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FINANCIAL APPLICATIONS
Understanding a CFO's Challenges
Targeted Skill Level: Basic
Duration: 2 - 4 hours
COURSE DESCRIPTION
Managing risk is a key concern for Chief Financial Officers (CFOs). To discuss risk management with CFOs effectively requires understanding their role and the challenges they face. In preparation, you must know how the company measures performance and how well it is doing financially. Understanding a CFO's Challenges helps you make your risk management calls more productive. With this knowledge, your discussions with the CFO can focus on digging deeper into his or her concerns and identifying specific areas where you can assist.
Understanding a CFO's Challenges was developed in conjunction with a premier insurance brokerage, consulting service and consumer insurance underwriting organization. This course benefits producers, underwriters, anyone in credit, or anyone who approaches CFOs in the selling process.
GOALS
After completing this course you will be able to:
- Identify a company's key value drivers
- Recognize key performance metrics
- Perform and evaluate a high-level analysis of financial statements and related reference resources
- Understand the 7 forms of risk that a CFO must consider
- Understand financial price risks at a high level
- Engage in discussion regarding consequential, non-traditional risk exposures, and the direction of possible solutions for managing those exposures
CASE SIMULATION
First, you'll meet Tom Dade, the CFO of Tuscany Pasta, a fictional client. You'll learn about his role and the roles and perspectives of his
colleagues, the types of risks his company faces, and how to analyze the company's financial statements.
Then, you're introduced to five other fictional companies: an airline, a retailer, an assisted living corporation and two different manufacturing
companies. For each case, you'll identify one or more key performance metrics and analyze financial statements and qualitative research. You'll also
learn how to convert the results of that research into discussion points and follow-up questions for the CFO.
INSTRUCTIONAL PATH CONTENT
- Strategic issues important to a CFO
- Maximize shareholder value
- Financial reporting for the firm
- Maintaining investor relations
- Protecting the assets of the organization
- Capital structure (financing) decisions for the firm
- Financial planning and analysis for the firm
- Establishment of internal controls for the firm
- Value and risk
- Shareholder value - 4 drivers of value - What are they? Why are they important?
- Risk management
- Introduction to risks and risk management
- Identifying 7 types of risks
- Financial analysis
- Understanding your client's financial statements
- Accounting: What you see is not always what you get.
- The basic rules and assumptions
- The auditor's opinion
- Income statement
- Balance sheet
- Statement of cash flows
- 10-Ks, 10-Qs, SEC filings
- Footnotes to the annual report
- Importance of reviewing footnotes
- What to look For
- Understanding your client's financial situation: Ratio analysis
- Purpose of ratio analysis
- Liquidity ratios
- Profitability ratios
- Efficiency ratios
- Industry impacts on ratios
- Research tools
- Analyst's reports
- Credit ratings
- Solutions
- The convergence of finance and insurance
- Risk management consulting
- Traditional insurance
- The use of the capital markets
- Self-insurance
- No insurance
- Standard insurance and finite risk policies for traditional insurable risks
- Tools for financial price risk management - derivatives
- The combination of the basic tools - integrated insurance
JUST-IN-TIME CONTENT
- Over 45 audio clips (and text) from experts from banks, companies and financial institutions describing real business situations relating to the teaching points.
- Comprehensive financial glossary
Presented in the Interactive Directed Learning Model™
Call us at 610.388.0969 or use our convenient contact form.
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