Overview
Corporate treasury management has
traditionally been about using cash efficiently, ensuring
the availability of funding, and protecting cash flows from
legal, fiscal and economic risks, particularly those caused
by changes in currency and interest rates.
The role is currently evolving,
for example by expansion into related areas such as insurance
and pensions, and by a general shift in emphasis towards strategic
group-wide risk management and outsourcing of routine, low-value-added
functions. The latest shift serves to align treasury more
closely with improving E.V.A. and shareholder value.
Outline Content
- Treasury in context - internal: role,
functions
- External context: banks, markets, rating
agencies
- Interest rates and cash flow valuation
- Cash flow dynamics and management
- Liquidity and short-term markets
- Yield curve, interest rate risk, derivatives
- Currency risks, derivatives, hedging
- Capital structure, risk and return
- Funding: equity, bank and capital market
- Policy and organisation
- Accounting and tax
- Control, compliance and ethics
- E.V.A. and shareholder value
Educational Note
The underlying theme of the course
is that the nature of the business dictates treasury priorities.
So, to do the job effectively, the treasurer must understand
the needs and risks inherent in the business.
Analytically the emphasis is on
substance over form and in particular on after-tax cash flows
rather than accruals accounted numbers.
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