Foundations of Treasury and Liquidity Management

Overview:

Introduction:

Treasury and liquidity management play a vital role in ensuring a company’s financial stability and operational efficiency. This training program is designed to introduce participants to the foundational concepts of managing treasury operations and optimizing liquidity. It will cover tools and strategies essential for maintaining sufficient cash flow, reducing financial risk, and enhancing short-term and long-term financial stability.

Program Objectives:

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

•  Understand the core concepts of treasury and liquidity management.

•  Learn the importance of cash flow forecasting and liquidity planning.

•  Explore risk management techniques in treasury functions.

•  Identify tools and systems used for effective treasury operations.

•  Understand regulatory requirements and compliance in treasury management.

Target Audience:

•  Entry-level finance professionals.

•  New treasury department employees.

•  Employees interested in treasury operations and liquidity management.

•  Junior financial analysts.

Program Outlines:

Unit 1:

Introduction to Treasury Management:

•  Role of Treasury in a Business.

•  Key Functions and Responsibilities of Treasury.

•  Importance of Liquidity Management in Treasury.

•  Treasury Operations and Financial Systems.

•  Relationship Between Treasury and Other Financial Departments.

Unit 2:

Liquidity Management Fundamentals:

•  Understanding Liquidity Risk.

•  Cash Flow Forecasting Techniques.

•  Short-term vs Long-term Liquidity Strategies.

•  Managing Liquidity Crises and Contingency Planning.

•  Tools and Instruments for Liquidity Management (Cash Pools, Loans).

Unit 3:

Treasury Risk Management:

• Types of Risks in Treasury (Interest Rate, Foreign Exchange, Credit Risk).

•  Hedging and Risk Mitigation Strategies.

•  Managing Interest Rate Risk and Market Exposure.

•  Use of Derivatives in Managing Liquidity.

•  Best Practices for Risk Assessment and Compliance.

Unit 4:

Cash and Working Capital Management:

• Components of Working Capital.

•  Managing Receivables and Payables.

•  Cash Flow Optimization Techniques.

•  Role of Technology in Cash Management.

•  Bank Relationships and Cash Management Solutions.

Unit 5:

Treasury and Regulatory Compliance:

• Regulatory Framework for Treasury Operations.

•  Compliance with Basel III and Liquidity Coverage Ratio (LCR).

•  Impact of Global Regulations on Treasury Management.

•  Reporting Requirements and Disclosure in Treasury.

•  The Role of Treasury Audits and Internal Controls.