CPA FINANCIAL RISK MANAGEMENT

ACC5FRM

Not currently offered

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.

School: La Trobe Business School (Pre 2022)

Credit points: 15

Subject Co-ordinator: Axel Schulz

Available to Study Abroad/Exchange Students: Yes

Subject year level: Year Level 5 - Masters

Available as Elective: No

Learning Activities: Seminars and online activities

Capstone subject: No

Subject particulars

Subject rules

Prerequisites: Must have completed 180 credit points of subjects as per the course structure in either LMCPA or LMFAN and seek subject co-ordinator's approval

Co-requisites: ACC5SMA

Incompatible subjects: N/A

Equivalent subjects: N/A

Quota Management Strategy: N/A

Quota-conditions or rules: N/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.

Minimum credit point requirement: N/A

Assumed knowledge: N/A

Learning resources

Blended material

Resource Type: Other resource

Resource Requirement: Recommended

Author: La Trobe University

Year: N/A

Edition/Volume: N/A

Publisher: La Trobe University

ISBN: N/A

Chapter/article title: N/A

Chapter/issue: N/A

URL: N/A

Other description: N/A

Source location: N/A

Study Guide - CPA Australia

Resource Type: Web resource

Resource Requirement: Prescribed

Author: CPA Australia

Year: N/A

Edition/Volume: N/A

Publisher: CPA Australia

ISBN: N/A

Chapter/article title: N/A

Chapter/issue: N/A

URL: cpaaustralia.com.au/myonlinelearning

Other description: N/A

Source location: N/A

Career Ready

Career-focused: No

Work-based learning: No

Self sourced or Uni sourced: N/A

Entire subject or partial subject: N/A

Total hours/days required: N/A

Location of WBL activity (region): N/A

WBL addtional requirements: N/A

Graduate capabilities & intended learning outcomes

Graduate Capabilities

DISCIPLINE KNOWLEDGE AND SKILLS
INQUIRY AND ANALYSIS - Creativity and Innovation
INQUIRY AND ANALYSIS - Critical Thinking and Problem Solving
INQUIRY AND ANALYSIS - Research and Evidence-Based Inquiry
PERSONAL AND PROFESSIONAL - Adaptability and Self-Management
PERSONAL AND PROFESSIONAL - Ethical and Social Responsibility

Intended Learning Outcomes

01. Recognise risk and a risk management framework
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
03. Differentiate the funding, liquidity, interest rate, foreign exchange, commodity price, credit and operational risk faced by organisations
04. Advise an organisation on the procurement and management of funding and the allocation to completing long-term investment
05. Appraise the nature and characteristics of derivatives
06. Advise an organisation on the types of financial instruments that could be used to best manage an organisation's financial risk
07. Demonstrate the practical elements of accounting for derivatives for both embedded derivatives and derivatives used for hedging purposes
08. Summarise the responsibilities for financial risk and regulatory requirements, and the control framework for managing both financial and operational risks.
Subject not currently offered - Subject options not available.