Syllabus A2. Financial Strategy Formulation 3 / 5

a) Assess organisational performance using methods such as ratios and trends. 

b) Recommend the optimum capital mix and structure within a specified business context and capital asset structure.

c) Recommend appropriate distribution and retention policy.

d) Explain the theoretical and practical rationale for the management of risk. 

e) Assess the organisation’s exposure to business and financial risk including operational, reputational, political, economic, regulatory and fiscal risk.

f) Develop a framework for risk management, comparing and contrasting risk mitigation, hedging and diversification strategies.

g) Establish capital investment monitoring and risk management systems.

h) Advise on the impact of behavioural finance on financial strategies / securities prices and why they may not follow the conventional financial theories.
Financial Strategy Formulation