Corporate Treasury Risk Management | Simfotix
  • One Day Training Workshop
  • Two Day Traning Workshop
Master Strategic Thinking

Corporate Treasury Risk Management

18 & 19 April 2018


USD 1200

per participant


Treasury is all about managing risk. To do so Treasuries must deploy Best Practice, tools, techniques and technology in the risk management arena.

In order to succeed is closing business, commercial bankers must understand the corporate Treasury environment and be able to craft Treasury management risk management solutions that are effective and cost efficient.

This 2 day interactive workshop is design to provide Commercial Bankers in Treasury sales, product development, internal operations and marketing with an in-depth understanding of the Treasury customer's risk management world. They will learn how to walk the Treasury solution talk in order to better close business and support client requirements.

Course Objectives
  • Develop structures and processes that identify and measure Treasury objectives and value add risk KPI's
  • Use customer financial statements to have constructive discussions with Multi-national Treasurers on Treasury risk matters
  • Design policies and processes for the management of Enterprise Risk from a Treasury perspective
  • Develop solution sets for the effective management of corporate financial risk
Who Should Attend
  • Bank Treasury Service sales staff
  • Bank relationship management staff
  • Commercial product support staff
  • Wholesale marketing and product development staff
Course Outline (Day One)
Corporate View of Risk
  • Corporate risk drivers
    • Working capital
    • Global cash management
  • Corporate risk world
    • Enterprise risk
  • Derivatives
    • Solution seeking a problem
Treasury Organization
  • Treasury Objectives
    • The key factors
    • Corporate Treasury compared to Bank Treasury
  • Change in the Paradigm
    • How the financial meltdown of 2007-2008 changed Treasury
    • Investment lessons learned 2007-2008
    • What to do and what not to do
  • Regulatory Response Bank and Corporate Treasury Impact
    • EMIR
    • Basel III
    • Dodd-Frank
    • FABAR
    • FTRA
    • FATCA
  • Treasury Benchmarking and Metrics
    • Shift from P&L to Value-Add metrics

Delegate Exercise: delegates will utilize a work paper approach to discuss Treasury risk management objectives and how Treasury effectives is measured. How can banks support this process?

Working Capital Management
  • What is Working Capital
  • Treasury’s role in Working Capital management
    • Balance Sheet management
  • Working Capital Best Practices
    • Rules, tools and techniques to drive improvements
      • Worked examples
  • Working Capital metrics
    • Improve control with effective metrics
  • Integrated with cash management and cash forecast
    • Walk cash to the balance sheet and back

Delegate Exercise: delegates will utilize a case study to identify why corporate working capital is the key driver in the management of financial risk and the use of derivatives.

Global Liquidity Management
  • Liquidity management structures and techniques
    • Physical Concentration compared to Notional Pooling
  • Restricted cash countries
    • Cash optimization and control despite the barriers
  • In-House Bank
    • Organizational structure
    • Intercompany loan administration
  • Multi-lateral netting
    • How to establish a program that reduces costs and improves efficiency
  • Leading, lagging and other means to optimize cash
  • Re-invoicing
    • How to establish a program that advantages tax and foreign exchange opportunities
  • Multi-bank liquidity management
    • Follow-the-sun & reverse the sun techniques
  • Asia Pacific Regional
    • Issues
    • Tools and techniques

Delegate Exercise: delegates will utilize a case study to evaluate how to design an effective cash management solution set that is better controls currency risk.

Enterprise Risk Management
  • Objectives
  • Risk vs. Return
  • Categories of risk
    • Core vs. non-core risks
  • VaR and other models to measure risk
    • Worked examples
  • Putting a holistic process in place
    • Step by step key elements
    • COSO Framework
    • Country of residence selection
  • Governance
    • Segregation of duties
    • SOXA, Internal Audit
    • Regulatory compliance

Delegate Exercise: delegates will develop risk maps to better understand a corporate view of holistic Enterprise Risk Management.

Course Outline (Day Two)
Derivative Instruments
  • Objectives
  • Risk vs. Return
  • The instrument does not matter, it is all in the results
Interest Rate Risk
  • Gap Analysis
    • Types and use
      • Worked examples
  • Interest rate risk
    • Terminology and pricing
    • Interest rate management strategy
    • Interest rate Swaps, futures and CFD’s
      • Worked examples
    • Options

    Delegate Exercise: delegates will utilize a case study to develop an effective interest rate exposure solution set.

