Finance and Banking

Building Cash Flow Forecasting Models for Financial Institutions

Move cash flow forecasting models from general awareness to a repeatable, reviewable practice.

  • 5training days
  • 4modules
  • 8sessions
  • 32topics
View packages and pricesCourse outline
Building Cash Flow Forecasting Models for Financial Institutions
5days

About the programme

Course Overview

Growth built on poorly controlled cash flow forecasting models reverses faster than it accumulated. In finance the difference between a healthy position on forecasting models and a dangerous one is often a single assumption. Plans for this strand of financial and banking practice often fail at the handover point between functions. It is appropriate for those preparing to take on wider responsibility for cash flow forecasting models. Mature organisations treat the financial and banking practice capability as a standing capability rather than a project that finishes. They acquire practical criteria for judging when forecasting models is working and when it is only appearing to. The teaching approach is deliberately practical: participants build a control framework for cash flow forecasting models as they go. The programme converts forecasting models from an area of general awareness into a set of repeatable practices. Participants leave with a plan for this strand of financial and banking practice sized to what their organisation can realistically absorb.

Expected Learning Outcomes

  • Define the risk appetite applying to cash flow forecasting models and translate it into operating limits.

  • Adapt recognised practice on forecasting models to local constraints without hollowing it out.

  • Sequence improvements to cash flow forecasting models so that each step makes the next one easier.

  • Document decisions about forecasting models in a form that remains useful after the people change.

  • Establish the segregation of duties required around cash flow forecasting models.

  • Plan the remediation route when a weakness in forecasting models is identified.

  • Assess the capital and liquidity implications of cash flow forecasting models.

Who Should Attend

  • Relationship and product managers whose targets depend on cash flow forecasting models.

  • Department heads accountable for the results of forecasting models.

  • Internal auditors reviewing the controls around cash flow forecasting models.

  • Investment and portfolio managers exposed to forecasting models.

  • Training and development staff building internal capability in cash flow forecasting models.

  • Regulatory reporting analysts covering forecasting models.

Course Modules

Open any module to see its sessions and topics.

01

Cash flow forecasting models: exceptions, breaches and remediation

2 sessions · 8 points

Session 1The early warning on cash flow forecasting models that arrives in time

  • Prepare the summary of cash flow forecasting models that senior management will read.
  • Identify the key controls over forecasting models and who tests them.
  • List the assumptions in any model supporting cash flow forecasting models and when each was last challenged.
  • Translate the appetite for forecasting models into limits someone monitors daily.

Session 2Handling a breach of policy on forecasting models properly

  • Define the trigger that would require cash flow forecasting models to be redesigned.
  • Record what was learned when forecasting models did not go as planned.
  • Agree the indicators that will show whether cash flow forecasting models is improving.
  • Review concentration by counterparty, sector and geography inside forecasting models.
02

Forecasting models: measurement, models and their assumptions

2 sessions · 8 points

Session 1What forecasting models does to capital and liquidity under stress

  • Verify reconciliation and settlement controls covering cash flow forecasting models.
  • Prepare the evidence pack demonstrating forecasting models operated as designed.
  • Decide what will be stopped to create capacity for cash flow forecasting models.
  • Establish who is informed, consulted and accountable in forecasting models.

Session 2Reporting forecasting models so the reader can act on it

  • Design the exception process for cash flow forecasting models and require a documented rationale.
  • Establish the boundary of forecasting models and record what sits outside it.
  • Anticipate the objections cash flow forecasting models will raise and prepare the answers.
  • Document the remediation plan for each known weakness in forecasting models.
03

Forecasting models: stress testing and scenario analysis

2 sessions · 8 points

Session 1Keeping forecasting models alive after the initial push

  • Review the pricing of cash flow forecasting models against the risk being assumed.
  • Identify single points of dependency in forecasting models and reduce them.
  • Define acceptance criteria for cash flow forecasting models in advance.
  • Confirm reporting on forecasting models reaches the committee that can act on it.

Session 2Escalation and decision rights in cash flow forecasting models

  • State the risk appetite for cash flow forecasting models as a number, not an adjective.
  • Set early warning indicators for forecasting models with defined action thresholds.
  • Identify where judgement in cash flow forecasting models is legitimate and where it is not.
  • Assess the capital consumed by forecasting models under current and stressed conditions.
04

Forecasting models: capital, liquidity and balance sheet effect

2 sessions · 8 points

Session 1Stress scenarios for forecasting models that are plausible rather than convenient

  • Confirm client due diligence standards applied to cash flow forecasting models are current.
  • Agree who signs off forecasting models and record that they did.
  • Review whether cash flow forecasting models is aligned with the objectives of the business line.
  • Verify six months later that changes to forecasting models have held.

Session 2Building the method for forecasting models step by step

  • Benchmark the organisation's cash flow forecasting models against comparable operations.
  • Assign responsibility for keeping documentation of forecasting models current.
  • Confirm regulatory reporting on cash flow forecasting models is complete, timely and reconciled.
  • Build the competence framework that supports forecasting models.

Choose the package that suits you

Silver Package

At least 3 people

USD1,250
  • Workshop or Program Participation
  • Airport Transfers
  • Customized Badge
  • Expert Mentorship (Private Sessions)
  • Supervision & Secretarial Services
  • Accredited Certificate of Participation
  • Complete Training Kit
  • Coffee Break
  • Closing Ceremony

Gold Package

At least 3 people

USD1,850
  • 5-night stay in a 5-star hotel
  • Workshop or Program Participation
  • Airport Transfers
  • Customized Badge
  • Expert Mentorship (Private Sessions)
  • Supervision & Secretarial Services
  • Accredited Certificate of Participation
  • Complete Training Kit
  • Coffee Break
  • Closing Ceremony

Complete your registration

We will contact you within one business day to confirm.

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