The Financial Excellence Program
Course Code: FA24
►Course Objective
- Acquire an understanding of the fundamentals of the successful management of corporate financial performance, from the development of strategy through planning and budgeting to performance monitoring and control
- Develop practical experience of the workings of a best practice financial performance management model, and of how to improve corporate financial performance in real-life
- Gain the insights required to win in the global marketplace, for example relating to:
- Interpreting financial statements
- Evaluating financial performance
- Financial forecasting
- The financing decision
- Determining the cost of capital
- Evaluating investment opportunities
- Managing risk
- Raise financial skills
►Target Audience
- General Management
- Sales and Marketing
- Estimating and Costing
- Operations
- Engineering
- Project Management
- Procurement
- Logistics
- Asset Management
- Human Resources
- And any other financial and non-financial professionals that need or wish to understand the financial aspects of the strategic decision-making process.
►Course Outline
DAY 1
Corporate Financial Planning
- Strategic Planning
- The Objective of the Firm – meeting Shareholder & Stakeholder Objectives
- Agency Theory – the relationship between Shareholders & Management
- Creative Accounting and the Case of Enron
- Financial Management & Financial Planning – the Scope, Role & Responsibilities of Financial Management
- Preparing a Financial Plan – the Master Budget
- Forecasting Future Cash-flows and Financial Modelling
- Time Series Analysis, Correlation & Regression
DAY 2
Financing the Plan
- Sources of Finance – Long Term & Short Term
- Evaluation of the Types of Finance – Equity vs. Debt Finance
- Hybrid Finance & Financial Engineering
- The Dividend Decision
- The Cost of Capital and Weighted Average Cost of Capital (WACC)
- Capital Asset Pricing Model (CAPM)
- Accounting Rate of Return (ARR)
- Net Present Value (NPV), Internal Rate of Return (IRR) Capital Rationing & Payback
DAY 3
Preparing & Managing Budgets to Support the Financial Plans
- Definition of Budgets, the Budgetary Process and Budgetary Control
- Types of Budgets-Fixed, Flexible, Incremental and Zero Based
- The Purpose/Benefits & Problems/Limitations of Budgets
- Setting/Implementing Effective Budgets – Eliminating the Problems
- Responsibility Accounting and Absorption Costing
- Activity-Based Budgeting/Costing (ABB, ABC)
- Variance Analysis, Cost Behaviour, Break Even Analysis & Sensitivity/What If Analysis
- What-If Analysis combined with Du-Pont Analysis
DAY 4
Managing and Controlling Cash Flow to Support the Financial Plan
- Cash vs. Profit & The Cash Conversion Cycle
- Calculating and Managing the Cash flow Cycle
- Cash Flow Ratios
- Working Capital
- The Cost of Maintaining Working Capital
- Maintaining the Optimum level of Working Capital
- Working Investment Ratios
- Preparing a Monthly Cash Flow Forecast
DAY 5
Managing Financial Risk
- Risk Management & Types of Risk
- Identifying Risk – SWOT Analysis
- The Major Quantitative & Qualitative Risks Facing Companies
- Establishing a Risk Management Strategy
- Financial Risk Management & Hedging Techniques
- Managing Exchange Rate & Interest Rate Risk
- Derivatives-Forwards, Futures, Options & Swaps
- Risk Management Glossary of Terms
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