• S P E C I A L I S T C O U R S E

Managing the three main types of FX risk and the importance of formulating a suitable hedging policy.

Advanced Foreign Exchange Risk Management

TutorNicholas Franck EuroFinance Tutor

OVERVIEW

This course will look at the opportunities treasury technology can provide. Discover whether you need to completely re-engineer your treasury technology, replace legacy systems or simply upgrade and enhance existing infrastructure. This includes a framework of how to define your requirements for the optimum systems configuration for your organisation and how to run a successful selection and implementation project and the benefits of efficient integration.

LEARNING OBJECTIVESBy the end of the course, you will be able to:

Understand the dynamics and drivers of different categories of FX risk, such as cash flow, intercompany lending, translational and balance sheet risk.

Be able to develop an FX risk management program for different categories, especially to build an end-to-end operating model

Learn how to make the most of a Treasury Management System in managing FX risk and streamline work flows

Have knowledge of different ways of reporting FX, the pros and cons of each option and be able to guide your organisation in making a decision

Be able to critically assess and review a corporate’s FX risk management policy

THE TUTOR

Nicholas Franck EuroFinance Tutor

Nicholas (‘Nick’) Franck has worked 3O+ years in corporate treasury, trading, transaction banking, and treasury consultancy: 19 years in multi-industry corporates (IBM, International SOS, Agility Logistics and Oriflame Cosmetics;) 7 years in banks (Merrill Lynch and Chase Manhattan;) 6 years in treasury consultancy (CFO Solutions.)

In these companies, his work has been mainly on startups and change. He has worked in and advised on technology, processes, outsourcing, treasury functions & treasury centres, worldwide. His expertise covers cash, liquidity, working capital and risk management within a business’s broader finance and commercial context. His in-depth knowledge makes him a versatile, convincing and compelling trainer.

WHY TRAIN WITH EUROFINANCE?

Real world treasury training Leave with skills and techniques that you can immediately apply when you get back to the office.

Unrivalled knowledge of current best practice We talk to treasurers on a daily basis and know what matters most to the profession.

Expert tutors We have secured the services of the leading tutors in the profession with both banking knowledge and corporate expertise to give you the best all-round training available.

Truly global We run treasury events all around the world and attract a very international audience.

Practical teaching method Our courses aren’t just theory, we use real-life case studies and group exercises to illustrate each learning point.

We are the treasury specialists EuroFinance has been working exclusively with the treasury and cash management profession for over 2O years.

Official publication

DAY 1UNDERSTANDING FX

O8:3O Registration

O9:OO Introduction

• Nature of FX risk in the international enterprise • Where FX impacts the business • The hedging dilemma • Why FX forecasts can be wrong • Recent developments impacting FX risk • Increased market volatility (Euro crisis, Brexit,

international trade conflict) • Regulation (Dodd Frank, EMIR) • Global economy transacts increasingly cross border • Illiquid currencies • Understanding the nature and impact of illiquid

currencies • Managing FX risk in emerging markets • Corporate policy for illiquid currencies • Practical exercise: Designing a corporate policy for FX

risk management

1O:45 Refreshment break

11:OO Cash Flow FX exposures

• Understanding transactional FX risk • Economic risk versus accounting exposure • Cash impact versus book values • Commercial risk • Non-operating assets and investments • FX instruments and their use • Ease of use, depth and liquidity of market • Valuation and accounting • The case in favor of “plain vanilla” instruments: keep

it simple • Advanced FX Instruments • The latest treasury technology • An overview of treasury management systems • Budgeting for currencies • Setting FX rates for planning purposes

13:OO Lunch

14:OO Case study: Designing an FX hedging program in a corporate organisation

• Underlying FX exposure • What risk to hedge, and what to retain • Forecasting exposures • Defining risk and risk management targets • Risk as a proportion of exposure

• Value at Risk approach • Market driven approach

15:3O Refreshment break

15:45 Case study: Continued

• Operating model • Defining governance • Exposure monitoring • Roles and responsibilities: who does what? • An overview of hedge accounting • Definition and documentation of hedged risk • Effectiveness testing methodology

17:OO End of day 1

DAY 2MANAGING CURRENCIES

O9:OO Intercompany FX risk

• Understanding intercompany FX • Intercompany trading versus holding investments • Corporate transactions • Royalties • Management recharges • Dividends • Balance sheet FX risk • Pros and Cons hedging the balance sheet • P/L and cash impact • Netting systems • Concept, benefits and operating principle • Designing a Netting programa • Defining a Netting process • Payables versus receivables driven • Issue resolution • Special purpose Netting system versus ERP

Netting-module • Managing intercompany lending • Relevance in the international corporate • Concept and corporate policy • Terms of loans and loan documentation

1O:45 Refreshment break

11:OO In-house bank / Treasury Centre

• Concept and scope • Default intercompany lender • Netting Centre • Cash pool leader • Treasury Business support • Domicile and its impact • Choosing a functional currency • Legal / regulatory aspects

13:OO Lunch

14:OO Practical exercise: Operating model for an in-house bank

• Cash risk versus FX exposure • Defining a risk portfolio • Governance and control • Utilising Treasury Management Systems

15:3O Refreshment break

15:45 Reporting FX

• Disclosing FX: pros and cons of different options • FX hedging impact included in operating result • FX hedging shown as a separate line item • Practical exercise: examples of different reporting

approaches • Closing remarks: why FX is notoriously controversial in a

corporate organisation

17:OO End of day 2

DATES & LOCATIONS

London, UK | 27-28 April 2O2O Register online at:

www.eurofinance.com/intro-london

VENUE INFORMATION

Information on the venue/hotel will be provided 2-4 weeks prior to the start of the course. Travel should only be booked once the venue details are received.

FURTHER ENQUIRIES

T: +44 (O)2O 7576 8555 E: registrations@eurofinance.com

LET US CREATE THE COURSE FOR YOU!

If you have a whole team or project to develop, our customised training service is the most cost effective solution. Get a course tailored to your exact needs at a time and location to suit you.

For more information visit:

www.eurofinance.com/customised

or contact Laurence Fiole-Jones:

T: +44 (O)2O 7576 8512 E: training@eurofinance.com