The aims of the module are to equip students with the knowledge and skills for managing cash, liquidity and treasury departments in local and multinational organisations and to also give them critical knowledge of the structure and operations of financial markets and institutions worldwide. Topics that will be considered will include the structure, organisation, operations and functions of a treasury department. An overview of the financial markets and institutions worldwide. The roles of central banks, commercial banks, investment banks and non-bank financial institutions in financial markets. Government’s influence on exchange rates and interest rates. Foreign exchange markets structure, participants, dealing conventions, foreign exchange rate theories and their application(s).
The concepts of cash and liquidity management, the benefits of cash flow forecasting, the methods that are often used to determine discretionary and non-discretionary cash payments and receipts in different businesses, and forecast cash flows. Working capital cycle, and the impact that changes in working capital may have on the liquidity of a business. Techniques for establishing counterparty credit limits, debt and equity issuance and documentation procedures, credit rating, managing bank relationships, intra group funding, alternative funding solutions, including the use of financial technologies, crowd funding and cryptocurrency markets, securitisation, digital/AI financing, ESG/sustainable/green financing, emerging markets finance will also be covered. Cash and liquidity management strategies, treasury operations and controls – including treasury systems, policy, objectives, corporate governance, controls, ethics and reporting, as well will be considered.
Learning Outcomes
By the end of the module students should be able to:
Critically determine how a treasury department should be organised locally and/or internationally in order to achieve its key performance indicators efficiently
Assess alternative funding solutions that a firm can use locally and/or internationally including the use of foreign exchange and international financial markets, financial technologies, crowd funding and cryptocurrency markets
Critically evaluate various strategies that can be used to manage relationships with banks, other creditors, and shareholders globally, as well as strategies for equity and debt issuance and documentation procedures and records
Critically review the types of treasury technology that can be used to carry out treasury activities effectively; and
Select the most appropriate management solutions, including payments systems, in order to optimise cash position, net interest expense or income, while maintaining the organisation’s operational flexibility and its reputation locally and internationally.
Assessment
36340-01 : Continuous Assessment : Class Test (20%)
36340-02 : Group Video : Group Assessment - Practical (30%)
36340-03 : Exam : Exam (Centrally Timetabled) - Mixed (50%)
Assessment Methods & Exceptions
Assessment: 7-minute individual video presentation (50%) 2-hour exam (50%)
Reassessment: Students who fail the module will resit the failed component(s) only.
