• Home
  • Financial Risk Management for Corporations 2019 - Workshop

Financial Risk Management for Corporations 2019 - Workshop

This activity is presented by Treasury Training Services.

The course explains the key financial risks associated with financing corporations and issues associated with liquidity and funding, foreign exchange, interest rates, credit and commodity price risk. It explains an effective financial risk management framework and provides practical examples of the tools and techniques used to protect the corporation.

Content Description:

The importance of robust cash flow forecasting and cash management is explained and examples of how to achieve this are provided. Direct bank funding versus capital markets issues are also addressed leading into the importance of liquidity risk management and effective management techniques.

Issues associated with managing market risk are identified and addressed including a high level understanding of value at risk (VaR) in a corporate environment.

The foreign exchange market is explained including spot conversions, forward exchange contracts and FX swaps. Issues associated with historical rate rollovers are explained including ways to avoid them. An on-line FX dealing game is provided.

Interest calculations are explained and an example Excel calculator is provided. Interest rate yield curves including the forward curve and its importance are explained. Interest rate swaps and interest rate risk management tools and techniques are explained.

Policies, procedures and key management controls are identified and explained.


Learning Outcomes:

Upon satisfactory completion of this activity you will be able to:
• Implement processes to achieve effective cash flow forecasting and cash management.
• Identify and assess different types of corporate funding and describe the importance of financial covenants and committed facilities.
• Describe how corporations identify liquidity risk and be able to quantify, manage and report liquidity risk.
• Understand the risk/reward ratio, risk appetite and issues associated with the emotional influences in finance.
• Understand the FX market structure and explain how FX spot, forward, historical rate rollovers and FX swaps work.
• Recognise different types of FX risk and how to identify, quantify, manage and report FX risk.
• Calculate present value from future value and vice versa and explain nominal and effective interest rates.
• Describe different types of yield curves and how to construct them.
• Explain costs and benefits of forward interest rates.
• Describe different approaches to interest rate risk management policies and how to identify, quantify, manage and report interest rate risk.
• Explain the key steps in managing counterparty credit risk.
• Describe the components of an effective financial risk management framework, the role of policies and procedures and the structure of treasury operations.


Good financial risk management can greatly assist a corporation to reduce volatility in results and reduce the overall cost of financing. Poor financial risk management can result in increased costs, financial distress (from the providers of debt and/or equity) and in the worst case lead to the demise of the corporation. This course helps participants understand the difference and how they can achieve good financial risk management.

Ivan St Clair


Short pre-reading is provided before the course.

Course manual is provided at the course with copies of all presentations.

Post course, a Certificate of Completion and examples of:

• Treasury policy (Word document)
• Cash flow forecast spread sheet (Excel spread sheet)
• Financial calculator (Excel spread sheet)
• Net interest cover covenant sensitivity analysis (Excel spread sheet)

No pre-requisites.

Attendees need to bring a laptop or tablet.


Topic: Corporate Finance, Reporting

Sub-Topic: Business Planning & Analysis, Business Reporting, Finance Management, Financial Reporting, Risk Management

Format: Workshop

Proficiency Level: Intermediate, Advanced

CPD: 14.5 hours