Treasury Risk - Cash, Liquidity and FX Exposure Training Course

Treasury Risk - Cash, Liquidity and FX Exposure Training Course

Introduction

In today's volatile global economy, effective Treasury Risk Management is non-negotiable for maintaining corporate financial health and competitive advantage. Organizations must navigate complex market conditions characterized by FX volatility, evolving regulatory landscapes like Basel III/IV, and persistent liquidity stress. Treasury Risk - Cash, Liquidity and FX Exposure Training Course focuses on mastering the core pillars of treasury risk Cash Management, Liquidity Risk, and Foreign Exchange (FX) Exposure equipping participants with the strategic skills and analytical tools necessary to proactively identify, measure, and mitigate these critical financial threats.

This training dives deep into real-time cash visibility, optimizing working capital, and implementing sophisticated financial hedging strategies. We explore the latest FinTech solutions and treasury automation advancements, moving beyond theoretical concepts to deliver practical, actionable insights. By mastering cash flow forecasting accuracy, developing robust contingency funding plans (CFP), and executing effective currency risk mitigation using derivatives, participants will learn to transform the treasury function from a cost center into a strategic value-add partner to the CFO, ensuring financial resilience and supporting sustainable global growth.

Course Duration

5 days

Course Objectives

1. Master the principles of Real-Time Cash Visibility and Global Cash Concentration.
2. Optimize the Working Capital Cycle to enhance free cash flow and operational efficiency.
3. Implement robust Cash Flow Forecasting methodologies to drive accuracy and reduce funding surprises.
4. Analyze and Quantify Liquidity Risk Exposure using modern metrics like LCR and NSFR
5. Develop and document a structured Contingency Funding Plan (CFP) for crisis preparedness.
6. Assess and manage all forms of FX Exposure: Transaction, Translation, and Economic risks.
7. Select and Execute appropriate Financial Hedging instruments for currency risk mitigation.
8. Evaluate and mitigate Counterparty Credit Risk within treasury operations and bank relationships.
9. Design an efficient In-House Bank (IHB) structure to centralize and optimize intercompany flows.
10. Comply with emerging global Treasury Regulations and governance frameworks.
11. Leverage Treasury Management Systems (TMS) and APIs for Treasury Automation and digital transformation.
12. Calculate and interpret key Risk Metrics like Value-at-Risk (VaR) for financial exposures.
13. Benchmark current treasury policies against Global Best Practices to ensure Financial Resilience.

Target Audience

1. Treasury Managers/Analysts
2. Finance Directors/CFOs and their direct reports
3. Risk Management Professionals
4. Controllers and Accounting Staff involved in cash and FX reporting
5. Financial Planning & Analysis (FP&A) Managers
6. Internal Auditors with a focus on treasury controls
7. Senior Commercial/Business Unit Leaders with exposure to international trade
8. Bank Relationship Managers

Course Module

Module 1: Strategic Cash & Working Capital Management

• Real-Time Cash Visibility and Bank Account Structures
• Optimizing the Cash Conversion Cycle
• Advanced Cash Flow Forecasting techniques 
• Managing payment factory and In-House Bank operations.
• Case Study: A Multinational Company restructuring its global bank accounts to achieve $5M in annual interest and fee savings through cash pooling.

Module 2: Fundamentals of Liquidity Risk Management

• Defining and quantifying Liquidity Risk
• Developing and stress-testing a robust Contingency Funding Plan (CFP).
• Introduction to LCR and NSFR implications for corporate funding.
• Strategic management of Liquidity Buffers and short-term investments
• Case Study: An organization’s response to a sudden credit market freeze, detailing the activation and execution of its documented CFP.

Module 3: Foreign Exchange (FX) Exposure Identification

• Deep dive into the three types of FX Risk.
• Identifying and measuring cash flow-based FX exposure from firm commitments and anticipated transactions.
• The impact of FX fluctuations on the P&L and Balance Sheet
• Determining the appropriate Hedging Horizon and Risk Tolerance level.
• Case Study: A European manufacturer analyzing the economic FX exposure on its USD-denominated raw material costs and its impact on long-term competitive pricing.

Module 4: FX Hedging Instruments and Execution

• Practical application of FX Forwards and FX Swaps for transactional hedging.
• Using Currency Options to manage risk while retaining upside potential.
• Introduction to Non-Deliverable Forwards for restricted currencies.
• The role of FinTech Platforms and Multi-Bank Portals in trading and execution.
• Case Study: A US-based tech company utilizing a combination of FX collars to hedge its Q3 Euro revenue exposure, locking in a favorable floor rate.

Module 5: Hedge Accounting and Governance (IFRS/US GAAP)

• Hedge Accounting fundamentals.
• Documentation requirements.
• The transition and impact of IFRS 9 on hedge accounting practices.
• Designing and enforcing the Treasury Policy
• Case Study: A company failing an audit due to inadequate hedge documentation, leading to earnings volatility and a requirement to restate financial results.

Module 6: Risk Measurement and Analysis

• Calculating and interpreting Value-at-Risk for aggregated currency and liquidity positions.
• Performing Sensitivity Analysis and Scenario Testing on cash flow and balance sheet items.
• Evaluating Counterparty Credit Risk in derivative portfolios and deposit holdings.
• Key Performance Indicators and Key Risk Indicators for the Treasury function.
• Case Study: Using Monte Carlo Simulation to model the potential 1-year earnings-at-risk (EaR) from a portfolio of five major currency exposures.

Module 7: Treasury Technology and Automation

• Selection and implementation of a Treasury Management System
• Leveraging API Connectivity and SWIFT for seamless bank integration and payment automation.
• Introduction to Robotic Process Automation in treasury back-office tasks
• The emergence of Blockchain and Digital Currencies in cross-border payments.
• Case Study: A mid-sized corporate implementing a TMS, reducing manual bank reconciliation time by 80% and improving cash forecasting accuracy by 15%.

Module 8: Advanced Funding & Strategy

• Optimizing the Capital Structure and long-term debt issuance strategies.
• Intercompany funding, documentation, and the importance of Transfer Pricing compliance.
• Managing bank relationships, fee analysis, and Bank Relationship Management software.
• Presenting a Strategic Treasury Report to the Board/ALCO
• Case Study: A global subsidiary successfully negotiating a local currency loan facility by providing a comprehensive, hedged funding plan, improving local debt cost.

Training Methodology

This course employs a participatory and hands-on approach to ensure practical learning, including:

• Interactive lectures and presentations.
• Group discussions and brainstorming sessions.
• Hands-on exercises using real-world datasets.
• Role-playing and scenario-based simulations.
• Analysis of case studies to bridge theory and practice.
• Peer-to-peer learning and networking.
• Expert-led Q&A sessions.
• Continuous feedback and personalized guidance.

Register as a group from 3 participants for a Discount

Send us an email: info@datastatresearch.org or call +254724527104 

Certification

Upon successful completion of this training, participants will be issued with a globally- recognized certificate.

Tailor-Made Course

 We also offer tailor-made courses based on your needs.

Key Notes

a. The participant must be conversant with English.

b. Upon completion of training the participant will be issued with an Authorized Training Certificate

c. Course duration is flexible and the contents can be modified to fit any number of days.

d. The course fee includes facilitation training materials, 2 coffee breaks, buffet lunch and A Certificate upon successful completion of Training.

e. One-year post-training support Consultation and Coaching provided after the course.

f. Payment should be done at least a week before commence of the training, to DATASTAT CONSULTANCY LTD account, as indicated in the invoice so as to enable us prepare better for you.