Corporate Financial Planning, Budgeting & Control
Course Code: FA04
►Course Objective
- Develop effective corporate financial plans aimed at maximising return and minimising risk
- Evaluate the various methods of finance and make successful capital investment decisions
- Prepare, manage and control budgets to support the corporate financial plans
- Identify and manage financial risk effectively
- Measure and manage performance effectively
- Create opportunities for your personal development and increased financial awareness
►Target Audience
- Non-financial and financial personnel
- Managers and those with financial responsibilities
- Financial decision-makers, whose techniques of decision-making and analysis will be improved through attendance
- Professionals acting upon the financial decisions of others, who will gain an appreciation for decision-making thereby ensuring shared values within the organisation
- Analysts whose role involves evaluating and identifying market and competitive trends
- Junior managers involved in risk managements
- Managers involved in planning and decision-making
- Financial planner
►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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