Cash Management Simulation

In the Cash Management Simulation, participants step into the role of corporate treasury managers, navigating the complexities of liquidity, cash flow forecasting, working capital optimization, and risk mitigation.

Cash Management Simulation Overview

The Cash Management Simulation is an interactive training tool designed by corporate treasury and finance professionals. Replicate the end-to-end cash management process within a corporate treasury department, where participants must optimize liquidity, manage working capital, forecast cash flows, and respond to unexpected financial shocks.

Participants will face evolving scenarios, such as fluctuating interest rates, supplier payment delays, sudden market downturns, or urgent investment opportunities, that test their ability to maintain solvency while maximizing returns on idle cash. The simulation emphasizes strategic decision-making, analytical thinking, and adaptability in a high-pressure environment with time constraints.

Ideal for university finance programs, MBA courses, corporate training, and treasury certification programs, this simulation bridges theory and practice, giving learners a visceral understanding of how cash management impacts overall corporate health and strategic flexibility.

Cash Management Simulation Concepts

Participants work through realistic scenarios, which can be customized to emphasize or exclude specific topics depending on the learning goals. This modular structure allows the simulation to be tailored to any type of session. Key concepts include:

Cash flow forecasting and liquidity planning
Working capital management
Short-term investment and financing strategies
Cash pooling and netting techniques
Bank relationship management and fee negotiation
FX and interest rate risk exposure management
Compliance and internal controls in treasury operations
Technology and automation in cash management
Stress testing and contingency funding planning
ESG considerations in treasury and liquidity decisions

Gameflow

What Participants Do

In the simulation, participants will:

Analyze company financials, cash flow statements, and market data
Forecast short- and medium-term cash positions
Optimize working capital by managing payables, receivables, and inventory
Execute short-term investments or borrowings to balance liquidity
Respond to unexpected events like economic shocks or operational disruptions
Negotiate with banks for better terms and lower fees
Present cash management strategies and performance updates to senior management
Reflect on decision outcomes and adjust strategies across simulation rounds

Learning Objectives

By the end of the simulation, participants will be able to:

Understand the role and functions of a corporate treasury department
Apply cash flow forecasting techniques to predict liquidity needs
Optimize working capital to free up cash and reduce financing costs
Evaluate short-term investment and borrowing instruments
Mitigate financial risks related to currency, interest rates, and counterparties
Leverage technology and banking solutions for efficient cash management
Communicate treasury performance and strategies effectively to stakeholders
Develop judgment and adaptability under financial uncertainty
Recognize the impact of cash management on corporate strategy and valuation
Build confidence in making data-driven treasury decisions

How the Cash Management Simulation Works

This simulation can be run individually or in teams in academic or corporate contexts. Each cycle represents a stage of getting through a pressing financial situation.

1. Receive a Scenario Brief Participants review the company’s financial position, market conditions, and treasury objectives.

** 2. Analyze Data** Examine cash flow statements, bank balances, market rates, and upcoming obligations.

3. Make Decisions Allocate cash, adjust working capital policies, invest or borrow, and hedge exposures.

4. Collaborate and Negotiate Teams may role-play as treasury, AP/AR, or banking partners to align priorities.

5. Submit Plans Participants lock in their decisions within time limits.

6. Review Outcomes The simulator generates results showing liquidity position, costs/returns, and risk metrics.

7. Adapt Strategies In subsequent rounds, participants refine approaches based on feedback and new challenges.

8. Present and Debrief Teams explain their strategies and lessons learned in a final review session.

Frequently Asked Questions

Who is the Cash Management Simulation designed for? This simulation is ideal for finance students (BSc, MSc, MBA), corporate trainees, early-career treasury professionals, and anyone seeking hands-on experience in liquidity management and corporate finance.
Do I need prior treasury or finance experience? No prior experience is required. The simulation includes guided tutorials, case examples, and adjustable difficulty levels to accommodate beginners and advanced learners.
How long does the simulation take to complete? Typically 2–4 hours, but it can be modularized into shorter sessions or expanded for deeper exploration across multiple weeks.
Is this simulation individual or team-based? It supports both formats. Teams can mimic a corporate treasury department, while individual play focuses on personal decision-making and analysis.
What types of cash management tools are covered? Participants work with cash flow forecasts, short-term investments, bank facilities, cash pooling, FX hedging, and working capital optimization techniques.
Can the simulation be customized for specific industries or learning goals? Yes. Instructors can adjust parameters like industry sector, company size, market volatility, and focus areas.
How is performance measured in the simulation? Performance is evaluated based on liquidity metrics, investment returns, borrowing costs, risk exposure, and strategic communication.
What career roles does this simulation prepare participants for? It prepares learners for roles in corporate treasury, cash management, financial planning & analysis (FP&A), risk management, consulting, and commercial banking.

Assessment

Assessment of participant performance can be tailored according to the host institution’s objectives (business school, corporate training, assessment centre). Typical assessment criteria include:

Liquidity efficiency, minimizing financing costs while maintaining adequate cash buffers
Working capital optimization, improving DSO, DPO, and inventory turnover
Risk management, effectively hedging FX and interest rate exposures
Strategic adaptability, responding to market shocks and unforeseen events
Communication, clarity and persuasiveness in presenting treasury strategies to stakeholders
Collaboration, teamwork and negotiation in multi-role settings