Treasury Management Simulation

In the simulation, participants will:

• Analyze incoming and outgoing cash flows to build accurate short and medium-term forecasts.

• Make daily decisions on investing surplus cash or drawing on credit lines to cover deficits.

• Select appropriate short-term investment instruments based on return, risk, and liquidity needs.

• Identify exposure to currency and interest rate fluctuations and execute hedges using forwards or options.

• Negotiate terms with banking partners for credit facilities and services.

• Present treasury strategy and performance updates to a simulated board or CFO.

• Respond to economic shocks, such as sudden market volatility or a supply chain disruption impacting payments.

• Reflect on the trade-off between liquidity safety and financial return.

• Understand the core functions and strategic importance of a corporate treasury department.

• Apply techniques for effective cash flow forecasting and liquidity management.

• Evaluate and select appropriate short-term investment and funding instruments.

• Identify key financial risks and propose basic hedging strategies.

• Appreciate the impact of treasury decisions on corporate financial health and stakeholder confidence.

• Communicate treasury performance and strategy clearly to senior management.

• Develop judgment under conditions of market uncertainty and operational pressure.

• Build confidence in managing corporate financial resources.

1. Receive a Company Brief Participants are introduced to a company's financials, operational cycle, and strategic objectives.

** 2. Analyze the Financial Position** They review cash positions, forecasted flows, market data, and risk exposures.

3. Make Treasury Decisions Participants decide on investments, funding, hedging, and working capital initiatives.

4. Collaborate and Negotiate Teams may assign specific roles (cash manager, risk analyst) and negotiate with simulated banks.

5. Communicate Strategy Participants prepare briefs or presentations to explain their decisions to the "CFO".

6. Review and Adapt The simulator provides feedback on liquidity coverage, investment returns, risk exposure, and bank ratings. New market events force strategy evolution in subsequent rounds.

• Who is the Treasury Management simulation designed for? It's ideal for students and professionals pursuing careers in corporate finance, treasury, accounting, financial analysis, or consulting, and for anyone who wants to understand how companies manage their financial lifeblood.

• Do I need prior experience in treasury to participate? No prior treasury experience is required. The simulation includes instructional content, videos, and guided cases that make the concepts accessible to all levels, from beginners to those looking to apply their knowledge.

• How long does a typical simulation session last? The core simulation is designed to run in 3 to 5 hours, making it perfect for a half-day workshop or multi-week course module. It can be adapted into shorter or more extended formats based on program needs.

• Is this an individual or team-based activity? It supports both formats. The team-based approach is highly recommended as it mirrors real-world treasury team dynamics, encouraging collaboration, role-playing, and strategic discussion.

• What specific financial instruments are covered? Participants will encounter and make decisions involving instruments like bank deposits, money market funds, commercial paper, short-term bonds, and basic FX forwards and options for hedging.

• Is the simulation data realistic? Yes. The financial scenarios, market movements, and corporate situations are based on real-world dynamics and data, providing an authentic learning environment.

• Can the simulation focus be customized for our course? Absolutely. Instructors can tailor the emphasis on specific areas such as cash management, FX risk, or short-term investing, and adjust company parameters or industry settings to match learning goals.

• How is participant performance measured and graded? The simulator automatically tracks and scores performance based on key metrics like liquidity ratio maintenance, return on invested cash, effectiveness of hedging decisions, cost of funding, and the quality of stakeholder communications. This data is provided to facilitators for easy grading.

• Financial performance (liquidity safety, investment returns, cost savings).

• Effectiveness of risk management and hedging decisions.

• Quality and clarity of strategic communication to stakeholders (CFO, board).

• Analytical rigor in cash forecasting and decision rationale.

• Collaboration and adaptability within the treasury team.