Oxford Program in Financial Excellence

Introduction:

This seminar at Oxford Program in Financial Excellence is designed for business practitioners who seek to deepen their understanding of contemporary financial management practices. The course will unravel the complexities of finance, equipping you with the tools and insights needed to achieve both personal and organizational goals.

Objectives:

Upon completing the Oxford Program in Financial Excellence course, participants will:

• Master the comprehensive management of corporate financial performance, including strategy development, planning, budgeting, and performance monitoring.
• Gain practical experience with best practices in financial performance management to enhance real-world corporate financial outcomes.
• Enhance their financial skills and knowledge.
• Understand major contemporary issues in international corporate finance and budgeting.
• Make informed finance and capital budgeting decisions to increase organizational value.
• Identify areas for improvement in their company's financial management, advancing their career development.
• Apply sophisticated investment appraisal techniques.
• Recognize and manage financial risks effectively.

Training Methodology:

• Group discussions
• Analysis of practical cases
• Workshops
• Financial models
• Feedback from peers

Course Outline:

Unit 1: Corporate Financial Planning

• Strategic planning
• Harmonizing shareholder and stakeholder interests
• Agency theory and corporate governance
• Case study: Enron's fraudulent reporting
• Developing and implementing strategic plans
• Financial planning and budgeting
• Time series econometric modeling
• Regression and correlation
• Business forecasting

Unit 2: Financing The Plan

• Long-term and short-term financial sources
• Financial facility assessments
• Equity and debt finance
• Mixed finance and financial engineering
• Dividend payments
• Cost of capital (WACC, CAPM)
• Investment appraisal techniques (PBP, ARR, NPV, IRR)
• Capital constraints

Unit 3: Planning and Controlling Budgets

• Definition and types of budgets
• Budgeting processes and challenges
• Budget control and responsibility accounting
• Activity-Based Budgeting/Costing (ABB, ABC)
• Variance analysis
• Cost behavior and break-even analysis
• Sensitivity and what-if analysis

Unit 4: Managing and Controlling Cash Flow

• Cash versus profit
• Cash cycle and cash flow ratios
• Working capital management
• Preparing monthly cash flow plans

Unit 5: Controlling Risk

• Risk management fundamentals
• Types of financial risks
• Risk management frameworks and strategies
• Financial market risks and derivatives
• Risk management vocabulary

Unit 6: Financial Market Intermediaries

• Equity markets (IPOs, market indices, international relationships)
• Bond markets and investment timing
• Foreign exchange and derivatives markets
• Understanding risk-return relationships

Unit 7: Evaluating Investment Opportunities

• Modern portfolio theory and CAPM
• Time value of money and discounted cash flow
• Gordon growth model for stock valuation
• Cost of debt and capital
• Scenario planning and IRR methods
• NPV and payback period calculations

Unit 8: A Walkthrough of an Annual Report

• Balance sheet overview
• Revenue, expense, and net profit depiction
• Statement of cash flows
• Ratio analysis and its real-life applications

Unit 9: The Corporate Financing Decision

• Financial leverage and capital structure theories
• Dividend decisions and the clientele effect
• Taxation effects and principal-agent problems
• Market for corporate control

Unit 10: Risk Management

• Hedging exchange rate risks (forwards, options, collars)
• Hedging commodity price fluctuations (options, futures)