Deep Dive Into Treasury Risk Management

Course overview

The Treasury division is the Centre of any bank or financial organization. Every bank and financial institution must deal with treasury-related concerns, such as liquidity.

What do treasurers do?

The Treasury Risk Manager’s primary duty is to follow IFRS compliance in order to reduce risk and support other employees. The relevant workers should place liquidity risk at the top of their list of concerns because any institution’s survival solely depends on it. All other potential risks, including as changes in interest rates, operational hazards, and market difficulties, cannot be completely eliminated; rather, they must be properly tracked, measured, and managed in order to boost profitability.

What are solutions for treasury risk management?

Training Bee gives treasury managers and professionals the tools they need to respond to risks linked with market scenarios and balance sheets by using various techniques including funding and hedging. This covers all the essential facets, areas, and tactics of treasury risk management and, in the end, gives you the skills necessary to hold the position of treasury risk manager and carry out its primary duties. You will also have the chance to display your expertise in respectable financial institutions and banks because your skills will be polished and developed.

Introduction

We’re glad you’re here for the Treasury Risk Management Course. The goal of this extensive program is to provide you the information and abilities needed to accurately identify, measure, reduce, and monitor risks within the treasury function of your company.

To protect their financial stability and maximize their performance, organizations must manage treasury risks in the fast-paced business climate of today. The goal of the course is to give you a thorough understanding of the fundamental ideas, tactics, and best practices related to treasury risk management.

We will examine a variety of risks that treasury departments must deal with during this course, including market risk, credit risk, liquidity risk, operational risk, and regulatory risk. You’ll discover how these dangers might affect treasury operations and an organization’s overall financial stability.

We are The Training Bee, a global training and education firm providing services in many countries. We are specialized in capacity building and talent development solutions for individuals and organizations, with our highly customized programs and training sessions.

Learning Objectives

Upon completing Deep Dive into Treasury Risk Management, participants will be able to:

• Evaluate and examine all potential hazards that are reflected in and emerge from balance sheets in the form of obligations and assets.
• Recognize the resources available to you and make effective use of them to assess all potential risks in light of changing market conditions.
• Understand the risk management tools and methods’ applicability as well as the ideal times to use them.
• Understand the meaning of the term “liquidity”, “liquidity buffers”, “liquidity buffer management”, “liquidity risks beyond deposits”, and “basic loans” in detail.
• To determine the extent of liquidity risk in banks, use the liquidity risk measures package.
• Create and assess the stress tests.

Our Unique Training Methodology

This interactive course comprises the following training methods:

• Role-playing – Participants will take part in several role-plays and understand practical ways of solving issues.
• Journaling – This consists of setting a timer and letting your thoughts flow, unedited and unscripted recording events, ideas, and thoughts over a while, related to the topic.
• Social learning – Information and expertise exchanged amongst peers via computer-based technologies and interactive conversations including Blogging, instant messaging, and forums for debate in groups.
• Mind mapping and brainstorming – A session will be carried out between participants to uncover unique ideas, thoughts, and opinions having a quality discussion.
• Interactive sessions – The course will use informative lectures to introduce key concepts and theories related to the topic.
• Presentations – Participants will be presented with multimedia tools such as videos and graphics to enhance learning. These will be delivered engagingly and interactively.

Training Medium

This Deep Dive into Treasury Risk Management training is designed in a way that it can be delivered face-to-face and virtually.

Course Duration

This training is versatile in its delivery. The training can be delivered as a full-fledged 40-hour training program or a 15- hours crash course covering 5 hours of content each day over 3 days

Pre-course Assessment

Before you enroll in this course all we wanted to know is your exact mindset and your way of thinking.
For that, we have designed this questionnaire attached below.

• Why Treasury Risk Management is vital for organizations and what is it?
• List and briefly describe the main categories of hazards that treasury departments must deal with.
• Explain how, in the context of treasury operations, market risk and credit risk vary.
• What constitutes a framework for effective Treasury Risk Management?
• Talk about how treasury management deals with interest rate risk and foreign exchange risk.
• What are the primary goals of managing liquidity risk in a treasury function?
• Give an explanation of the idea of operational risk and examples of how it might affect treasury operations.

Course Modules

This Deep Dive into Treasury Risk Management covers the following topics for understanding the essentials of the Agile Workplace:

Module 1 – An Overview of Treasury Management

• Basics of Treasury Management
• Treasury Management’s goals

Module 2 – Functions of Treasury Management

• Cash Prediction
• Control of Capital
• Management of Cash and Investments
• Risk management and strategy creation

Module 3 – Types of Treasury Department Structure

• Treasury department types: Centralized/Decentralized
• Front Desk Organization
• Middle Office Organization
• Back Office Organization

Module 4 – A thorough examination of liquidity and cash management

• Cash forecasts’ function
• Making cash flow projections
• Investing excess cash to maximize return
• Short-term financial planning for working capital management at its best

Module 5 – Financial and Capital Management

• Optimization of capital structure to lower capital costs (Weighted average capital costs)
• CAMP stands for the Capital Assured Pricing Model.
• Capital investment evaluation (Payback, IRR, NPV)
• Rationing of capital both internally and externally
• Growth, M&A, consolidation, diversification, joint ventures, and other financial strategic goals

Module 6 – Risk Identification

• External threats
• Risks at home
• Unrelated risks
• Risks with money

Module 7 – Calculation of Risks

• Value in threat
• Probability
• Standard Deviation Variance
• Volatility

Module 8 – Strategies for Managing Risks

• Tolerate, Terminate, Transfer, and Treat: The 4 T’s
• Internal Control
• Internal Measures
• Management of credit and counterparty risk

Module 9 – Interest rate, currency, and a commodity (oil price)

• Forward Rate Agreements and Forward Contracts
• Call and Put Options in the United States and Europe
• Futures (Market Correlation, Margin Payments, etc.)
• Interest rate and currency swaps: benefits and hazards
• Internal strategies for accounts with foreign currencies

Post-course Assessment

Participants need to complete an assessment post-course completion so our mentors will get to know their understanding of the course. A mentor will also have interrogative conversations with participants and provide valuable feedback.

• Describe the idea of value at risk (VaR) and how it might be used to treasury operations to gauge market risk.
• Talk about the main processes required in creating and putting a Treasury Risk Management policy in place.
• Describe the various hedging strategies used in treasury management to control foreign exchange risk.
• How may derivative instruments be used in a treasury portfolio to reduce interest rate risk?
• Describe the main components of a stress testing framework for treasury risk management in general terms.
• Discuss the difficulties and potential solutions for a treasury department handling liquidity risk.

Lessons Learned

After finishing the Treasury Risk Management course, participants should have acquired a number of important lessons. Here are some final takeaways from the course:

Comprehensive Risk Identification: Participants should have gained knowledge of the significance of recognizing and comprehending the different risks that treasury departments must deal with, such as market risk, credit risk, liquidity risk, operational risk, and regulatory risk. They should now be able to recognize and evaluate these risks within the treasury function of their company.

Risk Measurement and Quantification: Participants should have learned about several quantitative methodologies, such as value at risk (VaR), stress testing, and scenario analysis, used to measure and quantify risks. They ought to comprehend how these techniques can be used to effectively measure risk exposure and estimate prospective losses.

Risk Mitigation Techniques: Participants must to be familiar with the various risk mitigation methods that are employed to successfully manage and reduce treasury risks. These could include diversity, contingency planning, diversification, and derivative instruments. With this knowledge, participants should be able to design and use these techniques practically.

“Treasury Risk Management: Laying a Firm Foundation for a Secure Future”