Introduction

Effective treasury and risk management is essential for maintaining financial stability, ensuring adequate liquidity, optimizing funding, controlling financial exposures, and supporting strategic business decisions.

The Treasury and Risk Management program, designed by Global Horizon Training Center, provides participants with a comprehensive understanding of modern treasury operations and the financial risks associated with liquidity, cash flows, funding, foreign exchange, interest rates, counterparties, and financial markets.

The program combines treasury principles with practical risk-management techniques, enabling participants to strengthen cash and liquidity management, evaluate financing alternatives, manage market exposures, establish effective controls, and improve treasury decision-making.

Course Objectives

By the end of this program, participants will be able to:

• Understand the strategic role and responsibilities of the treasury function

• Apply effective cash and liquidity management techniques

• Develop and interpret cash-flow forecasts

• Optimize working capital and short-term funding

• Evaluate different sources of corporate financing

• Identify and assess major financial and treasury risks

• Measure foreign exchange and interest-rate exposures

• Apply appropriate financial risk mitigation and hedging strategies

• Understand the use of forwards, futures, swaps, and options

• Manage counterparty and credit exposures within treasury operations

• Establish effective treasury policies, controls, and limits

• Strengthen treasury governance and operational risk controls

• Develop meaningful treasury and risk-management KPIs

• Support strategic financial decisions through treasury analytics

Target Audience

This program is designed for:

• Treasury Managers and Officers

• Finance Managers

• Chief Financial Officers and Finance Executives

• Financial Controllers

• Cash Management Professionals

• Risk Managers and Analysts

• Corporate Finance Professionals

• Accountants and Senior Accountants

• Banking and Investment Professionals

• Financial Planning and Analysis Professionals

• Internal Auditors

• Professionals involved in liquidity, funding, and financial risk management

Outlines

Day 1 – Strategic Treasury Management and the Treasury Function

The Modern Treasury Function

• Understanding the role of corporate treasury

• Strategic versus operational treasury responsibilities

• Treasury organizational structures

• Centralized versus decentralized treasury

• Treasury interaction with finance, accounting, procurement, and operations

• Treasury's role in supporting corporate strategy

Core Treasury Activities

• Cash and liquidity management

• Funding and financing

• Banking relationship management

• Investment of surplus cash

• Foreign exchange management

• Interest-rate management

• Financial risk management

• Treasury reporting and performance monitoring

Financial Markets and Treasury

• Understanding money and capital markets

• Financial-market participants

• Key market instruments

• Short-term versus long-term instruments

• Understanding yield and market pricing

• Impact of economic conditions on treasury decisions

Treasury Governance

• Treasury policies and procedures

• Delegation of authority

• Treasury limits

• Segregation of duties

• Authorization and approval structures

• Treasury governance framework

Practical Exercise: Mapping treasury responsibilities, risks, controls, and key stakeholders.

Day 2 – Cash, Liquidity and Working Capital Management

Cash Management Fundamentals

• Understanding corporate cash flows

• Cash positioning

• Bank-account structures

• Managing cash balances

• Optimizing available cash

• Managing surplus and deficit positions

• Reducing idle cash

Cash-Flow Forecasting

• Purpose of treasury cash-flow forecasts

• Short-, medium-, and long-term forecasting

• Direct and indirect forecasting methods

• Identifying major cash-flow drivers

• Building cash-flow assumptions

• Scenario and sensitivity analysis

• Managing forecast uncertainty

• Measuring forecasting accuracy

Liquidity Management

• Understanding liquidity risk

• Determining minimum liquidity requirements

• Liquidity buffers and reserves

• Sources of short-term liquidity

• Managing unexpected cash requirements

• Liquidity stress testing

• Developing contingency funding plans

Working Capital Optimization

• Understanding the cash conversion cycle

• Accounts receivable management

• Accounts payable management

• Inventory implications for treasury

• Days Sales Outstanding (DSO)

• Days Payable Outstanding (DPO)

• Improving working capital efficiency

Practical Exercise: Preparing a rolling cash-flow forecast and identifying potential liquidity gaps.

