Financial and Risk Assessment

Overview

This course provides an appreciation of a wide range of financial and risk issues as they impact on the business world. Initially concentrating on the basic application of financial statements, financial tools and techniques, the course progresses to take a more strategic perspective. It encourages delegates to perceive and evaluate the financial and risk implications of strategic options and decisions.

Content and Modules

This course covers the following subject areas:

The role of the finance function within an organisation

• The financial accountant, management accountant, treasurer and financial strategy
• The budgeting process

Financial statements

• The income statement, balance sheet and cash flow statement
• Management uses of financial statements

Interpretation of financial information

• Ratio and trend analysis
• Common size statements
• Prediction of corporate failure

Costing

• Cost classification
• Marginal costing and break-even analysis

Introduction to financial strategy

• Financing, investment and distribution decisions
• Risk/return, cash/profit, outline of portfolio theory

Capital structure

• Sources of long finance
• Cost of capital
• Gearing

Management of working capital

• Cash cycle and relevant ratios
• Strategies for the management of working capital

Acquisitions and mergers

• Acquisitions v mergers
• Reasons for, defences, methods of satisfying purchase consideration
• Valuation of shares
• Measures of success

Investment appraisal

• Relevant costs and receipts
• Techniques used in the appraisal process including strengths and weaknesses
• Measures to allow for risk

Risk management

• Techniques of risk identification and evaluation
• Alternative means of dealing with identified and evaluated risk
• Reasoned recommendations for choice amongst alternative means of dealing with risk

Further Information