Management
• Objectives of Treasury Management

Module 2: Treasury Management Functions

• Forecasting Cash
• Management of Capital
• Cash and Investment Management
• Managing Risks and formulating strategies
• Fundraising
• Granting credit
• Other functions

Module 3: Treasury Department Structure and its types

• Types of treasury department: Centralised/Decentralised
• Front Office Structure
• Middle Office Structure
• Back Office Structure

Module 4: An in-depth analysis of Liquidity and Cash Management

• Role of cash forecasts
• Preparing cash forecasts
• Investing cash surpluses for maximizing return
• Finance of short-term
• Optimum level determination of working capital management
• Group and international management of cash
• Processing cash budgets
• Controlling cash budgets

Module 5: Capital and Finance Management

• Optimization of the structure of capital for reducing the cost of capital (Weighted average cost of capital)
• The Capital Assed Pricing Model (CAPM)
• Evaluation of the capital investment (Payback, IRR, NPV)
• Internal and external rationing of capital
• Financial strategic objectives (Growth, M&A, Consolidation, Diversification, Joint ventures, and so on)
• Finance of Long-term (Buyer & Supplier Debit versus Public & Private Equity)

Module 6: Identifying Risks

• External risks
• Internal risks
• Non-financial risks
• Financial risks

Module 7: Measurement of Risks

• Value at risk
• Probability
• Standard Deviation
• Variance
• Volatility

Module 8: Determination of Strategies of Risks Management

• Probability
• Assessing impacts

Module 9: Strategies of Risks Management

• The 4 T’s Strategy (Tolerate, Terminate, Transfer and Treat)
• Internal Audit
• Internal Controls
• Credit and Counterparty risk management

Module 10: Documentation of Loan

• The typical loan transaction structure
• Issues arising before signing the contracts and solving them
• Event and covenants (default, cross-default, financial covenants, etc)
• Quasi security, security and their guarantees

Module 11: Commodity (Oil price), interest rate, and currency

• Forward Contract
• Forward Rate Agreements
• American and European calls and puts options
• Futures (Margin Payments, Market Correlation, and so on)
• Swaps: Interest rate and currency risks and advantages
• Internal tactics for foreign currency accounts
• Borrowing foreign currency