Premium Essay

Cpa Frm

In: Other Topics

Submitted By AAPR
Words 7954
Pages 32
Financial Risk Management – Frequently Asked Questions
Module 1 – Introduction to Financial Risk Management
1. What are the major categories of risk? Please provide examples. (Topic heading: Main categories of risk controls)
Seven categories of risk are outlined. These are summarised in the table below:

Type of risk
Liquidity

Definition
The risk of not being able to pay back what you owe due to the inability to convert assets into cash quickly, without materially moving the price.

Example
Holding long-term property investments that cannot be converted into cash quickly to pay obligations as they fall due.

Funding

The risk of funding support not being met by investors or bankers.

An existing financier (e.g. bank) withdraws its funding commitment as a result of poor performance by the entity.

Interest rate

The risk of a change in interest rates impacting borrowing costs, interest income and/or asset/debt values.

Central bank increases the cash rate and your company has a floating rate loan pegged to the cash rate.

Foreign exchange

The risk of the foreign exchange rate fluctuating, impacting the currency conversion of revenues, expenses, assets and/or liabilities. Includes transaction, translation, competitive/economic and accounting exposures.

If the AUD falls, an Australian importer of clothing from the US pays more AUD for the same amount of clothing.

Commodity price

The risk of the change in price of a commodity, whether used as an input or generated as an output.

The price of iron ore falls as a result of a lack of confidence in general economic conditions, reducing revenues for an iron ore producer.

Credit

The risk of another party to a contract not meeting its obligations (i.e. defaulting).

A debtors declares bankruptcy, resulting in an uncollected receivable.

Operational

The risk of human or...

Similar Documents

Free Essay

Aicpa Gaodun

...高顿财经联合政府部门、权威财经组织、顶级商学院,引入包括ACCA、USCPA、 CICPA、CMA、CFA、CIMA、FRM、会计职称等在内的全球含金量较高的财经职业资格 认证,为学员提供认证考试培训、行业前沿资讯、实务技能训练、职业发展活动等 教育服务。      高顿财经将“通过率”视为自己的生命线!为不断提升学员的通过水平,高顿 财经率先创建财经职业认证研究院,摸索中国学员教学规律,关注认证机构命题趋 势,不断开发适合的学习工具;并组建具有深厚学术功底和丰富工作经验的全职讲 师团队,采用先进的教学方法,以确保教学品质;同时培养规模庞大的学员服务团 队,帮助学员保持其最佳的学习状态。“帮助学员快速获取职业认证”是高顿财经 的价值所在。 成就年轻梦想 全球财经证书培训领导品牌 高顿财经秉承“终身财经教育”的理念,利用集团相关产品线,为学员构建了 一个终身财经教育平台。高顿财经充分发挥财经教育核心资源优势,为学员提供可 受益一生的后续教育,主题涵盖财经专业、职业发展以及个人修养等广泛内容,支 持学员职业生涯的持续发展,打开职业上升通道,建立顶尖行业人脉圈。    历经多年耕耘,高顿财经现已成中国最大的财经证书培训机构之一,并连 续多年被各大权威媒体评选为最具品牌影响力财经培训机构。目前高顿财经的学员 每年达到20,000名,累计培养了15,000名持证者。来自高顿的学员具有更专业的财 经知识,拥有更好的职业发展,赢得更受尊重的社会地位。高顿学员攀上人生一个 个重要高峰的同时,高顿财经也赢得了日益增长的社会关注,获得了来自不同行业、 不同阶段层次的财经人士广泛认可。 成就年轻梦想 高顿财经优势——掌握财经教育核心资源 权威机构——高顿财经提供多项国际财经职业资格认证培训,是国内规模最大的财经 证书培训机构之一。 高通过率——考试通过率高于行业平均水平20%以上。 卓越研发——近千位财经精英组成教学研发团队,洞悉考试规律、研发教学工具及提 供海量题库。 强大师资——特别聘用从业经验丰富的财经持证人担任讲师,确保理论与实务操作紧 密结合。 学员关怀——上百名学员服务团队贴身伴学,为学员量身定制学习计划。 终身教育——每年数百场后续教育活动,提供终身受益平台。 成就年轻梦想 高顿财经服务——帮助学员快速获取职业认证 中国注册会计师 Certified Public Accountant 英国特许公认会计师 Chartered Certified Accountant 美国特许金融分析师 Chartered Financial Analyst 英国皇家特许管理会计师 Chartered Management Accountant 美国注册管理会计师 Certified Management Accountant 美国注册会计师 Certified Public Accountant 美国金融风险管理师 Financial Risk Manager 高顿财经联合政府部门、国际权威财经组织、 全球顶尖商学院、以及知名跨国企业,推广包括ACCA、 CIMA、AICPA、CFA、CMA、FRM、CPA、会计职称在内的,...

