International Treasury & Cash Management (Advanced)
15 - 17 March 2021 | London, United Kingdom
- Change date/location
- 21 - 23 March 2021 | Doha, Qatar
This course is designed for finance, treasury and banking professionals who have at least five years practical experience in various roles in treasury management and who need to gain a deeper practical knowledge of advanced treasury management techniques.
This is the most advanced international course EuroFinance offers.
Learning objectives
- Understand how treasury can deliver improved bottom-line performance for your business through tax-efficient account structures, effective hedging strategies and optimising working capital.
- Discuss alternative account structure for optimising liquidity and payments
- Get up to date with emerging payment methods including faster payments, Blockchain, Open Banking, API and PSD2
- Become compliant and learn AML and KYC procedures for banks and treasurers
- Protect your organisation against fraud and cybercrime
- Gain a comprehensive insight into the current and future challenges facing the treasury managers and CFOs.
- Develop practical skills and knowledge that can be immediately applied upon your return to the office.
- Explore the techniques being deployed by the leading global
treasury organisations.
Why attend?
- Practical, hands-on training featuring corporate case studies and group exercises
- Delivered by EuroFinance the trusted, industry leading training provider
- Proven track record – over 300 treasury professionals have attended this course
- Experienced tutors that address your real-life challenges
- Network with your industry peers – we attract professionals from over 60 countries
- Learn instantly applicable knowledge and skills to take back to the office
- CPD certified
Agenda
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International Treasury Management and Liquidity
Start time: 8:30 am End time: 5:30 pmIntroduction
Corporate Treasury Today
The evolution of treasury and cash management as critical functions in the company- Risk Management in treasury
- Funding the operating cycle
- The importance of cash and liquidity management
- Trends in today’s treasury market
- Organisation and structure of treasury in MNCs
- Managing treasury as a global process
- The changing role of the corporate treasurer
- Centralising treasury functions
- Treasury in an ERP world
- Passive or active treasury models
Risk, Funding & Exposures
Risk management strategies in treasury
- The right treasury policy
- Identifying exposures and strategies to manage them
- Categories of Financial Risk
- Understanding the instruments for hedging and risk mitigation
- Defining an appropriate Hedging strategy
- Transactional, Cash Flow and Balance Sheet Hedging
- Risk models – VAR
Funding, Yield Curves, Fair Value Accounting
Optimising Funding/Investment choices
- FX Funding (T+2), Local market T or Cross Currency Pool
- Borrow, Spot, Invest – Using FX Currency Swaps
- Managing to the yield curve
- Implied future LIBOR rates from yield curve
- Matching duration of funding to cashflow
- Fair value accounting for IRS and other derivatives
- Impact of tenor on cost of funds and investment returns
- IAS 39 and IFRS 9 – Fair value accounting
Exercise – Impact of Basel III on bank pricing
Cost of Tier 1 capital to banks and impacts on pricing for bank products
- Basel III – Impact on Corporate Treasury
- How Basel III impacts banks and their products
Treasury Centralisation and structures
How centralised should a treasury be today?
- Levels of treasury responsibility
- Decentralised, distributed or centralised treasury
- Full centralisation – regional or global?
- In-house banking – what are the advantages and disadvantages?
- Outsourcing treasury functions
- Typical treasury structures
- What fits your size of organisation?
- Passive or active treasury processes
- Centralising exposure management – intercompany FX
Optimising Global Liquidity Management
Creating visibility and mobilising liquidity globally
- Principles of Liquidity Management
- Summary of Notional pooling vs Target Balancing
- Documentation for notional pooling
- New developments in cross-border pooling
- Understanding cross-border rules and impact in cash concentration
- Cross-currency pooling structures – Interest Optimisation
- Interest Enhancement Opportunities
- Multi-bank concentration structures
- Leveraging trapped liquidity
- Hybrid structures combining cash concentration with notional pooling
- ‘Follow-the-sun’ and ‘Against the sun’ structures
- Creating a global liquidity structure
- Tax and legal issues in documentation
- Generating active or passive income
- Impact of IAS 39 and Basel II/III
Choice of treasury vehicle for liquidity
Case Study: Chocoholics
Understanding the flows, risks and treasury metrics of a multinational
- Mapping flows, currency balance, exposures
- Intercompany flows, liquidity and bank relationship impacts
- Treasury metrics and prioritisation
Tax Efficient Structures
Intermediating flows and exposures in a tax optimised way
- Reasons for establishing treasury centres vehicles
- Which locations are right?
