Strategic Capital Investment, Performance Measurement, and Risk Management

Course Introduction

Are you familiar with the various strategic approaches to capital investment decision-making, activity-based management (ABM), and performance measurement?

This Strategic Capital Investment, Performance Measurement, and Risk Management training course provides the necessary skills for attendees to develop such strategies, which relate to where you want to be headed as an organisation and to provide the necessary direction to get there. 

Risk impacts on all strategic decisions and affects the profit and value creation of an organisation. Financial risk results from the various types of financing used to fund the organisation and the impact of movements in foreign currency exchange rates, interest rates, and overseas trade and investment.

This Oxford Management Centre training course considers the measurement and analysis of risk and the various management methods and financial risk. 

Objectives

By the end of this Strategic Capital Investment, Performance Measurement, and Risk Management training course, you will be able to:

• Apply the vital technique of discounted cash flow (DCF) for capital investment appraisal and budgeting
• Use sensitivity analysis and simulation modelling to identify capital project investment risk
• Evaluate the use of activity-based costing (ABC) and activity based management (ABM) to improve performance measurement and management reporting
• Link and measure business performance with strategic objectives using the balanced scorecard 
• Manage interest rate and foreign currency exchange rate exposure risk

Training Methodology

This training course will utilise a variety of proven highly interactive adult learning techniques to ensure maximum understanding, comprehension and retention of the information presented. This includes syndicate and individual exercises, relevant DVD and case studies and role-play exercises. A comprehensive e-version of the training course manual including copies of all slides, handouts and checklists will be provided.

Who Should Attend?

This Strategic Capital Investment, Performance Measurement, and Risk Management training course is suitable for a wide range of professionals but will greatly benefit:

• Risk managers and treasury professionals
• Accountants, controllers, finance directors, and financial analysts
• Project managers and managers working in manufacturing, engineering, procurement, logistics, and human resources

Course Outline

Among a wide range of valuable topics, the following will be prioritised:

• Capital investment decision-making 
• Capital project investment appraisal using accounting rate of return (ARR) and payback, and the DCF methods of net present value (NPV), internal rate of return (IRR), modified internal rate of return (MIRR), and equivalent annual cost (EAC)
• Capital rationing and budgeting using the profitability index (PI)
• Sensitivity analysis, scenario analysis, and simulation to evaluate capital project investment risk
• Product cost cross-subsidization
• Activity-based costing (ABC) and activity-based management (ABM)
• Refining the costing systems and measurement systems to support financial decision-making
• Linking strategic objectives to key performance indicators (KPIs) using the balanced scorecard
• Uncertainty and risk – business risk and financial risk
• Mitigating and minimising financial risk: insurance and hedging of exposures to interest rate and foreign currency exchange rate fluctuations