Words: 912 - Pages: 4

Free Essay

Miss

...YingJieSheng.COM ............................................................................................................................................5 1.1 .......................................................................................................................................................5 1.2 .......................................................................................................................................................5 1.3 ...........................................................................................................................................................6 1.4 ...............................................................................................................................................6 kpmg ....................................................................................................................................7 2.1 2013kpmg ..................................................................................................................7 2.2 verbal ...............................................................................................8 2.3 Oct.13.2013. KPMG .............................................................................................................................8 2.4 ........................................................................................................................................9 2.5 10.12KPMG......

Words: 10502 - Pages: 43

Premium Essay

Abc Learning

...ABC learning a CSR Dilemma Synopsis ABC Learning was an Australian provider of early child hood education services, founded in Queensland in 1988. Through its 18 child care centres it was the largest almost monopolistic single operator of early childhood education services in Australia by 1997. Led by founder and CEO Eddy Groves, ABC Learning continued to grow, by opening new centres and the acquisitions of competitors both locally and internationally. The company experienced a significant drop in their share price in 2008. Trading in the company shares was suspended in early 2008, closely followed by the company going into receivership in November of 2008. This essay will examine ABC Learning and assess the impact of the company’s corporate social responsibility policy or lack thereof and how this contributed to their spectacular collapse. Particular attention will be concentrating on the ethical internal running of the company’s corporate structure and executive leadership, focussing in particular on Eddy Groves’ poor decision making, creative accounting and resulting organisational culture. Dahlberg & Moss (2005) claim that ethics is a practical matter which involves thinking about every day actions and decisions either individually or collectively and then responding with respect for all concerned. When values underpin our responses and choices, ethics is at work. In some instances our decision making can be hindered because......

Words: 3409 - Pages: 14

Premium Essay

★Global Citizen ★

...JaNuaRy–FeBRuaRy 2014 23 consumer Behavior What Marketers Don’t Get About Online Reviews Itamar Simonson and emanuel rosen 78 competition The Big Lie of Strategic Planning roger l. Martin 103 risk Management The New Rules of Globalization Ian Bremmer : -( : -( ; -) : A greAt plAce to work What ideo, BlackRock, and Netflix know about building high-performance cultures Page 53 ©2013 Cartier calibre de cartier CHRONOGRAPH 1904-CH MC THE 1904-CH MC, THE NEW AUTOMATIC WINDING CHRONOGRAPH MOVEMENT, WAS CONCEIVED, DEVELOPED AND ASSEMBLED BY THE CARTIER MANUFACTURE IN THE GREATEST WATCHMAKING TRADITION. THIS MOVEMENT IS EQUIPPED WITH INGENIOUS SYSTEMS FOR UTMOST PRECISION: A COLUMN WHEEL TO COORDINATE ALL THE CHRONOGRAPH FUNCTIONS, A VERTICAL CLUTCH DESIGNED TO IMPROVE THE ACCURACY OF STARTING AND STOPPING THE TIMING FUNCTION, A LINEAR RESET FUNCTION, AND A DOUBLE BARREL TO ENSURE UNRIVALED TIMEKEEPING. 18K PINK GOLD 42 MM CASE, MECHANICAL MANUFACTURE CHRONOGRAPH MOVEMENT, SELF-WINDING, CALIBRE 1904-CH MC (35 JEWELS, 28,800 VIBRATIONS PER HOUR, APPROXIMATELY 48 HOUR POWER RESERVE), CALENDAR APERTURE AT 6 O’CLOCK, 18K PINK GOLD OCTAGONAL CROWN, SILVER OPALINE SNAILED DIAL, GOLD FINISHED CHAMFERS. ALLIGATOR STRAP. EXPLORE AND SHOP WWW.CARTIER.US - 1-800-CARTIER hbr.org January–February 2014 Contents 53 SpoTlIghT on TalENT aND PErformaNCE 54 IDEo’s Culture of helping Research at one office of the design......

