Finance, Risk Management and Corporate Governance

Intorduction

This course offers insights into the main factors that are essential to the successful financial management of corporations. In an uncertain economic environment managers need to be aware of the power and importance of key stakeholders – shareholders, bankers, customers and suppliers. Managers need to efficiently allocate resources, whilst recognizing environmental and ethical concerns, controlling risks, and effectively communicating strategy and performance.

This course will introduce delegates to the terminology and techniques that are commonly used in corporate finance, and will provide significant experience in terms of content, discussion, and case study working.

This course will feature:

• Relevance and importance of finance to the success of your business
• Sources and types of finance that are most relevant to your business
• Meaning and importance of corporate governance to the effective financial management of your business
• Techniques available to determine the most profitable and worthwhile investments for your business
• Effective ways to control the financial risks of your business

Objectives

• Understand and evaluate corporate financial reports
• Determine sources of capital, and capital structure
• Identify and appraise wealth-generating investments
• Recognise, quantify, and control financial risk
• Apply principles of good corporate governance

Content

Finance and financial information

• The meaning and importance of finance in business
• The importance of financial information – internal and external
• The corporate annual report and the financial statements
• Capital employed: long – term assets and working capital
• Analysing financial statements for profitability, liquidity, efficiency & financial structure
• Investment ratios and market data sources

Financing the Business and Capital Structure

• Sources and types of long term finance
• Sources and types of short term finance
• Calculating the Cost of Equity – what your shareholders expect
• Calculating the Cost of Debt – it depends on your credit rating
• The weighted average cost of capital (WACC)
• Choosing the best mix of equity and debt

CAPEX - Analysis of Investment Decisions

• Growing your business with new investment projects
• Preparing spreadsheet forecasts for investment appraisal
• Basic appraisal techniques: Accounting Rate of Return (ARR) and Payback
• Discounted cash flow appraisal techniques:  NPV and IRR
• Capital Rationing and the Profitability Index (PI)
• Dealing with risk in investment appraisal

Financial Risk Management

• Risk and uncertainty in business
• How to manage risk – the four Ts
• Financing risk and operating risk
• Foreign currency risk management
• Interest rate risk management
• Role of Internal Audit, Audit Committee, and Chief Risk Officer

Corporate Governance

• Recognising the needs of stakeholders
• The origins and development of corporate governance
• Corporate governance codes and regulation
• The role of the Board of Directors
• International corporate governance and the OECD
• Emerging trends in corporate governance