The Nuts and Bolts of Cash Management

The principles and practices of effective cash management

What is it about?

This course provides a broad understanding of the basic principles and practices of cash and liquidity management. While different market sectors have different cash flow dynamics, there are common cash management issues that affect all organisations to some degree. Starting with the domestic viewpoint, the course examines the basic building blocks of cash management and then, through a series of case studies, extends the basic principles to tackling the complexities of international cash management.

Programme

Float time

• The cost of poor cash management; invoicing; finality; value dating; payables and receivables management; liquidity and the cash cycle
• Payment instruments (paper-based, electronic) and clearing systems (RTGS, NSS); domestic and international
• Finality; value dating

Cash management structures

• Types of accounts; currency accounts; zero balance; lock box; disbursement
• International account structures

Liquidity techniques

• Notional pooling; cash concentration; crossborder notional pooling
• Short-term borrowing; investing; leading and lagging

Cash flow forecasting

• Purpose; methods and problems

Basic interest calculations

• 360/365 bases; short-term instruments

Further international complexity

• FX (spot, forward, swaps); regulations; netting

How do you benefit?

Participants will gain an understanding of what cash and liquidity management consists of, its importance to the business and to the treasury function.

Who is it for?

• New entrants to the treasury function
• Those who interface with treasury
• All those with day-to-day responsibility for managing cash and liquidity

Trainer

• Anthony Birts CertICM, BSc, MBA