Diploma in Treasury Management - Working capital and trade finance

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.