The purpose of this seminar is to give the delegates a comprehensive understanding of the objectives, tools and techniques of modern corporate treasury management. We will start with a general discussion of the role of the Treasury Function in an internationally active corporation. The importance of funding choices and sound risk management will be explained, and we will define the scope, level and content of the tasks of a "typical" treasury function. We will then look in more detail into the techniques and tools available to the Treasurer. We will explain how funding issues are resolved and how liquidity and liquidity risk is managed using money and capital market instruments. Next, we will explain how foreign exchange exposure is measured and managed. We will discuss the differences between economic and accounting exposure, and we demonstrate the various techniques for quantifying and mitigating these types of exposure. We will then discuss how interest rate risk manifests itself in a non-financial corporation, and we will explain how this risk can be effectively measured and managed. After that, we will explain how "Value-at-Risk" and "Cash-Flow-at-Risk" are measured and used in a corporate framework. We shall establish a "Risk Exposure Platform" to analyze the economic and financial effects of changes in commodity prices, exchange rates and interest rates on the company's cash flows. We will use "CorporateMetrics™" as a practical example of this type of methodology. Finally, we will discuss how Corporate Treasury Management can be organized, suggesting appropriate risk management policies and procedures for top management reporting. At this point, we will include a review of the possible impacts of new accounting rules such as IAS39/FASB133.
