ACT Treasury qualifications

This unit provided an overview of treasury and the core activities typically undertaken by a treasury function. It also examines different types of structures for the treasury function and the implications of each. In addition, it considers the key treasury policies and their impact on decision-making and activities.

The unit then considered two areas of crucial importance to treasury professionals – interest rates and foreign exchange.

In this unit the learner started by examining risk management policy and the importance of developing and applying a risk management framework.

A number of important associated elements are also explored, including the nature of risks that might arise in treasury and the risk appetite of the organisation. Risk policy plays a crucial role and this is examined in detail including how such policies are developed and applied within organisations.

The unit then focuses on the first two stages of a typical risk management process – risk identification and assessment.

Next the unit considered different techniques for managing risks, that have already been identified, assessed and evaluated. There is focus on a wide range of techniques and different areas of risk, including dealing with uncertainty. The importance of resilience and business continuity planning are also explored.

The unit concludes by exploring the importance of reporting and governance within risk management. This includes both internal and external risk reporting, including the importance of meeting the requirements of relevant international standards.

This unit focused on the role, responsibilities and activities of the treasury manager. It starts by considering the important role that treasury plays in helping a business to achieve its corporate objectives. It also explores the importance of reviewing and scanning for changes within the corporate finance and general business landscapes.

The unit then focuses on three key areas in relation to organisational improvements. These are: setting objectives; problem-solving; and project management.

The unit then examines concepts and theories relating to leadership and management, both in terms of driving treasury performance and building stakeholder relationships.

The concept of commercial acumen is explored together with tools to support the development of associated skills. Change management and innovation are examined including tools to support the identification of opportunities for the application of innovation within treasury.

By achieving this unit the learner would have focused on accounting, tax and regulatory issues of concern to treasury.

The accounting aspect is first addressed through examining the impact of the organisation’s structure on both operations and transactions.

Next the unit focuses on tax considerations and the implications for treasury planning and decisions. Both domestic and international tax are explored, especially in the context of typical treasury transactions.

It then focuses on a number of practical financial considerations and issues that are typically encountered by treasury. This includes the important areas of debt documentation and associated debt covenants. It also examines the implications of ISDA documentation.

Concluding by examining the impact of corporate governance and regulation on treasury activities, in particular, on the anti-money laundering and know your client responsibilities of treasury.

This unit focused on working capital and trade finance. It starts by providing an overview of both elements, focusing on a range of approaches and risks in the context of different businesses and activities. It provides an overview of both in relation to domestic and international trade.

The unit then focuses specifically on working capital management, assessing policies and techniques which can optimise an organisation’s working capital position. In particular the unit examines the management of trade payables, trade receivables, supply chain and inventory management.

Next the unit explores different cash management structures and techniques which can be applied to optimise the management of cash within the business.

The unit then evaluates different techniques for managing risk in trade finance areas. It considers economic principles in relation to trade and the evolution of trade finance. It also explores a number of trade finance related tools, techniques and products, including payments, collections, bonds and guarantees. It also examines specialist risk management tools applicable to international trade transactions.

Concluding by focusing on contemporary developments in relation to working capital and trade. It includes key topics such as the importance of managing counterparty risk and the evolving role of treasury in international trade transactions.

Managing cash and liquidity are vital functions of treasury in most organisations. In this unit the learner would start to understand the general principles relating to cash, liquidity and working capital.

To be effective, treasury professionals must understand the importance of these to the business. In addition to exploring the fundamentals of cash and liquidity, the unit also considers cashflow forecasting and the working capital cycle.

It goes on to examine the relationships between working capital and liquidity and the steps that can be taken, within the organisation, to improve its cash position.

The unit then examines considerations in relation to short-term borrowing and international trade. It also considers the use of commercial paper as a form of short-term funding. It explores intra-group funding and other alternative solutions, which may be more appropriate for the organisation.

The learner would then have explored other considerations relating to international trade transactions.

Finally, the unit focused on the practicalities of cash management.