Middle & Back Office Treasury Management

INTRODUCTION Treasury back office and middle operations now involve far more than simply the processing of deals. They are now a vital element in the creation of value for the entire treasury operation, by assisting in enhancing the returns of the operation and at the same time reducing the level of risks to which the operation is exposed. To perform this new role it is vital that a pro-active management process be adopted. Assuming a proactive approach is increasingly made difficult by the growth in the complexity of the financial instruments that Treasury operations are now involved with and the growth in activity in this highly globalised activity. The course is an intermediate level course that introduces delegates to the range of risks that confront treasury operations, the new derivatives products and the role and approaches of the back office and middle office in the management of these risks and products. LEARNING OUTCOMES Understand the fundamentals of syndicated lending Common types of Syndicated Facilities Attractions of Syndicated market Describe the various roles & responsibilities of the different participants in the Syndication Term Sheet & Cost Analysis The various stages of the transaction cycle & the work to be carried out respectively Understand some pertinent documentation terms Usefulness of LMA & secondary market in syndicated lending WHO SHOULD ATTEND This course is ideal for Treasury Finance, Middle Office Executives, Back Office (Settlements) or IT Managers who are contemplating expanding their knowledge of issues in a treasury environment. Treasury Finance executives who are involved in the banking industry to update their knowledge on management issues in this highly specialised area Treasury Operations staff who wish to enhance their knowledge of major world markets and learn how to relate procedures to different instruments IT executives and Project managers from banks that are developing treasury systems but are not familiar with common market terminology and processing implications of products Compliance, Legal and Audit executives who are involved in the banking industry should attend the course so they become familiar with best practice standards PRE-REQUISITE(S) This course is recommended for those with at least 1 year technical exposure to financial markets in either a middle, back office or treasury support environment. Adequate use of a financial calculator is required, a basic knowledge of common investment products and terminology and use of a spreadsheet. THINGS TO BRING None. COURSE OUTLINE Day 1: Capital Requirement Module 1 - Introduction - Quality and Risk Control Quality defined in terms of the role of back office Pre-emptive quality controls

Organisation and reporting lines Separation of back office functions: Front office.OPERATIONS The elements of an effective control process Optimum control points Key risk controls Module 2 . fines and losses Brokerage Margin control Management information Settlement Status reports Comparative risk analysis Structure of reports Day 3 Module 8 .The Role of Middle Office Middle office’s part in overall risk control Structure.The life of a Deal Types of deals Processing overview Deal input and verification Confirmations Module 6 . middle office and back office Accounting and audit Case Study – Barings plc Module 5 .Key Back Office Functions Revenue Management Cash and Nostro Management Errors.Clearing and Payment Systems Types of systems and the concept of good value International and national systems Delivery versus payment systems Netting systems Module 7 . reporting lines and responsibilities Data and deal control P & L reconciliation Portfolio controls .Understanding Treasury Risks Market Risk Credit Risk The interrelationship of market and credit risks Techniques to measure Module 3 .Understanding Treasury Risks (cont) Volume and Liquidity Risk Documentation and Settlement Risk Operating and Processing Risk Fraud Risk Business Continuity Risk Case Study and Workshop Day 2 Module 4 .

OPERATIONS Business continuity Dealing with auditors and financial control Module 9 .Expense Control Pre-emptive Allocation problems Reporting Transfer pricing .Limit Control Mechanisms The types of limits Credit limits Position limits Portfolio limits Delivery/settlement limits Establishing limits The structure of limits Control – reconciliations. unmatched etc Module 11 .Documentation Control and Compliance Documentation schedules Status reports Control of new and/or exotic products Procedure manuals and codes of conduct and the approval of waivers Prevention of money laundering Module 10 .

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