AFF5250 - Corporate treasury management

Leader: Dr Rod Lambert

Offered

Caulfield First semester 2007 (Day)
Caulfield First semester 2007 (Evening)
Caulfield Second semester 2007 (Day)
Caulfield Second semester 2007 (Evening)
Caulfield Summer semester A 2007 (On-campus)

Synopsis

Topics include objectives, role, and functions of corporate treasury; its structure, ethics, policies; banking interface; treasury performance evaluation; links to corporate strategy; physical and derivative financial markets and instruments; short term and long term financial planning and forecasting; working capital management and forecasting; evaluation, management and business risks of investment opportunities; dividend policy; funding alternatives; financial risk assessment and management including interest rate risk; foreign exchange risk, credit risk and credit ratings; international financial markets and issues, treasury management systems, and recent trends in treasury management.

Objectives

The learning goals associated with this unit are to:

• describe the objectives, role and functions of corporate treasury management; its structure, ethics and policies; its interface with bank systems; the capital markets and physical and derivative instruments that it deals in, including international markets and international trade; recent trends in treasury management; and the major elements of managing the treasury function itself, including treasury management systems and treasury performance evaluation
• explain the link between corporate strategy and treasury operations, and develop a basic corporate strategy linked to a long term financial plan and forecast
• complete financial analyses of a firm, including developing a short term financial plan and forecast, and recommending improvements in the management of liquidity and working capital; evaluating investment opportunities including business risks and project management risks; determining the capital structure of a firm and making financing decisions in the light of this structure; and determining an appropriate dividend policy for a firm in the context of its investment opportunities
• describe the management principles for managing and hedging liquidity risk, interest rate risk, foreign exchange risk, and credit risk (including the use of credit ratings)
• develop basic teamwork and project management skills; written communication skills, and presentation skills.

Assessment

Assignment: 30%
Presentation: 10%
Case studies 10%
Examination (3 hours): 50%

Contact hours

3 hours per week

Prohibitions

AFF4200