Treasury Risk Management For Banks & Corporates

Treasury management always has carried a high importance, and in today’s environment, the challenges have even become far greater. For that reason, attending this training course, will help you build a thorough understanding of liquidity management, treasury systems, and selection processes, and further identifying how they are implemented.

Benefits of taking this training

You will gain knowledge of a most overlooked back-end processes Including treasury systems into the treasury management training, makes it a more informed subject. You will see what foreign currency mismatches mean to a balance sheet. You will understand how important liquidity is for organizations.

Know about your trainer

Our consultant has worked, since 1978 for international banks and institutions, covering international money-, foreign exchange-, and capital markets; as trader, senior trader, Chief dealer, Group Treasurer, and a Senior Consultant. He resided during his career in the following countries; The Netherlands, Singapore, Australia, USA, Saudi Arabia, Germany, Luxembourg, and Qatar, and currently in The Philippines. He managed large portfolios, and has set-up and managed large treasuries.

COURSE OUTLINE

  • DAY ONE


  • Fraud

  • A close look into the various areas within organizations that may be susceptible to fraud. There will be case studies presented.


  • Topics

  • • Fraud Risk
    • IT Risk
    • FX Risk
    • GAP Risk
    • Pricing risk
    • Reputational risks
    • Legal risk
    • Customer risk
    • Money laundering
    • Transactional risk
    • Operational risk
    • Case studies


  • Treasury Risk

  • Different aspects are covered with regards to the transaction execution and processes.


  • Topics

  • •Limits
    •Transaction handling
    •Derivatives
    •Offered solutions
    •Case studies


  • Risk measures

  • Introduction to the most common used risk measures in financial institutions and corporations.


  • Topics

  • • Modes of additive depletion Grease Application and Performance
    • Grease applications requiring high and low consistency
    • Causes of grease separation , Multipurpose greases
    • Performance and application of specific grease thickeners
    • High temperature greases
    • Coupling greases


  • • Controlling of limits • Value at Risk (VaR)
    • Var-Covariance
    • Earnings at Risk
    • Risk Policy and strategy
    • Illustration risk measures

  • Liquidity risk management

  • This session will provide insight to cash flow- (liquidity-) management), and a number of topics will be discussed, but taking a practical approach for this subject. Information flows containing errors, may cause disruption in particular ratios. We will identify them and provide possible solutions for these type of issues. Regulatory ratios will touch upon lightly, but necessary for the application of liquidity management. The case studies and exercises will cover some of those uses.


  • Importance of Liquidity

  • The importance, and how we pro-actively manage liquidity, will be demonstrated and how critical it could be for the organization.


  • Usefulness of Liquidity

  • We will cover the usefulness, and how its applied under different situations. A practical approach in managing cash flows.


  • Topics

  • •Looking into the general objectives
    • Introduction to Liquidity Ratio (LCR) and Net Stable Funding Ratio (NSFR)
    • Required information creating an efficient liquidity management process
    • Solving cash flow issues, bearing in mind regulatory limitations
    • Cash flow exposure types
    • Liquidity risk and current ratio
    • Liquidity Management- and Contingency Plan
    • Liquidity Buffer
    • Case studies and exercises


  • Money Markets and Foreign Exchange

  • Introduction to the international money markets, and its products, and the usage of it. Foreign exchange markets are dynamic. The usage and benefits using the various products that are available will be discussed.


  • Topics

  • • MM products
    • FX products
    • Case studies

  • Debt Capital Markets (DCM)

  • The choices available to corporations using the DCM, and for financial institutions.

  • Topics

  • • The steps to issuance
    • What products/instruments are available <•br> • How to select the best option.

  • Corporate financing

  • Funding is crucial to any business, and the various options that are available. We will discuss the products and how to determine what selections to make.

  • Topics

  • • Structured finance
    •Short- and long term planning
    • Capital financing
    • Project financing
    • Case studies

  • DAY TWO


  • Treasury systems and accounting implicationst

  • The management of liquidity, can be most effective when using a treasury system, and it contains fully automated accounting. The accounting implications is not always well understood, especially when there is an automated process. We will identify some of those problems that may arise.


  • System selection

  • We will discuss the process of selecting a treasury system for an organization, the best way to approach it, and provide a forward view.


  • System Implementation

  • For any successful implementation, one should consider that a lot of commitment within the organization must form part of an implementation. We will dive into the details of the method that will bring us to the desired end- goal. One will also realize the importance understanding systems, will help to protect against misconceptions.


  • Accounting ImplicationsAnalyzing Lubricant Degradation

  • Every instrument or product within systems, and fully automated processes, will be set-up, and activities on the system by users, when the system is live, will create accounting implications. We will discuss and demonstrate what is needed to set-up properly, and also how we may find out errors and correct them in the system.


  • Topics

  • • Gathering the requirements
    • Selection process of treasury systems
    • General ledger and integration
    • Implementation process
    • Vendor and client responsibilities
    • User Acceptance testing and “go-live”
    • Problem solving of system related accounting issues
    • Case studies and exercises



  • Hedging

  • Hedging is very important for organizations, whether these are cash flow-, foreign exchange-, equities (shares)-, commodity, or funds/investments (real estate) exposures. We will explore hedging and how we make use of it in the practical environment.


  • Hedging usefulness

  • Eliminating risks is important for most organizations, and hedging is an act that assists in removing, or reducing those risks to an acceptable level. We will learn about the usefulness of this tool, and illustrate this through case studies and exercises.


  • Topics

  • • Wrong hedging and how to correct it
    • Building the scenario and hedge strategies
    • Documentation concept and approval cycle
    • Posting of the transaction
    • Case studies and exercises



  • Hedge accounting (high level)

  • Hedge accounting is a method of accounting, where entries for an asset or liability and the opposing hedge are treated as one. IAS 39 has been replaced by IFRS 9, but IAS 39 still can be applied, if selected. We discuss some of the changes in hedge accounting, and what we practically can do with it.


  • When to use hedge accounting

  • Hedge accounting is not mandatory, but will help to manage fluctuations of the profit and loss accounts. We will show when it makes sense using hedge accounting.


  • Topics

  • • Fair value hedge
    • cash flow hedge
    • hedge of a net investment in a foreign operation as defined in IAS 21
    • Hedge effectiveness
    • Formal designation and documentation
    • Economic relationship
    • Credit risk
    • Case studies and exercises

    Technical Trading

    Introduction to Fibonacci

    Fibonacci concept is universal and can be observed everywhere, and It was discovered and developed by Fibonacci by one of the most talented mathematicians in early ages. Fibonacci concept applies to our everyday life, even when we do not know it.

    Fibonacci concept for trading

    For trading this is a crucial part to use this concept for profitable trading. We will cover the usage of Arcs, Angles and retracements, that is successfully employed in trading currencies, interest rate products, commodities and shares alike. This method is to be used with in conjunction with other technical indicators, supporting the decision making process.


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