DRIVING PROFESSIONAL STANDARDS

DRIVING PROFESSIONAL STANDARDS
2015 MII PROGRAMME DIRECTORY
FINANCE
Managers need to exercise control over the organisations
they manage - i.e. to make sure that the organisation is
keeping to plan and that necessary actions can be taken to
put it back on track when needed.
In the same way that a thermostat will regulate and control
the temperature of your central heating, system managers
need to have control tools to make sure that financial plans
and targets are being achieved.
Financial and Budgetary Control is the one of best techniques
of controlling management and finance, which every
department’s budget is made with estimated data and
assumptions.
Next, manager/HOD compares the estimated/budgeted
data with the original data. It will be the responsibility of
the HOD if the variance is unfavourable. In other words, to
make the budget and to control the business is the key tool
in budgetary control.
Title
4.01 Financial and Budgetary Control for Managers in the Insurance Industry
Venue
Who Should
Attend
Key Learning
Objectives
Learning
Outcomes
Methodology
Importance
of Budgetary
Control
Duration
Time
2 Days 9.00 am to 5.00 pm
The Malaysian Insurance Institute City Centre
Suite 6.0W, 6th Floor, Wisma Sime Darby, Jalan Raja Laut, 50350 Kuala Lumpur, Malaysia.
This is course is primarily suited for both finance and non-finance managers in the insurance industry with a
basic level of understanding in financial and budgetary control.
At the end of the course, participants will be able to:
• Understand the principal factors required to produce a successful and effective financial budgetary control
for business organization.
• Develop budgeting & financial skills are required for better decision making.
• Manage departmental budgets, monitor divisional costs and apportion department expenses on an
appropriate basis.
At the end of this two days program the participants will be able to:
• Manage budgets effectively in their department, division, cost or profit centre.
• Develop an understanding of the budgeting process.
• Work more productively with staff and resources from the finance or non-finance department.
• Prepare and monitor budget and assessing performance effectively.
• Appreciate the importance of reducing unnecessary departmental costs and working towards increased
corporate profitability using budgetary control process and variance analysis.
• Individual hands-on exercise
• Group hands-on exercise
• Case Studies
• To Use the Forecasting Techniques
• Fix the Responsibility of Departments
• Effective Utilization of Company’s resources
• Excel yourself in the organization
1. Overview of Financial Statements and
Organisation Types of Budgets:
• Statement of Profit or Loss
• Statement Financial Position
• Cash Flow Statement
• Master Budget, Sales/Revenue Budget,
Operating Expenditure Budget, Cash Budget,
Capital Expenditure Budget (CAPEX) etc.
2. Budgetary Control:
• Objectives
• Planning and control
• Behavioural aspects of budgeting
3. Budgeting systems:
• Traditional budgetary systems
• Zero based budgeting
• Budgeting issues
4. Budgeting Process (Preparation)
• Budgeting: a famous word but what does it
mean
• Overview of the budget process (procedures,
manuals, timelines)
• Case study: reviewing a simple budget
scenario
• Being clear about initial assumptions and
limiting factors
• Knowing where to find information that might
be needed
• Analyzing potential income and expenditure:
what events/occurrences do we need to
consider Internal, external, definite/uncertain
• Nature and behavior of costs
• Charging department expenditure to the
correct period - accruals, prepayments and
depreciation
• Break-even analysis
5. Variance Analysis (Facing the Actual)
• What are the variances and why are they
important
• The budget is the plan i.e. understanding the
need to proactively work towards budget and
adhere to budget.
• Comparing actuals to budgeted monthly
• Comparing actuals to budgeted year to date
• Understanding the significance of changes in
variances
• Causes of Budget Variances
• Calculating Variances
• Proper Variance Analysis
• Flexing the budget
6. The Sales /Revenue (Premium) Budget, Operating
Expenses Budget (eg Claims), Cash Budget &
Capital Expenditure Budget (CAPEX)
• Why they are needed Do high profits
necessarily mean everything is going well
• Hypothetical Insurance Company Case Study:
Preparing a Sales/Revenue (Premium), Expenses
(Claims), Cash and Capital Expenditure Budget
FEES
MEMBER
RM 900
GROUP MEMBER
RM 850
NON MEMBER
RM 1,100
GROUP NON MEMBER
RM 1,050
7. Presenting the Departmental Budget
• Giving clear information
• Presenting the main variables
• Getting agreement
• Putting it clearly onto paper
8. Reporting, Monitoring and Analysing the
Organisation’s Master Budget and Variance
Analysis for Management Decision Making
• Preparing, monitoring and analysing the
Master Budget vs Actual Performance
(Monthly, Quarterly, Half Yearly and Annually)
• Providing significant information to make
effective decisions e.g. Premium, Claims,
Operating Expenses etc.
• Importance of Budgetary Control.
• Case Study based on an insurance company
on the Budget
INTERNATIONAL
USD 300
GROUP INTERNATIONAL
USD 280
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