Business and Budget Planning Training
26 – 28.02.2013
Specific topics which will be included in the three-day training sessions:
Day1
Session 1: Corporate Governance
Premium for Good Corporate Governance
Summary of Participants in Corporate Governance
Tools of Corporate Governance
Role of Board of Directors
Example of Corporate Governance Report
Six Step IFC Corporate Governance Program
Corporate Governance Plan
Day 1
Session 2: Risk Management
Principles of risk management
Risk management policy
Process of Risk Management
Risks to be managed
Capital Risk
Market Risk
Liquidity Risk
Product Risk
Operations Risk
Staff and Costs Risks
Risk Checklists
Minimizing Lending Risk
Stress Testing
Forward looking risk assessments
Templates for Risk Management
Case-studies, discussion groups and feedback sessions
Day 2
Session 1: Strategy and Planning
Definition of strategic goals
Systematic approach to analyzing various options
Policy dilemma as development banks
Return on capital and sustainability
Drawing up medium term plans
Enterprise Risk Management approach
Managing multiple and cross-enterprise risks
Issues related to capital limitations
Role of finance function
Need for forward planning
Need for budgeting control
Cash flow forecasting
Reporting systems
Plans not adjusted for changing circumstances
Case-studies, discussion groups and feedback sessions
Day 2
Session 2: Financial Analysis of all aspects of microfinance in Kosovo
Brief review of credit analysis techniques for development banks
Importance of the elements of a profit and loss account and balance sheet statement
Analyze a client’s cash flow statement
Recognizing financial and non-financial warning signs
Measures to minimize loan losses
Evaluation of credit risk involved in lending cases
Causes of business failure
Templates for analysis
Role of Key Performance Indicators
Business plan
Clear, written statement of key objectives
Objectives are communicated to management and staff
Effective implementation.
Day 3
Session 1: Business Success Criteria
Key Indicators of performance problems
Net cash flow from operations
Cash net income (after finance costs and dividends)
Cash flow after debt repayments
Does the proposed business activity generate strong cash flows quickly enough?
Does the business need increasing or reducing lending support?
Does the financial plan forecast need to be adjusted to improve cash flow?
How sensitive is the cash flow to a small downturn in sales / delay in customers paying / increase
in overheads?
If the cash flow forecast shows increased credit needs - how does this affect gearing and interest
cover?
Day 3
Session 2: Balance Sheet and Capital management
Lending risks
Limited capital
Forward planning
Compliance with reserve requirements
Composition of capital
Interest and dividend policies and practices
Adequacy of the Allowance for Loan Losses account
Asset Quality, the quality, type, liquidity and diversification of assets
Loan and investment concentrations;
Growth plans;
Ability to control and monitor risk, including credit and interest rate risk;
Liquidity and funds management;
Financial plan and performance
Session 2 (cont’d): Closing Session
CAMEL system for evaluating a bank’s operations:
Final case-studies, discussion groups and feedback sessions
Mock training course (the knowledge and capacity to provide training of the future local trainers
will be tested)
Member Feedback
Post Course Follow up.