Finance, Risk Management and Corporate Governance
Finance, Risk Management and Corporate Governance
OBJECTIVES
- specify the exact nature and scope of corporate financial reporting
- identify and criticize specific concepts, rules, and procedures are in place for corporate financial reporting
- understand multiple interpretations of financial statements via IFRS, FAS, SEC, etc
- how corporate governance begins, changes, and continues
- how reliable are executives in implementing best practices in corporate governance
- how boards/executives/management teams evaluated for ‘good’ corporate governance
- Identify and overcome limitations that are inherent in corporate financial reporting and/or corporate governance
- how important are qualitative judgments in corporate financial reporting and corporate governance
WHO SHOULD ATTEND?
Attendees are expected to be intellectually curious with a commitment to learning that requires significant personal effort. The nature of the course and of the materials dictate that interaction, commitment, and debate are the core components of the learning process. While no particular level of prior knowledge is needed, there is an assumption that the attendees are committed to immersing themselves in a learning situation.
COURSE OUTLINE
Day 1
The Challenge of Corporate Financial Reporting
- The Value Creating Company
- The Practice of Corporate Financial Reporting
- The Concepts from IASB, FASB, SEC, OECD, ad infinitum
- Dynamic Perspective of Business Financial Statements
- The Nature of Financial Statements
- The Context of Financial Reporting – roles played
- A Dynamic Perspective of Business
- Organizational planning framework
- Investor Relations roles
- Investment analysts roles
- The product / information / decision support cycle
- Strategic, tactical, and operational forecasts
- The strategic approach to business planning
- Various strategic and tactical approaches to business planning
- The Nature of Budgeted Financial Statements
Day 2
Assessment of Corporate Financial Reporting
- Management’s perspective
- Owners’ perspective
- Lenders’ perspective
- Private Equity’s view
- The flow of money in business
- Funding business operations
- Developing the business plan
- Identification of key value drivers
- Short-term versus long-term market issues
- Some Special Issues
Day 3
The Case for Corporate Governance
- Pro Forma Financial Statements and their use internally and externally#
- Cash Budgets – why analysts are so interested
- Strategic intent – why are analysts so interested
- Sensitivity Analysis for risk management in governance
- Principal-Agent theory and applications
- The Enron, Ahold, and Parmalat effects
- Stakeholder perspectives when governments are involved directly
- Independence in fact versus appearance
- What alternatives are available
Day 4
Risk Management as an integral part of Corporate Financial Reporting and of Corporate Governance
- Understanding uncertainty and risk/opportunity
- Identifying strategic financial risks
- Identifying operational risks
- Identifying functional financial risks
- Assessing financial risks in each perspective
- Finding our personal risk profile (appetite for risk)
- Clarifying desired outcomes, expected outcomes, and actual outcomes
- Performance measures – the need for FRM/ERM
- Quantitative and qualitative risks
- Developing FRM/ERM strategy – do we need a CRO?
Day 5
Value-Based Management as the Integration Process
- Definitions of Value – do they trust our plans?
- Value to the Investor Community – different investment profiles with different expectations
- Business Valuation from multiple perspectives
- Managing for Shareholder Value
- Shareholder Value Creation in Perspective
- Evolution of Value-Based Methodologies
- Creating Value in Restructuring and Combinations beyond planning and reporting- the case for real change!
- Value to the Investor, Lenders, Employees, Customers, Stakeholders
- Governing for Shareholder Value
- Evolution of Finance, Risk Management, and Corporate Governance
- Why Net Present Value is the decision criterion