CIMA Strategic level Internal controls to manage risk

CIMA Strategic level Internal controls to manage risk: The Association of Insurance and Risk Managers (AIRMIC) welcomes this report on a topic that has increasing relevance to the success and good governance of all types of organisations. While the case studies are diverse, the common messages are obvious, providing information and guidance for senior management, as well as offering lessons to risk managers who are seeking to make an enhanced contribution to the success of their employer. The importance of maintaining a risk aware culture is recognised in the new UK Corporate Governance Code and the components of a successful risk aware culture are described in this report. Also, the benefits of a well developed risk reporting structure (risk architecture) are explained, including the need to establish risk escalation procedures. Risk communication within risk architecture enables an organisation to achieve a consistent and appropriate risk response. This approach will enable risk management activities to fully support the achievement of the strategic objectives of the organisation.

CIMA Strategic level Internal controls to manage risk: Who should attend?
This course will be of particular benefit to compliance officers and to administration and operations staff in the financial services industry, who need to understand the principles and significance of risk management and control, without analysing market risk or portfolio sensitivity in detail. It will also be very helpful to managers within financial services companies, and to their financial advisers.

CIMA Strategic level Internal controls to manage risk: What you will gain
A greater understanding of:

legal background and corporate governance issues
compliance
company law
FSMA
Sarbanes Oxley
combined code
SYSC – FSA requirements
strategy and business risk
management reporting and balanced scorecards
KPIs and KRIs
risk appetite and risk control structures
management of the components of risk
credit risk
operational risk
market risk
other (e.g. liquidity, legal, etc)
examples of poor risk management in the financial services industry.

CIMA Strategic level Internal controls to manage risk: Programme outline

Legal background and corporate governance issues
Compliance – company law/FSMA/Sarbanes Oxley/combined code
SYSC – FA requirements
Strategy and business risk
Management reporting and balanced scorecards
KPIs and KRIs (key performance indicators and key risk indicators)
Risk appetite and risk control structures
Management of the components of risk – credit risk/operational risk/market risk/others
Examples of poor risk management in the financial services industry.

CIMA Strategic level Internal controls to manage risk

CIMA Strategic level Internal controls to manage risk: The Chartered Institute of Management Accountants (CIMA) is a UK based professional body offering training and qualification in management accountancy and related subjects. It is focused on accountants working in industry, and provides ongoing support and training for members.

CIMA is one of the professional associations for accountants in the UK and Ireland. Its particular emphasis is on developing the management accounting profession. CIMA is the largest management accounting body in the world with more than 227,000 members and students in 179 countries. CIMA is also a member of the International Federation of Accountants.

CIMA operates a standard scheme of qualifying examinations for prospective members. It promotes local education, training and management development operations, and new techniques through its research foundation and the dissemination of management accounting practices through publications and other media related activities. CIMA has been active in recent educational and vocational initiatives in former Eastern bloc countries. It publishes a monthly journal, supplied free to members and registered students, called ‘Financial Management’.

CIMA is recognised as a professional accounting body for various statutory purposes by UK and various overseas governments. The institute regulates the activities of its members by a code of practice, a discipline committee and (a recent innovation) a continuing education scheme. Its governing body is its council, comprising members elected from regional branches. Each of the branches has a committee and is responsible for much of the ‘grass roots’ activity. Activity such as qualification development is undertaken from the London head office.

The CIMA Global Business Challenge, an annual international business and strategic management competition for undergraduates around the world, is designed to bring out the best in the young business leaders of tomorrow.

In July 2009, CIMA added an online community – CIMAsphere – to its website. The community consisted of a range of blogs, discussion boards, groups, community answers, expert Q&A sessions and some social networking features for members, students and the general public. This has since been shut down. Members are instead encouraged to join the CIMA LinkedIn group, and students are directed to CIMAconnect, an online study support portal.

In 2011, CIMA entered into a joint venture with the American Institute of Certified Public Accountants (AICPA) to launch a global management accounting designation called the Chartered Global Management Accountant (CGMA).In the Americas outside the U.S., non-U.S. CPAs can obtain the new designation as an AICPA International Associate, after a rigorous assessment process. In the rest of the world, new designation holders are able to become members of CIMA after the same assessment process.

CIMA is proactive to tie up with American CPA because of the current convergence trend between US-GAAP and IFRS, reinforced following the merger of the iconic New York Stock Exchange with Germany’s Deutsche Boerse AG. “It remains to be seen whether companies listed in a combined exchange would be required to report under IFRS, US GAAP or both, but as the US appears to be moving towards IFRS adoption it is more likely the international standards would be the accounting rules of choice”.