Day 3 – Funding, Investments and Financial Risk Assessment

Corporate Funding Strategies

• Understanding funding requirements

• Short-term versus long-term financing

• Bank loans and credit facilities

• Revolving credit facilities

• Bonds and debt instruments

• Commercial paper

• Internal versus external financing

• Evaluating funding alternatives

Cost of Funding

• Interest rates and borrowing costs

• Fixed versus floating-rate financing

• Credit spreads

• Fees and transaction costs

• Effective cost of borrowing

• Funding diversification

• Refinancing and maturity risk

Managing Surplus Cash

• Treasury investment objectives

• Security, liquidity, and return

• Short-term investment alternatives

• Deposits and money-market instruments

• Investment maturity considerations

• Investment limits and counterparty considerations

Financial Risk Identification

• Market risk

• Liquidity risk

• Credit and counterparty risk

• Foreign exchange risk

• Interest-rate risk

• Refinancing risk

• Operational treasury risk

Risk Assessment Framework

• Risk identification

• Risk measurement

• Risk prioritization

• Risk appetite and tolerance

• Establishing exposure limits

• Risk monitoring and reporting

Case Study: Evaluating funding alternatives and identifying the associated treasury risks.

Day 4 – Foreign Exchange, Interest Rate Risk and Hedging

Foreign Exchange Risk Management

• Understanding foreign exchange markets

• Transaction exposure

• Translation exposure

• Economic exposure

• Identifying net currency positions

• Measuring FX exposure

• Impact of exchange-rate movements on cash flow and profitability

FX Risk Management Strategies

• Natural hedging

• Netting and matching

• Leading and lagging

• Currency diversification

• Financial hedging

• Establishing an FX hedging policy

Interest Rate Risk

• Understanding interest-rate exposure

• Fixed versus floating-rate exposure

• Repricing and maturity gaps

• Impact of interest-rate movements

• Measuring interest-rate sensitivity

Treasury Hedging Instruments

• Forward contracts

• Futures

• Options

• Interest-rate swaps

• Currency swaps

• Caps, floors, and collars

• Selecting appropriate hedging instruments

• Understanding hedge costs and benefits

Hedging Strategy and Control

• Determining hedge objectives

• Hedge ratios

• Hedging horizons

• Monitoring hedge effectiveness

• Avoiding speculative treasury activities

• Documentation and authorization

Practical Exercise: Developing FX and interest-rate hedging strategies for different exposure scenarios.

Day 5 – Treasury Risk Controls, Governance and Performance Management

Counterparty and Credit Risk

• Understanding counterparty exposure

• Assessing banks and financial counterparties

• Credit limits

• Concentration risk

• Settlement risk

• Monitoring counterparty quality

• Diversification strategies

Treasury Operational Risk

• Payment and settlement risks

• Fraud risk

• Unauthorized transactions

• Process failures

• Cybersecurity considerations in treasury

• Business continuity

• Treasury control environment

Internal Controls

• Front, middle, and back-office responsibilities

• Segregation of duties

• Deal authorization

• Transaction confirmation

• Reconciliation

• Exception management

• Audit trails

• Treasury documentation

Treasury Risk Reporting

• Designing treasury dashboards

• Liquidity reporting

• Cash-flow variance reporting

• FX exposure reporting

• Interest-rate exposure reporting

• Debt maturity profiles

• Counterparty exposure reports

• Reporting to senior management

Treasury KPIs

• Cash forecast accuracy

• Liquidity coverage

• Cost of funding

• Return on surplus cash

• Working capital indicators

• Hedging effectiveness

• Bank and transaction costs

• Counterparty concentration

• Treasury operational efficiency

Developing an Effective Treasury Framework

• Integrating treasury with enterprise risk management

• Treasury risk policies

• Establishing limits and escalation procedures

• Stress testing and scenario analysis

• Technology and treasury management systems

• Automation and data analytics

• Strengthening treasury decision-making

• Continuous improvement of treasury operations