Corporate Treasury Management: Foreign Exchange Management - Online

This course provides an in-depth understanding of the various risks (transaction, translation and economic exposure risks) a corporate is exposed to, when dealing in foreign exchange. The sources of these exposures and techniques to mitigate them, using different financial instruments are discussed. Various caselets in the form of simulations are provided for better understanding. A 10-point checklist for sharing currency risks in long-term contracts is one of the highlights of this course.

This is an online self study course that can be globally accessed 24/7 from any internet enabled computer.

Available TodayOnlineUSD$100
Instructional Method:
Self-Study
Level: Intermediate
CPE Credits: 14

New FX traders and investors, foreign exchange staff in commercial banks, middle office, auditors, securities firms, insurance companies and corporations, analysts, and junior traders.
Students will be able to:
  • Understand Various foreign exchange exposures
  • Understand Techniques for mitigating these exposures
  • Understand Real-life case studies on currency risk exposure
  • Understand Currency risk sharing agreement
Familiarity with basic financial concepts
Treasury Management – Scope and Importance
  • What is Treasury Management?
  • Structure of Treasury Management
  • Functions of Treasurer and Controller

Overview of Risk Management

  • Concept of Risk
  • Risk Management Process
  • Determination of Business Objectives
  • Identification of Risks
  • Measurement of Risk

Translation Exposure

  • Translation Exposure
  • Translation Methods
  • Accounting Treatment Under Fasb No. 8 and 52
  • Hedging Translation Exposure

Transaction Exposure

  • Steps in measuring Transaction Exposure
  • Spot Markets Vs. Forward Market Hedge
  • Hedging- Other Alternatives

Economic Exposure

  • The impact of Forex on Operations
  • Interface with Sourcing, Pricing, Production siting, Marketing and R&D
  • Fixed Vs. Variable costs
  • Exchange Rates:The impact on competitiveness
  • Management of Economic Exposure or Operating Exposure

Case Studies- Foreign Exchange Exposure

  • Volkswagen
  • Rolls Royce
  • Laker Airways
  • Lessons Learnt from these Case Studies

Currency Risk Sharing Agreement

  • Sharing Currency Risk in Long-term Contracts
  • Evaluating Agreements for Currency Risk Sharing
  • Range Forward vs. Currency Risk Sharing Agreement

JOB AIDS

  • Measurement Tools
  • Disclosures
  • Scope and Structure of FX and Derivatives Markets
  • Global Best Practices
  • Policy Templates
  • Regulations

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