CIMA Strategic level Responses to strategic risk
CIMA Strategic level Responses to strategic risk: Session 1
- Recommend appropriate measures for the strategic control and direction of various types of organisations.
- Control is a process of ensuring that ‘that which was supposed to happen actually happens.’ It regulates the process of formulating purpose and achieving it. Control can be administrative, social or individual.
- The three controls that are common to many organisations are: corporate strategy (long term), budgetary control (medium term) and variance analysis (short term).
- Recommend solutions for the risks of dysfunctional behaviour arising from the associated models of performance measurement.
- Understand the various performance measurement models and their advantages and disadvantages.
- Advise managers of the risks in the development of strategies for information systems that support the organisation’s strategic requirements.
- Understand disaster recovery.
- How IT and IS should support strategy and be controlled and implemented.
- Evaluate the risks of unethical behaviour.
- What are the various risks and how can they be mitigated.
- Practice questions under exam conditions. Review your answers and refresh your memory on topics that you are unsure.
- When practicing, you should try and time yourself to exam conditions, as a guide use 1.5 minutes per question. If possible, you should also aim to have 5-10 mins at the end of the test to review your answers.
- Evaluate the risks associated with poor governance structures.
- Understand governance roles and be able to apply theory.
CIMA Strategic level Responses to strategic 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”.
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