Course Details

This course is appropriate for a wide range of professionals but not limited to:

• Treasury and Risk Managers
• Financial Analysts and Controllers
• Corporate Accountants and Budgeting Specialists
• CFOs and Finance Directors
• Internal Auditors

• Expert-led sessions with dynamic visual aids
• Comprehensive course manual to support practical application and reinforcement
• Interactive discussions addressing participants’ real-world projects and challenges
• Insightful case studies and proven best practices to enhance learning

By the end of this course, participants should be able to:

• Master the preparation and interpretation of comprehensive cash flow statements and reports effectively.
• Build robust short-term and long-term cash flow forecast models for liquidity management competently.
• Identify, quantify, and categorize major financial risks, including market, credit, and operational risks reliably.
• Implement hedging and mitigation strategies against currency, interest rate, and commodity price fluctuations successfully.
• Develop dynamic liquidity management plans and secure appropriate contingency funding proactively.
• Integrate cash flow forecasting and risk assessment into overall corporate strategy and governance accurately.

DAY 1

Foundations of Cash Flow Analysis and Strategic Importance

• Welcome and Introduction
• Pre-test
• Cash flow vs. profit: understanding the strategic importance of cash
• Review of the Statement of Cash Flows (SCF) and its three activities (O, I, F)
• Using both the direct and indirect methods for SCF preparation and analysis
• Analyzing the quality of earnings and the sustainability of operating cash flow
• Introduction to working capital management and the cash conversion cycle

DAY 2

Cash Flow Forecasting and Liquidity Management

• Techniques for building a short-term (13-week) rolling cash forecast model
• Methodology for long-term (annual/multi-year) strategic cash flow planning
• Integrating operating budgets, capital expenditures, and debt service into forecasts
• Scenario planning and sensitivity analysis for key cash flow drivers
• Identifying cash surpluses and deficits and planning optimal deployment
• Principles of centralizing and pooling cash for efficient liquidity management

DAY 3

Introduction to Financial Risk Management

• The enterprise risk management (ERM) framework and financial risk categories
• Market Risk: Defining and quantifying risks from changes in interest rates, currency, and commodities
• Credit Risk: Assessing counterparty default risk in trade and investment activities
• Liquidity Risk: Understanding the risk of not meeting short-term obligations
• Operational Risk: Impact of internal failures on cash flow and financial stability
• Tools for risk measurement and reporting (e.g., Value at Risk - VaR basics)

DAY 4

Market Risk Hedging and Mitigation Strategies

• Managing Interest Rate Risk: Tools like swaps, caps, and collars
• Managing Foreign Exchange (FX) Risk: Understanding transaction, translation, and economic exposure
• FX Hedging Instruments: Using forward contracts, futures, and options
• Managing Commodity Price Risk: Introduction to hedging with futures and physical contracts
• Principles of integrated risk management and developing a treasury policy
• Assessing and managing the credit risk of financial institutions and trade receivables

DAY 5

Funding, Contingency Planning, and Governance

• Developing cash flow contingency plans and establishing buffer liquidity
• Evaluating and securing short-term and long-term funding sources for growth and shortfall
• Understanding loan covenants and their impact on cash flow flexibility
• Utilizing cash flow analysis for effective investor and lender communication
• The role of the Board and Treasury Committee in cash flow and risk governance
• Post-test
• Certificate ceremony