Treasury Risk Management Course

Course Objectives
The fundamental objective of this course is to empower professionals to-
• Assess and analyse all the possible risks present and arising from balance sheets in the shape of liabilities and assets
• Understand the tools and use them efficiently to measure all the potential risks as per ever-changing market scenarios
• Know the applicability of the risk management strategies and instruments and the best time to practice them
• Know the concept of liquidity, liquidity buffers, management of these buffers, liquidity risks beyond deposits, and basic loans in depth
• Use liquidity risk metrics suite to assess the scope of liquidity risk in banks
• Formulate and evaluate the tests of stress
• Comprehend and assess the scope of controls of liquidity risk along with lending outcomes
• Comprehend the formulation of various policies of funding for trading books and banks
• Appreciate the Asset Liability Committee’s (ALCO) role in banks and its structure of governance
• Grasp the pricing of the internal funds’ transfer concept and analyse the application of a specific model to a particular institution type
Course Outline
Introduction to Treasury Management
• Introduction to Treasury Management
• Objectives of Treasury Management
Treasury Management Functions
• Forecasting Cash
• Management of Capital
• Cash and Investment Management
• Managing Risks and formulating strategies
• Fundraising
• Granting credit
• Other functions
Treasury Department Structure and its types
• Types of treasury department: Centralised/Decentralised
• Front Office Structure
• Middle Office Structure
• Back Office Structure
An in-depth analysis of Liquidity and Cash Management
• Role of cash forecasts
• Preparing cash forecasts
• Investing cash surpluses for maximizing return
• Finance of short-term
• Optimum level determination of working capital management
• Group and international management of cash
• Processing cash budgets
• Controlling cash budgets
Capital and Finance Management
• Optimization of the structure of capital for reducing the cost of capital (Weighted average cost of capital)
• The Capital Assed Pricing Model (CAPM)
• Evaluation of the capital investment (Payback, IRR, NPV)
• Internal and external rationing of capital
• Financial strategic objectives (Growth, M&A, Consolidation, Diversification, Joint ventures, and so on)
• Finance of Long-term (Buyer & Supplier Debit versus Public & Private Equity)
Identifying Risks
• External risks
• Internal risks
• Non-financial risks
• Financial risks
Measurement of Risks
• Value at risk
• Probability
• Standard Deviation
• Variance
• Volatility
Determination of Strategies of Risks Management
• Probability
• Assessing impacts
Strategies of Risks Management
• The 4 T’s Strategy (Tolerate, Terminate, Transfer and Treat)
• Internal Audit
• Internal Controls
• Credit and Counterparty risk management
Documentation of Loan
• The typical loan transaction structure
• Issues arising before signing the contracts and solving them
• Event and covenants (default, cross-default, financial covenants, etc)
• Quasi security, security and their guarantees
Commodity (Oil price), interest rate, and currency
• Forward Contract
• Forward Rate Agreements
• American and European calls and puts options
• Futures (Margin Payments, Market Correlation, and so on)
• Swaps: Interest rate and currency risks and advantages
• Internal tactics for foreign currency accounts
• Borrowing foreign currency

Methodology
The training methodology integrates lectures, interactive discussions, collaborative group exercises, and illustrative examples. Participants will acquire a blend of theoretical insights and hands-on practical experience, emphasizing the application of learned techniques. This approach ensures that attendees return to their professional environments equipped with both the competence and self-assurance to effectively implement the acquired skills in their responsibilities.
DATE:
1ST BATCH: 21st – 24th Jan 2025
2ND BATCH: 17th – 20th June, 2025