- Tax implications of a treasury vehicle
- Tax neutral or tax advantaged
- Impact on OECD BEPS rules on treasury centres
- Popular legal structures – Europe, Off-shore, Asia Pacific and LatAm
Trends in Treasury Management
What treasurers are saying at EuroFinance conferences as the key issues for the year ahead
End of Day 1
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Efficient payments and accounts
Start time: 8:30 am End time: 5:30 pmWorking Capital and Commercial Flows
Key principles of Working Capital Management and maximising efficiency of commercial payments and receipts
- Cash Conversion Cycle – CCC, DPO, DSO, DIO
- Cash Management efficiency techniques
- Funding working capital and releasing under-utilised cash
- Weighted Average Cost of Capital
- Optimising financial metrics – off balance sheet
Intermediating Commercial Flows, Payments Factories and Shared Services
Shared service centres and payment factories – tools to optimise treasury and take control
- The business case for shared services
- Benchmarking SSC processes
- Centralising vs Outsourcing
- Benefits of centralising administrative processes
- Creating efficient accounts payable processes
- Role of ERP systems in commercial flows
- Using commercial cards and p-cards for procurement and T&E
- Integration with procurement systems and platforms
Techniques for Commercial Flows
New challenges when regionalising commercial flows
- What can be achieved in ERP
- ‘On behalf of’ collections and payments (POBO/COBO)
- In-house cash banking
- Case study – Treasury ERP
Domestic Payments
How money moves and settles domestically
- Domestic Clearing Infrastructure and key concepts
- Changing payments infrastructure
- Eurozone payment and clearing options – Life after SEPA
- Comparison of regional systems – Americas/African/European/ Asian examples
- Specialised local instruments
- Emerging Payment methods – Faster Payments, Mobile, Blockchain, Open Banking, API and PSD2
International Payments
Moving money across borders efficiently to minimise charges and loss of availability
- SWIFT and International money movement
- Using intermediary or correspondent banks
- Serial Payments vs Pay Direct with Cover
- The types of messages and when they are used
- Regional Payment systems
- Using BICs, IBANs and UIDs
- Implications of OFAC and AML
- Currency check collections and bankers drafts
- Letters of Credit and Documentary collections
Account Structure for Commercial & Treasury Flows
Principles for account location – where to hold them and how to manage them
- Easy countries and problem countries – examining different scenarios
- Integrating resident and non-resident accounts
- Impact of Euro/SEPA on account structures
- Importance of establishing correct ownership
- Incorporating netting, inter-company funding and centralised liquidity
- Approaches to regional and global liquidity management structures
- Centralised or decentralised account structures
- Linking in a treasury centre or an in-house bank
- Integrating concentration, notional pooling, POBO/ROBO, interest optimisation, interest enhancement and funding
The Evolving Regulatory and Governance/Risk Frameworks
Treasury compliance and policy challenges
- Framework of policies and procedures
- Impending Money Market Fund Reforms EU and US
- Compliance – AML and KYC procedures for banks and treasurers
- EMIR and Dodd Frank reporting
- Intercompany loan pricing considerations
Principles of Working Capital & Cash Management Efficiency
Working capital – what is a ‘sufficient’ cash buffer?
