Introduction

This course is designed to enable delegates to make corporate financial decisions in an increasingly volatile international marketplace in order to increase profitability, maintain liquidity and reduce financial risk.

The module follows the growth of a company from the development of a strategic corporate financial plan, the raising of finance, the preparation and management of budgets to support the plan, the management of financial risk and ultimately the measurement and evaluation of performance.

Major highlights of the course include its:

• Practical nature will ensure development of transferable skills as well as the knowledge and understanding

• Relevance in today’s marketplace with a focus on major financial issues

• An international outlook, enabling company’s/delegates to compete on a global scale and meet international standards

• Breadth and depth of coverage, making the course suitable for both finance and non-finance personnel

• Supporting material. Delegates will receive a detailed set of handouts, reading, case studies and examples in both hard and soft format which will enable them to review/use the topics covered at a later date.

Objectives 

This seminar will enable delegates to:

• Develop effective corporate financial plans aimed at maximizing return and minimizing risk

• Evaluate the various methods of finance and make successful capital investment decisions

• Prepare, manage and control budgets to support the corporate financial plans

• Identify and manage financial risk effectively

• Measure and manage performance effectively

• Create opportunities for your personal development and increased financial awareness

Target Audience

• Senior executives and decision-makers responsible for financial strategy
• Finance managers, financial controllers, and treasury professionals
• Corporate finance and investment analysts
• Business development and strategic planning professionals
• Risk management and internal audit professionals
• Management accountants and budgeting specialists
• Project and operations managers involved in financial planning
• Entrepreneurs and business owners managing growth and funding decisions
• Non-financial managers needing strong corporate finance understanding
• Professionals involved in budgeting, forecasting, and performance evaluation
• Individuals seeking practical and global-level corporate finance skills

 Outlines

Day 1

Corporate Financial Planning

• Strategic Planning

• The Objective of the Firm – meeting Shareholder & Stakeholder Objectives

• Agency Theory – the relationship between Shareholders & Management

• Creative Accounting and the Case of Enron

• Preparing a Strategic Plan

• Financial Management & Financial Planning – the Scope, Role & Responsibilities of Financial Management

• Preparing a Financial Plan – The Master Budget

• Forecasting Future Cash-flows

  • Time Series Analysis

  • Correlation & Regression

• Financial Modelling

Day 2

Financing the Plan

• Sources of Finance – Long Term & Short Term

• Evaluation of the Types of Finance

  • Equity Finance

  • Debt Finance

  • Hybrid Finance & Financial Engineering

• The Dividend Decision

• The Cost of Capital

• Weighted Average Cost of Capital (WACC)

• Capital Asset Pricing Model (CAPM)

• The Capital Investment Process

• Payback

• Accounting Rate of Return (ARR)

• Net Present Value (NPV)

• Internal Rate of Return (IRR)

• Capital Investment Appraisal

• Capital Rationing

Day 3

Preparing & Managing Budgets to support the Financial Plans

• Definition of Budgets

• The Budgetary Process

• Types of Budgets

  • Fixed

  • Flexible

  • Incremental

  • Zero Based

  • Activity-Based Budgets

• The Purpose/Benefits & Problems/Limitations of Budgets

• Setting/Implementing Effective Budgets - Eliminating the Problems

• Budgetary Control

• Responsibility Accounting and Absorption Costing

• Activity-Based Budgeting/Costing (ABB, ABC)

• Variance Analysis

• Cost Behaviour & Break-Even Analysis

• Sensitivity/What-If Analysis

• What-If Analysis combined with Du-Pont Analysis

Day 4

Managing and Controlling Cashflow to support the Financial Plan

• Cash versus Profit

• The Cash Conversion Cycle

• Calculating and Managing the Cashflow Cycle

• Cash Flow Ratios

• Working Capital

• The Cost of Maintaining Working Capital

• Maintaining the Optimum level of Working Capital

• Working Investment Ratios

• Preparing a Monthly Cash Flow Forecast

Day 5

Managing Financial Risk

• Risk Management

• Types of Risk

• Identifying Risk – SWOT Analysis

• The Major Quantitative & Qualitative Risks Facing Companies

• Establishing a Risk Management Strategy

• Financial Risk Management & Hedging Techniques

• Financial Risks

• Managing Exchange Rate & Interest Rate Risk

• Derivatives

  • Forwards

  • Futures

  • Options

  • Swaps

• Risk Management Glossary of Terms