CPA FINANCIAL RISK MANAGEMENT

ACC5FRM

2018

Credit points: 15

Subject outline

The purpose of this subject is to equip you with the necessary skills to assess financial risks such as funding and liquidity risk, market risk from interest rate, exchange rate or commodity price movements, credit risk, and operational risk, and manage them strategically with the use of financial instruments. It extends the governance framework covered in the CPA Ethics and Governance subject, further discusses the process of investment evaluation that was covered in the CPA Strategic Management Accounting subject, and examines some of the practical elements and complexities of hedge accounting in relation to the international financial reporting standards that were covered in the CPA Financial Reporting subject.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorKok-Boon Oh

Available to Study Abroad StudentsYes

Subject year levelYear Level 5 - Masters

Exchange StudentsYes

Subject particulars

Subject rules

Prerequisites WAM of 60% in the 8 of the 9 core MPA subjects AND ACC5ETG AND ACC5FRP

Co-requisites ACC5SMA

Incompatible subjectsN/A

Equivalent subjectsN/A

Special conditions All students enrolling in the CPA Professional subjects will be required to enrol concurrently with CPA in order to sit the CPA final exams, at their cost. The final exam for the CPA professional subjects is the official CPA professional accreditation exam set and graded by CPA Australia. Students failing to pass this exam on the first attempt will be offered a second attempt (at their cost) in lieu of a supplementary exam. Students enrolled in the course who fail to achieve the 60% WAM for 8 of the 10 core MPA subjects, will be able to transfer into the generic MPA degree. Students failing to satisfactorily complete all six CPA subjects will be able to transfer to complete the generic MPA, where completed CPA subjects will count towards the elective subjects of that degree.

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
Discipline SpecificStudy GuidePrescribedCPA AustraliaCPA Australia
ReadingsBlended materialRecommendedLa Trobe UniversityLa Trobe University

Graduate capabilities & intended learning outcomes

01. Recognise risk and a risk management framework

Activities:
Lecture/workshop and online activities
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

02. Recognise the types of financial risk faced by an organisation and apply a practical approach to assessing, monitoring and managing an organisation's financial risk

Activities:
Lecture/workshop and online activities
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Autonomy and independence,Ethical behaviour)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

03. Differentiate the funding, liquidity, interest rate, foreign exchange, commodity price, credit and operational risk faced by organisations

Activities:
Lecture/workshops and online activities
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

04. Advise an organisation on the procurement and management of funding and the allocation to completing long-term investment

Activities:
Lecture/workshop and online activities
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Autonomy and independence,Ethical behaviour)
Personal and Professional Skills (Autonomy and independence,Ethical behaviour)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

05. Appraise the nature and characteristics of derivatives

Activities:
Lecture/workshops and online activities
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Autonomy and independence,Ethical behaviour)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

06. Advise an organisation on the types of financial instruments that could be used to best manage an organisation's financial risk

Activities:
Lecture/workshop and online activities
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Autonomy and independence,Ethical behaviour)
Personal and Professional Skills (Autonomy and independence,Ethical behaviour)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

07. Demonstrate the practical elements of accounting for derivatives for both embedded derivatives and derivatives used for hedging purposes

Activities:
Lecture/workshop and online activities
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

08. Summarise the responsibilities for financial risk and regulatory requirements, and the control framework for managing both financial and operational risks.

Activities:
Lecture/workshop and online activities
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

Subject options

Select to view your study options…

Start date between: and    Key dates

Melbourne, 2018, Week 29-43, Night

Overview

Online enrolmentNo

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorKok-Boon Oh

Class requirements

Lecture/Workshop Week: 29 - 41
One 3.0 hours lecture/workshop per week on weekdays at night from week 29 to week 41 and delivered via face-to-face.
"One 3-hour face-to-face lecture/workshop per week for 12 weeks plus online material from CPA Australia. Classes at 5pm (Monday-Thursday only)."

Assessments

Assessment elementComments% ILO*
CPA Final Exam (3 hours 15 minutes)The CPA Program Exams are of three hours and 15 minutes duration. CPA Program exams are open book. As this exam forms part of a professional qualification, the required level of performance is high. Candidates are required to achieve a passing scale score of 540 in all CPA Program exams. Further information about scaled scores and exam results is available at: cpaaustralia.com.au/cpaprogram50 01, 02, 03, 04, 05, 06, 07, 08
Individual Case Study Assignment (One, 1,000 words)Students will conduct in-depth analysis of case studies and prepare a report which is to be submitted via LMS. This will assist students to prepare for the CPA Final Exam where case study analysis is an important element of the subject. it is an individual assessment.20 01, 02, 03
Online Quizzes (Best 10 of 12, each quiz has10 questions)The results will be published on LMS with feedback30 01, 02, 03

Melbourne, 2018, Week 08-23, Night

Overview

Online enrolmentNo

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorKok-Boon Oh

Class requirements

Lecture/Workshop Week: 08 - 20
One 3.0 hours lecture/workshop per week on weekdays at night from week 08 to week 20 and delivered via face-to-face.
"One 3-hour face-to-face lecture/workshop per week for 12 weeks plus online material from CPA Australia. Classes at 5pm (Monday-Thursday only)."

Assessments

Assessment elementComments% ILO*
CPA Final Exam (3 hours 15 minutes)The CPA Program Exams are of three hours and 15 minutes duration. CPA Program exams are open book. As this exam forms part of a professional qualification, the required level of performance is high. Candidates are required to achieve a passing scale score of 540 in all CPA Program exams. Further information about scaled scores and exam results is available at: cpaaustralia.com.au/cpaprogram50 01, 02, 03, 04, 05, 06, 07, 08
Individual Case Study Assignment (One, 1,000 words)Students will conduct in-depth analysis of case studies and prepare a report which is to be submitted via LMS. This will assist students to prepare for the CPA Final Exam where case study analysis is an important element of the subject. it is an individual assessment.20 01, 02, 03
Online Quizzes (Best 10 of 12, each quiz has10 questions)The results will be published on LMS with feedback30 01, 02, 03