- Order to Cash and Purchase to Pay cycles
- Eliminating cash cycle times
- Automation of receivables matching
- Electronic bill presentment and payments
- E-invoicing and dispute management
Supply Chain Financing
The new face of trade solutions in your supply chain
- The financial supply chain
- P&L vs balance sheet management
- Measures of working capital performance
- Examples of ‘buy-side’ and ‘sell-side’ financing
- Supplier financing programs
- Achieving off-balance sheet financing
- Accounting implications of receivables finance
- Electronic solutions and technology developments
- Documentation and logistics
Exercise – Improve liquidity or improve Return on Assets
Using financing to deliver cheaper funding and/or improving financial ratios
End of day 2
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Working capital, systems and bank relations
Start time: 8:30 am End time: 5:30 pmBuilding Treasury Dashboards with Business Intelligence
How to use the latest business intelligence and TMS systems
- Key reporting components, KPIs, KRIs and KLIs
- Data visualisation and charts
- Data warehouse, data layer, analytical model
- Including data from ERP, Excel models, rates services
- Delivery on mobile, tablet and PC
- Commonly used reporting platforms
Cash Forecasting
Cash forecasting precision is critical for funding efficiently and managing cash
- Objectives of Cash Forecasting
- Long, Medium and Short term
- Direct vs Indirect method
- Statistical vs Items level forecasting
- Models for Cash Forecasting (Miller-Orr, Baumol)
- Separating Payables and Receivables
- ERP Bank reconciliation
- Tools for Forecasting
Leveraging an ERP for Treasury
Integrating ERP systems into today’s treasury – the new treasury models and next level of efficiency
- Treasury systems versus ERP systems
- Cash management and cash forecasting modules
- Integrating In-House Cash modules
- Role of treasury in ERP process definition
- Implementing receivables matching in ERP
- Aligning ERP with Treasury
- ERP Deployment and new business models
- Challenges of Implementation
- Technology Platforms for Payments Factories
- Payments Factory as an alternative to ERP
Treasury Technology
Assessing the critical functions of a treasury management system
- Functionality of Treasury Systems
- Web based FX trading
- Treasury functionality within ERP systems
- Selection, implementation and integration of treasury management systems
- Latest trends and enhancements
- Benchmarking your system
- How much customisation
- System integration case studies
Banking Systems & Corporate SWIFT
Linking electronic banking and SWIFT to the corporate treasury management system
- Typical bank proprietary channels
- Multi banking aggregation
- Corporate access to SWIFT – MA-CUGs and SCORE
- SWIFT FileACT and FIN
- SWIFT Bureau, SWIFT Alliance Lite 2, or direct connection
- Proprietary or Industry standards
- Managing the documentation issues
- Objectives for systems integration
- Control, contingency and security
Integration and International Standards
What to look out for in different technology choices – avoiding ‘the bleeding edge of technology’
- Current internationally accepted standards
- ISO20022 vs EDIFACT, ANSI, iDoc
- Work flow management and reconciliation
- SAP Financial Services Network (FSN)
- eBAM, SWIFT 3Skey and Reference Data
- Emerging technologies
Fraud and CyberCrime
- Treasury policies to protect your treasury
- Common cyber attacks today
- Phishing, spoofing and social engineering
- Hardening systems and firewalls
- Encryption and authentication controls
- Recovery plan from a cyber attack
Selecting Banking Partners
Understanding what is ‘best practice’ (mandates, relationship) when choosing bank relationships
- Critical requirements for multinational corporates
- Bank geographic strategies
- Local or regional banks?
- Supporting credit banks
- Approaches to pricing and service quality
- Corporate organisation matches
- Right bank or right solution
The International RFP process
What to look for in structuring a good RFP or tender document to get the best proposal from bankers
- Selecting a bank and services
- The tender document – what to include
- RFP Process checklist – what should your expectations be?
- Handling the short-list and negotiation meetings
- Identifying and pre-qualifying banks
- How banks structure their proposals
- How to evaluate the bank responses – benchmarks, formats
Class Exercise: Choosing the right bank
Prioritising your banking requirements
- Selecting banks for cash management services in a foreign country
- Focus on corporate requirements and bank selection process
- Impact of credit on relationships
- How banks propose viable solutions and differentiate themselves
What to expect in the future
What to expect in the coming year and beyond
- Policy agenda issues for treasurers
- New banking products
- Key infrastructure developments
Course wrap-up
- Summarising Treasury Management
- Treasury Management Quiz
- Review of Objectives
- Lessons learned
End of course