Understanding Corporate Treasury & Cash Management
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Fundamentals of cash & liquidity management, from a treasury perspective
In today’s competitive transaction banking marketplace, the best way to gain a competitive advantage is by equipping relationship managers and cash management sales teams with an in-depth understanding of what matters to their customers and how they make decisions.
This intensive 3-day course covers all aspects of International Cash and Liquidity Management, both from a corporate treasury and a transaction banking perspective, so you can serve your clients better.
You will examine how a client’s strategy and business model drives the need for effective cash management within the organization and how this impacts their requirements for transaction banking services. You will consider the connection to local practices and to the needs of specific client segments. The training will also touch on FX, trade and supply chain finance as these services are integrated in the client’s organization and play a vital component when managing the corporate liquidities.
By the end of the course, you will have an enhanced understanding of the cash and liquidity needs of corporates and of how the transaction banking services you offer can meet your clients’ needs.
Attend this interactive 3-day course and:
- Understand how and why a company manages its transactions and cash Appreciate what a corporate treasurer does in a typical day
- Understand how the bank’s transaction banking products and services can meet the needs of the corporate customer
- The impact of these services on the bank’s balance sheet and funding requirements
- Learn how to offer an integrated transaction banking service to your clients that includes treasury, trade finance, supply chain, cash management, product and sales knowledge
- Apply what has been learned on an intensive case and present the results to fellow participants
The Business model for Transaction Banking In this section we set the scene for the entire program, with a focus on the business model of transaction banking, the impact of assets and liabilities on the balance sheet and the effect of new clients on our balance sheet.
- Impact on the corporate balance sheet
- What is transaction banking from a bank perspective
- Business model of a transaction bank and its relation to Asset Liability Management
- (ALM)/ bank treasury of the bank
- Importance of liquidity/ liability for banks
An overview of corporate treasury: What is cash and liquidity management and why is it important to corporates? This section introduces cash management and liquidity management and how corporate treasuries operate. It examines what corporate treasurers do, their issues and what they expect from their banks, defining treasury needs and linking banking services to them.
- Definition of Corporate Cash management
- Liquidity management
- - Balance management
- - Case: Cash flow forecasting
- - Fund management
- Cash Flow management
- - Execution of commercial and treasury transactions
- - Working capital
- The other traditional activities of treasury
- - Funding and Risk management (interest and FX)
The treasury policy – Treasury manual
- Interactive session: The treasury eco system, from treasury policy, controls, to instruments used to execute the treasury policy and meet the treasury objectives
- Case: Design a policy for Liquidity management, Cash Flow management and FX risk
The Treasury organization and its processes
- Front office, mid office and back office
- Case: design a process whereby segregation of duties is applied
Summary and conclusions from day one
Different treasury models and KPIs How is the treasury organisation organised to meet the company’s strategy, KPI’s and decentralised versus centralised model
- Principal model
- Agency model
- In-house Bank model
- Consultancy model
- Case: design per model a FX risk execution model
- The customer journeys
A typical day in the life of a corporate treasury
- What does a cash manager do on a daily basis?
- How does the treasury team operate and who within the organization does the treasurer
- need to work with?
Transaction banking and linking in the fundamentals of transactions In this section, the basis of payment and collection methods are explored, which needs they fulfil and what is happing in disruptive new payment rails in both the online as off line world
- Clearing and settlement and the different actors including SWIFT
- Fundamentals of payment instruments in relation to Cash & Liquidity management
- - payment instruments: Wire, ACH, Checks and Cards;
- - collection instruments: Direct Debits, Letter of credits;
- - trends and developments, particularly in the disintermediation, new providers,
- Instant payments, E & M commerce, API’s and blockchain application.
- - Local practice and developments
- FX transactions
- - FX spot, forward and Swap
Risk versus payment instrument
- Cash management and the cash cycle
- Cash management should support the business - Cash, liquidity and FX awareness
Managing the firm’s liquidity
- Cash concentration and cash pooling
- Cash investments
Workshop on real customer needs Map corporate needs /customer journey versus bank services (for presentation tomorrow) on the basis of an integrated case study.
- The end-to-end cycle of negotiation and settlement of commercial transactions (buy and sell)
- Understanding liquidity and the liquidity needs of the organisation
- Controlling and managing the firm’s liquidity
- Optimizing the use of asset cash – what to do with excess cash
Summary and conclusions from day 2
The third day is all about sharing knowledge, experience and apply what has been learned on the provided integrated case to maximize the learning effect.
- Understand how to offer an integrated transaction banking service to clients including treasury, trade finance, supply chain, cash management, product and sales knowledge.
- Apply what has been learned to examples from their own experience and to case
- studies supplied
Presentations from the team based exercise
Map client needs versus bank services
The end-to-end cycle of negotiation and settlement of commercial transactions (buy and sell)
- Understanding liquidity and the liquidity needs of the organisation
- Controlling and managing the firms liquidity
- Optimising the use of asset cash – what to do with excess cash
- Link Cash & Liquidity to the financial supply chain and the cash-to-cash cycle - bring it into perspective
Exercise: Design a cash and liquidity management solution INTERACTIVE
- Working in groups, course participants design and present a cash and liquidity management solution for the case study.
- Presentations of the Case Study solutions and feedback sessions
- Summary and conclusions from the course