Finance, Risk Management & Corporate Governance
Overview
This corporate governance and risk management course offers insights into the complex world of finance, risk management, and corporate governance. The corporate governance and risk management course delves into the pivotal role that capital markets play in globalization and their significance for a well-functioning society. Due to these markets' central and essential nature to our societies, paying close attention to their proper functioning and oversight is imperative. Thus, this corporate governance and risk management course provides a comprehensive overview of the intricate interaction between management and various corporate stakeholders. The corporate governance and risk management course tackles the challenge of meeting these stakeholders' diverse and complex demands through efficient resource allocation over an extended timeframe, incorporating concepts such as financial risk management tools and systems, business risk in financial management, and corporate financial risk management strategies.
Objectives
By the end of this corporate governance and risk management course, participants will be able to: Specify the exact nature and scope of corporate financial reporting. Critically assess specific concepts, rules, and procedures related to corporate financial reporting. Comprehend the importance of working capital in today's market dynamics. Understand the implications of capital structure on a firm's success. Learn how improper capital budgeting can severely impact business outcomes. Identify and navigate limitations inherent in corporate financial reporting and governance. Manage financial risk in project management and make informed decisions. Enhance skills in all areas of finance and governance. Contribute more effectively to the finance and governance process within their organizations. Recognize the significance of professional development in addressing current and future challenges in finance and governance. Increase recognition of their learning and professional commitment by the organization. Engage with and navigate within a challenging learning environment. Integrate business plans with strategic intents. Thereby minimizing inter-functional conflicts.
Audience
Professionals who wish to improve their finance knowledge and skills Members of the operational management team Professional who have influence over operational or strategic decisions Consultants who provide advice on operations or strategy Managers who have responsibility for the management of risk
Methodology
This collaborative Financial Risk Management Certification Course training program (course name) will comprise the following training methods: Lectures Seminars & Presentations Group Discussions Assignments Case Studies & Functional Exercises Like all our acclaimed courses, this training program also follows the ‘Do-Review-Learn-Apply’ model
Outline
Unit 1: Finance & Working Capital – Liquidity or Bankruptcy: Finance is a numbers game. Yet finance is more than the numbers. The three significant components of finance. Working capital (WC) defined. Relationship to current ratio. Components of WC. Inventory. Accounts receivable. Cash. Accounts payable. Notes payable. The critical rations to compute. What should they be and why? The questions to ask. The answers you want. Unit 2: Capital Structure Delving into the concept of capital structure and its significance. What is capital structure, and why is capital structure important? What is equity capital? Equity capital - calculating its costs/required rate of return. What is debt capital? Debt capital - calculating its costs/required rate of return. Why is the Weighted Cost of Capital (WACC) so important? Calculating your WACC. When and how to use WACC? Leverage: two-edged sword - defined. Operating leverage - calculated. Financial leverage - calculated. Combined leverage - Wow! Look at the impact. Unit 3: CAPEX - Analysis of Investment Decisions with What-if Risks: Discussing the importance of cash flows and the time value of money. Discuss the capital project evaluation process. Ideas for the future with a multiple-period horizon. Estimating cash flows within the business system. Net present value (NPV) and internal Rate of Return (IRR) are preferred methods. Profitability Index (PI) and Modified Internal Rate of Return (MIRR) are reasonable alternatives. Defining the approval criteria and review process. Post-implementation audits of capital projects. Refinements of investment analysis. Dealing with Risk and Changing Circumstances – how do we explain? Cost of capital and return standards. Benchmarking discounts and hurdle rates. Unit 4: Risk Management as an integral part of Corporate Governance: Gaining an understanding of uncertainty, risk, and opportunity. Identifying strategic financial risks. Identifying operational risks. Identifying functional financial risks. Assessing financial risks in each perspective. Finding our risk profile (risk appetite). Clarifying desired outcomes, expected outcomes, and actual outcomes. Performance measures - the need for FRM/ERM. Quantitative and qualitative risks. Developing FRM/ERM strategy - do we need a CRO? Other risk issues to be concerned with are joint ventures, alliances, product liability, environmental risks, outsourcing risks, growth risks, R&D risks, natural disasters, catastrophic risks, supply chain risks, reputation risks, and psychology of risk. Unit 5: Corporate Governance: Defining Corporate Governance and Explaining its relevance in today's business environment. Corporate governance environment. Relevance of corporate governance. Perspectives on corporate governance: Shareholders vs. stakeholders. Voluntary vs. enforcement. 1-Tier vs. 2-Tier boards. Chairman/CEO duality. The independent director. Corporate governance models. Structure and practices. Emerging trends in corporate governance. Principal-agent theory and applications. Independence vs. appearance.