Budgets are often criticised as being fine for financial control but not of much use in running the business. This module looks at best practice for preparing budgets whilst the ensuing modules provides an overview of how the budget process can be modified to make it really useful for the business. This designed to enable delegates to understand the critical aspect of corporate decision making and enhance their knowledge from the development of a strategic corporate financial plan, the raising of finance, the preparation and management of budgets to support the plan, the management of financial risk and ultimately the measurement and evaluation of performance.
Strategic Planning
The Objective of the Firm – Meeting Shareholder & Stakeholder Objectives
Agency Theory – The Relationship between Shareholders & Management
Creative Accounting and the Case of Enron
Financial Management & Financial Planning – The Scope, Role & Responsibilities of Financial Management
Preparing a Financial Plan – The Master Budget
Forecasting Future Cash-flows and Financial Modelling
Time Series Analysis, Correlation & Regression
Sources of Finance – Long Term & Short Term
Evaluation of the Types of Finance - Equity vs. Debt Finance
Hybrid Finance & Financial Engineering
The Dividend Decision
The Cost of Capital and Weighted Average Cost of Capital (WACC)
Capital Asset Pricing Model (CAPM)
Accounting Rate of Return (ARR)
Net Present Value (NPV), Internal Rate of Return (IRR) Capital Rationing & Payback
Definition of Budgets, the Budgetary Process and Budgetary Control
Types of Budgets-Fixed, Flexible, Incremental and Zero Based
The Purpose / Benefits & Problems / Limitations of Budgets
Setting / Implementing Effective Budgets - Eliminating the Problems
Responsibility Accounting and Absorption Costing
Activity-Based Budgeting / Costing (ABB, ABC)
Variance Analysis, Cost Behavior, Break Even Analysis & Sensitivity / What If Analysis
What-If Analysis combined with Du-Pont Analysis
Cash vs. Profit & The Cash Conversion Cycle
Calculating and Managing the Cash Flow Cycle
Cash Flow Ratios
Working Capital
The Cost of Maintaining Working Capital
Maintaining the Optimum Level of Working Capital
Working Investment Ratios
Preparing a Monthly Cash Flow Forecast
Risk Management & Types of Risk
Identifying Risk – SWOT Analysis
The Major Quantitative & Qualitative Risks Facing Companies
Establishing a Risk Management Strategy
Financial Risk Management & Hedging Techniques
Managing Exchange Rate & Interest Rate Risk
Derivatives-Forwards, Futures, Options & Swaps
Develop effective corporate financial plans aimed at maximizing return and minimizing risk
Prepare, manage and control budgets to support the corporate financial plans
Identify and manage financial risk effectively
Measure and manage performance effectively
Create opportunities for your personal development and increased financial awareness
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