ACC598 Financial Risk Management CPA (8)
CSU Discipline Area: Accounting (ACCOU)
Duration: One session
Abstract:
Financial risk management is the strategic process by which financial risks are identified, assessed, measured and managed in order to create economic value for the organisation and its stakeholders. Interest rate risk, exchange rate, commodity risk and credit risk are fundamental components of financial risk. Understanding these risks and how they are managed using financial products such as forwards, futures, swaps and options are explored in this subject. Accounting for derivative and hedge transactions is considered. The responsibility of senior executives to be cognisant of financial risks and their management is underscored.
+ Subject Availability Modes and Locations
| Session 1 | |
|---|---|
| Internal | CSU Study Centre Melbourne |
| Internal | CSU Study Centre Sydney |
| Distance | Wagga Wagga |
Continuing students should consult the SAL for current offering details: ACC598
Where differences exist between the Handbook and the SAL, the SAL should be taken as containing the correct subject offering details.
Enrolment restrictions:
Available only to students enrolled in the Master of Professional Accounting (CPA) or the Master of Accounting Practice. Enrolment in this subject is further restricted to those students concurrently enrolled in the CPA Program professional level segment Financial Risk Management.
Objectives:
Upon successful completion of this subject, students should:
- be able to explain the financial risk management process and its relationship to governance responsibilities.
- be able to evaluate interest rate risk and exchange risk and explain how to mitigate risk through forwards, futures, swaps and options.
- be able to account for risk management practices involving derivatives and hedges and be apply to apply reporting and disclosure requirements contained in applicable accounting standards.
- be able to apply controls to ensure financial risks are managed within the business in accordance with strategic and operational policies.
Syllabus:
The subject will cover the following topics:
- The financial risk management process
- Cash flow and liquidity management
- Risk management using derivatives
- Techniques for risk management
- Accounting for derivatives
- Reporting and disclosure requirements
- Interest rate risk management
- Foreign exchange and commodity risk management
- Internal and governance controls for risk management.
The information contained in the 2013 CSU Handbook was accurate at the date of publication: 24 April 2013. The University reserves the right to vary the information at any time without notice.