    Commodity Risk
    • Gap Analysis
      • Linkages
      • Types and use
        • Worked examples
      • Commodity risk
        • Terminology and pricing
        • Rate management strategy
        • Swaps, forwards and futures
          • Worked examples

        Delegate Exercise: delegates will utilize a case study to develop an effective commodity risk solution set.

        Foreign Exchange
        • Foreign exchange risk
          • Terminology and pricing
          • Interpolated and Extrapolated Hedges
            • Worked example
          • Foreign exchange risk management strategy
        • Foreign operations
          • Best practices
          • Process and technology
        • Foreign exchange instruments
          • FRA's vs. Futures
            • Comparison
          • Spot, Swaps, forwards, NDF’s, Options, FRA's
            • Worked examples
          • Foreign Exchange Policy key points
        • Tailored Foreign Exchange Solutions
          • Pyramid Hedging
          • Cash Bucket Hedging
          • Asset Swap
            • Worked example
        • Delegate Exercise: delegates will utilize a case study to develop an effective foreign exchange risk solution set.

          Accounting for Foreign Exchange
          • IFRS hedge accounting requirements
          • Schedule of compliant and non-compliant transactions
          • Convergence with US GAAP accounting treatment
          • IFRS 9
            • Worked examples
  • Course Facilitator
    David L. O'Brien, CTP

    Treasury Consultant, Global Treasury Thought Leader

    David L. O'Brien, CTP is a consultant in Treasury with expertise in global cash management, cash forecasting, treasury technology, investments, debt, foreign exchange and working capital management. Among many client projects, he has:

    • Coordinated the reengineering of a $2 bn US cash management system for a healthcare company to improve cash control and reduce bank fees by an estimated 28%.
    • Engaged by a $17 bn MNC with operations in 123 countries to coordinate a banking rationalization; implement SAP Treasury and install SWIFT Net. Improved efficiency; reduced bank accounts; reduced bank fees; and improved cash control.

    He is a frequent speaker at events sponsored by Regional Treasury Associations, AFP, Association of Corporate Treasurers and EURO Money. Since establishing his consultancy he has led Treasury workshops of 3-20 days sponsored by various institutions in: the U.S., Canada, London, Johannesburg, Ghana, Dubai, Riyadh, Hong Kong, Singapore, Jakarta, Bangkok, Zambia, Trinidad, and Barbados.

    David is a past Chairman of the AFP and has served on several of the associations’ committees. He holds a BA from University of Richmond, an MBA from Virginia Commonwealth University and the CTP certification from the AFP.

    Prior to establishing his consultancy:

    David was Assistant Treasurer at EDS Corp $22bn High Tech company with operations in 83 Countries and was direct responsibility for: In-House Bank; global cash management; working capital; foreign exchange risk; $3 bn investment portfolio; and Treasury technology including SAP Treasury, SWIFT Net and a TWS.

    • Developed a FAS 133 friendly foreign exchange management program though the In-House Bank that consistently resulted in monthly coverage of 97.5% of exposures on $40 bn in annual trading.
    • Designed and implemented a cash concentration structure for 83 countries that has resulted in a $715 mm (44%) reduction in surplus cash, daily visibility of 94% of cash balances and 95% forecasting accuracy over 90 day horizons.

    He was also Director of Treasury at Fidelity Investments a $14 bn revenue Mutual Fund company where he was responsible for global cash management, foreign exchange and working capital.

    David spent several years as Assistant Treasurer at Holiday Inns, a $2bn hotel chain with operations in 103 countries where he was responsible for global cash management, foreign exchange, bank debt and credit card processing.

    Recent Speaking Engagements
    Global Treasury Workshops

    New York, London, Hong Kong, Singapore, Jakarta, Beijing, Taipei, Bangkok, Kuala Lumpur, Dubai, Riyadh, Accra, Johannesburg and Nairobi Hired by several training companies to develop and deliver 3-4 day interactive workshops exploring all aspects of Global Treasury management; Treasury organization structures, Treasury technology, cash management, cash forecasting, foreign exchange, working capital management, corporate finance, debt and investments with worked examples and case studies used to reinforce learning.

    CTP Exam Prep Workshops
    Accra, Singapore, Riyadh, Dubai

    Hired by a finance training company to develop and deliver 5 day interactive CTP® Exam Prep workshops. The training was to prepare delegates to sit for the CTP® Exam with sample questions and review of the Essentials of Treasury Management, 3rd Ed® content used to reinforce learning. The Certified Treasury Professional® and CTP® are Registered Trademarks of the Association for Financial Professionals® (AFP) The Essentials of Treasury Management, 3rd Edition is a publication of the AFP