Words: 59824 - Pages: 240

Premium Essay

The Legal Regulation of the

...THE LEGAL REGULATION OF THE EXTERNAL COMPANY AUDITOR IN POST-ENRON SOUTH AFRICA Hannine Drake THESIS PRESENTED IN FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF LAWS AT THE UNIVERSITY OF STELLENBOSCH Supervisor: Prof A.H. van Wyk March 2009 ii DECLARATION By submitting this thesis electronically, I declare that the entirety of the work contained therein is my own, original work, that I am the owner of the copyright thereof (unless to the extent explicitly otherwise stated) and that I have not previously in its entirety or in part submitted it for obtaining any qualification. Date: 25 February 2009 Copyright © 2009 Stellenbosch University All rights reserved iii ACKNOWLEDGEMENTS In acknowledgement to all who have contributed to this work in some form: writing this thesis would have otherwise been like swimming through mud. To my supervisor, Professor Andreas van Wyk, thank you for your leadership, patience, and academic skill in guiding me through the research process. To Adéle Mulder and Charl Marais, thank you for your continuous insight and perspectives, both academic and otherwise. And finally to Hilda and Gerrie Steyn, who have been absolutely crucial throughout all my years of study, thank you for your indispensable support, in all its forms. iv SUMMARY The worldwide increase of corporate failures on the scale of Enron and WorldCom has sparked a renewed international trend of corporate governance......

Words: 50477 - Pages: 202

Free Essay

Banking

...June 02, 2014 MY Banking Sector SECTOR RESEARCH | Malaysia NEUTRAL Analyst Desmond Ch’ng, ACA (603) 2297 8680 (unchanged) Loan growth slows to 10% YoY    Industry loan growth moderated to 10.0% YoY in Apr 2014 from 10.2% YoY in Mar 2014. All HH loan segments continued to register softer growth except residential property. Still NEUTRAL on the sector; BUYs are AMMB, HL Bank and HLFG. MPHB Capital is also a BUY with a TP of MYR2.42. desmond.chng@maybank-ib.com What’s New Industry loan growth was 10.0% YoY in Apr 2014, with household (HH) loans expanding at a more moderate 11.6% YoY in Apr 2014 vs 11.7% YoY in Mar 2014, while non-HH loan growth was a slower 7.9% YoY vs 8.3% YoY in Mar 2014. Positively, cumulative PDS issuances to date are 4.5% higher versus the same period last year. Also positive is the fact that industry fundamentals remain solid, with an all-time low gross NPL ratio of 1.8%, strong loan loss coverage at almost 105%, stable interest spreads and a stable loan/deposit ratio at 85%. What’s Our View Banks have become more selective in their approval of residential property loans but demand is likely to hold up due to: (i) expectations of higher property prices post GST; and (ii) prevailing negative real rates that will encourage investors to seek an inflation hedge. Whether this will prompt further property measures remains to be seen. Overall loan approval rates continue to soften while application trends have yet to see a meaningful...

Words: 7677 - Pages: 31

Free Essay

Core Concepts of Ais

...., CPA Professor Department of Accounting Virginia Commonwealth University JOHN WILEY & SONS, INC. VICE PRESIDENT & PUBLISHER SENIOR ACQUISITIONS EDITOR PROJECT EDITOR ASSOCIATE EDITOR SENIOR EDITORIAL ASSISTANT PRODUCTION MANAGER PRODUCTION EDITOR MARKETING MANAGER CREATIVE DIRECTOR SENIOR DESIGNER PRODUCTION MANAGEMENT SERVICES SENIOR ILLUSTRATION EDITOR PHOTO EDITOR MEDIA EDITOR COVER PHOTO George Hoffman Michael McDonald Brian Kamins Sarah Vernon Jacqueline Kepping Dorothy Sinclair Erin Bascom Karolina Zarychta Harry Nolan Wendy Lai Laserwords Maine Anna Melhorn Elle Wagner Greg Chaput Maciej Frolow/Brand X/Getty Images, Inc. This book was set in 10/12pt Garamond by Laserwords Private Limited, and printed and bound by RR Donnelley/Jefferson City. The cover was printed by RR Donnelley/Jefferson City. This book is printed on acid free paper. Founded in 1807, John Wiley & Sons, Inc. has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. Our company is built on a foundation of principles that include responsibility to the communities we serve and where we live and work. In 2008, we launched a Corporate Citizenship Initiative, a global effort to address the environmental, social, economic, and ethical challenges we face in our business....

Words: 241803 - Pages: 968

Premium Essay

Paper

...Table of Contents WELCOME FROM ACADEMIC PROGRAM DIRECTOR ............................................................................ 1 MEET THE FACULTY................................................................................................................................... 2 ORIENTATION SCHEDULE ....................................................................................................................... 10 ACADEMIC CALENDAR ............................................................................................................................. 11 MASTER OF SCIENCE IN FINANCE PROGRAM SUMMARY ................................................................. 12 GETTING STARTED .................................................................................................................................. 13 JHED ID .................................................................................................................................................. 13 Blackboard FAQs .................................................................................................................................... 13 Integrated Student Information System (ISIS) ........................................................................................ 14 LIFE AT THE CAREY BUSINESS SCHOOL .............................................................................................. 15 HEALTH INSURANCE FOR......

