Finance, Risk Management and Corporate Governance

Objective:

At the end of the training, participants will be able to:

• Understand and evaluate corporate financial reports
• Determine sources of capital, and capital structure
• Identify and appraise wealth-generating investments
• Recognize, 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
• Analyzing 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 and 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

• Recognizing 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