acc5frm cpa financial risk management
CPA FINANCIAL RISK MANAGEMENT
ACC5FRM
2019
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 Must have completed 180 credit points of subjetcs as per the course structure in either LMCPA or LMFAN and seek subject co-ordinator's approval.
Co-requisites ACC5SMA
Incompatible subjectsN/A
Equivalent subjectsN/A
Special conditions All students enrolling in the CPA Professional subjects must first enrol with CPA Australia and provide evidence of associate membership with CPA Australia. 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 in lieu for a supplementary exam. All CPA Australia exams are at the student's own cost, exam payments must be made directly to CPA Australia. Students choosing to exit after satisfactorily completing any four LBS subjects (60cps) may exit with a Graduate Certificate in Business. Students choosing to exit after satisfactorily completing any eight LBS subjects (120cps) may exit with a Graduate Diploma in Business. 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.
Learning resources
Readings
| Resource Type | Title | Resource Requirement | Author and Year | Publisher |
|---|---|---|---|---|
| Discipline Specific | Study Guide | Prescribed | CPA Australia | CPA Australia |
| Readings | Blended material | Recommended | La Trobe University | La Trobe University |
Graduate capabilities & intended learning outcomes
01. Recognise risk and a risk management framework
- Activities:
- Seminars 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:
- Seminars 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:
- Seminars 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:
- Seminars 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:
- Seminars 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:
- Seminars 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:
- Seminars 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:
- Seminars 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…
Melbourne, 2019, Week 29-43, Blended
Overview
Online enrolmentNo
Maximum enrolment sizeN/A
Enrolment information
Subject Instance Co-ordinatorKok-Boon Oh
Class requirements
SeminarWeek: 29 - 41
Seven 3.0 hours seminar per study period on weekdays at night from week 29 to week 41 and delivered via face-to-face.
"Taught as seven 3-hour face-to-face seminars, plus online material from CPA Australia. Seminar timing will be aligned to match CPA Australia exam dates."
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| CPA Final Exam (3 hours 15 minutes) (3250 word equivalent) | 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. CPA Program exams are conducted by CPA Australia. | 70 | 01, 02, 03, 04, 05, 06, 07, 08 |
| Individual Case Study Assignment (1000 words) | Students will prepare an individual case study analysis. This will assist students to prepare for the CPA Exam where case study analysis is an important element. | 10 | 01, 02, 03 |
| Group Assignment (500 words per student) | Students will work in groups to prepare an in-depth case study analysis. This will assist students to prepare for the CPA Exam where case study analysis is an important element. | 20 | 01, 02, 03 |
Melbourne, 2019, Week 08-23, Blended
Overview
Online enrolmentNo
Maximum enrolment sizeN/A
Enrolment information
Subject Instance Co-ordinatorKok-Boon Oh
Class requirements
SeminarWeek: 08 - 20
Seven 3.0 hours seminar per study period on weekdays at night from week 08 to week 20 and delivered via face-to-face.
"Taught as seven 3-hour face-to-face seminars, plus online material from CPA Australia. Seminar timing will be aligned to match CPA Australia exam dates."
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| CPA Final Exam (3 hours 15 minutes) (3250 word equivalent) | 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. CPA Program exams are conducted by CPA Australia. | 70 | 01, 02, 03, 04, 05, 06, 07, 08 |
| Individual Case Study Assignment (1000 words) | Students will prepare an individual case study analysis. This will assist students to prepare for the CPA Exam where case study analysis is an important element. | 10 | 01, 02, 03 |
| Group Assignment (500 words per student) | Students will work in groups to prepare an in-depth case study analysis. This will assist students to prepare for the CPA Exam where case study analysis is an important element. | 20 | 01, 02, 03 |