Words: 17730 - Pages: 71

Premium Essay

Htc Annual Report 2012

...CHAPTER 4 CORPORATE CHAPTER 5 CAPITAL AND SHARES TABLE OF CONTENTS GOVERNANCE 94 CHAPTER 6 FINANCIAL STATUS, OPERATING CHAPTER 1 LETTER TO HTC SHAREHOLDERS 4 34 50 RESULTS AND RISK MANAGEMENT CHAPTER 2 COMPANY PROFILE CHAPTER 3 BUSINESS OPERATIONS 104 CHAPTER 8 FINANCIAL INFORMATION CHAPTER 7 AFFILIATE INFORMATION AND OTHER SPECIAL NOTES 14 118 138 CHAPTER 1 LETTER TO HTC SHAREHOLDERS 1 LETTER TO SHAREHOLDERS LETTER TO SHAREHOLDERS 1 LETTER TO SHAREHOLDERS Dear shareholders, Faced with increasingly intense competitive pressure in the global smartphone market, HTC Corporation (HTC) has in the past year continued to allocate resources to product development, technological innovation, and marketing in order to satisfy consumer needs and at the same time solidify HTC's core developmental ability. 2012 saw HTC reach its 15th anniversary, marking an important milestone. In February, at Mobile World Congress (MWC) held in Barcelona, HTC started a camera and audio revolution with the announcement of its One series of smartphones. These smartphones introduced new technological advances such as "Amazing Camera" and "Authentic Sound," bringing consumers a brand-new user experience. In addition, in order to meet the needs of different consumers, HTC has successfully rolled out a variety of smartphones such as the DROID DNA, HTC J, and HTC Butterfly that deliver superior performance and eye-catching,......

Words: 100356 - Pages: 402

Free Essay

There Once Was a Young Wild Pony

...a b c d e f g h i j k l m n o p q r s t u v w x y z aa ab ac ad ae af ag ah ai aj ak al am an ao ap aq ar as at au av aw ax ay az ba bb bc bd be bf bg bh bi bj bk bl bm bn bo bp bq br bs bt bu bv bw bx by bz ca cb cc cd ce cf cg ch ci cj ck cl cm cn co cp cq cr cs ct cu cv cw cx cy cz da db dc dd de df dg dh di dj dk dl dm dn do dp dq dr ds dt du dv dw dx dy dz ea eb ec ed ee ef eg eh ei ej ek el em en eo ep eq er es et eu ev ew ex ey ez fa fb fc fd fe ff fg fh fi fj fk fl fm fn fo fp fq fr fs ft fu fv fw fx fy fz ga gb gc gd ge gf gg gh gi gj gk gl gm gn go gp gq gr gs gt gu gv gw gx gy gz ha hb hc hd he hf hg hh hi hj hk hl hm hn ho hp hq hr hs ht hu hv hw hx hy hz ia ib ic id ie if ig ih ii ij ik il im in io ip iq ir is it iu iv iw ix iy iz ja jb jc jd je jf jg jh ji jj jk jl jm jn jo jp jq jr js jt ju jv jw jx jy jz ka kb kc kd ke kf kg kh ki kj kk kl km kn ko kp kq kr ks kt ku kv kw kx ky kz la lb lc ld le lf lg lh li lj lk ll lm ln lo lp lq lr ls lt lu lv lw lx ly lz ma mb mc md me mf mg mh mi mj mk ml mm mn mo mp mq mr ms mt mu mv mw mx my mz na nb nc nd ne nf ng nh ni nj nk nl nm nn no np nq nr ns nt nu nv nw nx ny nz oa ob oc od oe of og oh oi oj ok ol om on oo op oq or os ot ou ov ow ox oy oz pa pb pc pd pe pf pg ph pi pj pk pl pm pn po pp pq pr ps pt pu pv pw px py pz qa qb qc qd qe qf qg qh qi qj qk ql qm qn qo qp qq qr qs qt qu qv qw qx qy qz ra rb rc rd re rf rg rh ri rj rk rl rm rn ro rp rq rr rs rt ru rv rw rx ry rz sa sb sc sd se sf sg sh si sj sk sl sm sn so...

Words: 29642 - Pages: 119