UNDERSTANDING FINANCE TO INFLUENCE STRATEGIC DECISIONS

Objective:

• Apply strategic thinking to improve financial decision-making and maximize shareholder wealth
• Analyze and interpret the three primary financial statements to support financial planning, budgeting, and business decisions
• Evaluate alternative costing systems to improve budgeting accuracy and financial performance
• Identify and assess internal and external sources of finance to support organizational growth
• Apply Discounted Cash Flow (DCF) techniques for effective capital investment appraisal and budgeting decisions

Content:

Strategic Financial Management and Corporate Value Creation

• Linking strategic management, financial planning, budgeting, and decision-making
• Aligning financial objectives with corporate strategy
• Creating shareholder value through effective financial management
• Corporate governance and financial accountability

Financial Statements and Financial Decision-Making

• Understanding the income statement
• Interpreting the balance sheet
• Analyzing the statement of cash flows
• Using financial statements to support planning and decision-making

Financial Planning, Financing and Capital Structure

• Financial planning, modelling, and forecasting
• Determining organizational financing requirements
• Internal and external sources of finance
• Cost of equity, cost of debt, and Weighted Average Cost of Capital (WACC)
• Optimizing capital structure for sustainable growth

Cost Management and Investment Appraisal

• Improving costing and performance measurement systems
• Applying Activity-Based Management (ABM) to support decision-making
• Capital investment appraisal using Accounting Rate of Return (ARR) and Payback Period
• Discounted Cash Flow (DCF) techniques including Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), Equivalent Annual Cost (EAC), and Profitability Index (PI)
• Sensitivity analysis, scenario analysis, and financial simulation techniques

Performance Measurement and Financial Risk Management

• Linking strategic objectives to Key Performance Indicators (KPIs)
• Managing exposure to interest rate and foreign exchange fluctuations
• Identifying and assessing financial risks
• Using insurance and hedging strategies to mitigate financial risk

For Whom:

• Accountants and Financial Accountants
• Financial Controllers and Finance Managers
• Finance Directors and Chief Financial Officers (CFOs)
• Budgeting, Planning, and Financial Analysis Professionals
• Business Professionals involved in manufacturing, engineering, human resources, and project management
• Professionals responsible for strategic planning, budgeting, and financial decision-making in corporate and government organizations