Institute of Banking and Finance

Bahauddin Zakariya University,Multan.

Course Outline: Treasury, Funds and Insurance Management Level: BBA 6th (B&F)

Course Instructor: Waqar Sadiq Email: pakistan201090@yahoo.com

Course Objectives:

 The course aims to provide insights into the nature of Treasury Management, its related
products, and the role of Treasury Management in maintaining a healthy corporate
operational portfolio of Banking and Non Banking entities. This course is designed
to provide an overview of financial markets and some of the popular Treasury
related instruments traded through Financial Markets. This course will provide a
basic and comprehensive description of the Treasury based operations of global
money & capital, foreign exchange and derivative markets available for
trading, hedging & investment from Banking and Non Banking entities.

Lecture TOPICS Recommended

# Reading
An overview of –Treasury & Funds Management-Objectives- Concepts Book 1: chapter 1
Organizagtion of Treasury Evolving Role of Treasury as a Profit Centre-
1-2 Treasury Controls,Position of Treasury within the CorporateStructure Treasury
Centralization
3-4 Cash Management:Cash Forecasting - Cash Forecasting Model 49 Information Book 1: chapter 1 &2
Sources for the Cash Forecast 53-Measuring Cash Forecast Accuracy 54 Cash
Forecasting Automation 55
Bullwhip Effect 57-Business Cycle Forecasting 58-Cash Forecasting Controls 60
Cash Forecasting Policies 62 -Cash Forecasting Procedure (Teacher’ Presentation)
5-6 Risk Management: Introduction 3 Why Manage Financial Risk? 3 Book 2: chapter 1
Principal Treasury-Related Financial Risks 4-Management of Financial Risks
10Enterprise Risk Managemen (Teacher’ Presentation)

7-8 Treasury Policies for Debt, Foreign Exchange and Interest Rate Exposure Book 2: chapter 2
Management 25 Introduction 25-Debt Management 25-Foreign Exchange Risk
Management 29-Interest Rate Risk Management 36-Case Study

9-10 Debt Capacity 55-Introduction 55-Debt Versus Equity 55 Book 2: chapter 3

The Impact of Debt on Financial Returns to Shareholders 57
Debt Equity Structure: Theory 60 Financial Ratios 65 Debt Capacity: Conclusion 69
Case Study

11-12 FINANCING ALTERNATIVES 75- Forms of Bank Finance 77 Part II- Book- 2 - Chapt 4-
Aspects of Syndicated Revolving Facilities 82
Advantages and Disadvantages of Bank Finance 89-Documentation 91
Specialist Financing 95-Case Study: Acquisition Finance
13-14 Introduction to the Financial Markets Book 3: Part I-chapt- 1
Key market participants-The role of government and the central bank Part IV-chapt- 1
1
 Bank structure and the role of the Treasury departmentKey macro-economic indicators
Money Market Intruments Capital Market & Instruments
15-16 Revision for Mid, Assignments & other activities

17-18 Corporate Bonds-Overview of corporate bonds Corporate credit ratings-The Book 2: Part II-chapt- 5
corporate bond issuance process -Corporate bond variations-Eurobonds-Medium Term
Notes Bond Valuation and Credit Ratings Introduction to Bond Valuation Credit
Ratings
19-20 The Bond Markets 120-Advantages/Disadvantages of Bond Markets 120 Book 2: Part II-chapt- 6
The Pricing of Corporate Bonds 122-Bond Markets: General 124
Issuing a Public Bond: Eurobond 125-Medium-Term Note Programmes 132

21-22 Foreign Exchange (FX) Markets and Derivatives 180 Spot Foreign Exchange 180 Book 2: Part III-chapt-9
Forward Foreign Exchange 185-Foreign Exchange Swaps 189-Foreign Currency
Options 194-Use of Options for Corporate Purposes 199-Exercises
23-24 Role of Bank’s Treasury in International Trade- Collection Methods- Exchange Book 5: Part VII-
Risk Hedging- Forward Contract Fixed and Option- Swap Transaction- Currency
Swap. - Presentation
25-26 An overview of –Insurance Management-The Insurance Mechanism Book 4: -chapt-1 & 2
characteristics of insurance- the law of large numbers- insurable and
uninsurable risks- Adverse selection- Liability insurance- Types ,benefits and
cost of Insurance
27-28 Insurance & Risk Management- Steps & benefits of Risk Management- Book 4: -chapt-4 & 5
Implement & Monitor the Risk Management Programme & its Benifits .
Insurance Market Dynamics. Loss Forecasting,

29-30 The Changing Scope of Risk Management. . Financial Analysis in Risk Book 4: -chapt-6
Management Decision Making. Other Risk Management Tools. Types of of
Insurance & Marketing System. Re Insurance and alternatives. Underwriting

Recommended Reading
1:- CORPORATE TREASURY AND CASH MANAGEMENT:
By Robert Cooper published 2004 by PALGRAVE MACMILLAN 175 Fifth Avenue,
New York, N.Y. 10010

2:- INTRODUCTION TO FINANCIAL SYSTEM & MANAGEMENT :

Published by The Institute of Bankers Pakistan.

3:- FINANCE OF INTERNATIONAL TRADE & RELATED TREASURY

OPERATIONS: Published by The Institute of Bankers Pakistan.

4:- PRINCIPLES OF RISK MANAGEMENT AND INSURANCE:

Eleventh Edition by Rigda –        Published by- Pearson Education, Inc.