Business and technology qualifications, Levels 3-6, in Brussels. Explore qualifications
Portal login
Level 6 Diploma in Business Management

Business Risk Assessment in Financial Decisions

BM604 · Financial Decision Making — Week 2 of 16

CourseBM604
Week2 of 16
SemesterII
TutorOnline in the course chat

This week’s topics

Business Risk Assessment in Financial Decisions

  1. Financial risk versus operational and commercial risk
  2. Sensitivity and scenario analysis
  3. Risk appetite and mitigation frameworks
  4. Systematic and unsystematic risk characteristics
  5. CIMA P2 Risk and Uncertainty - Sensitivity Analysis
  6. CIMA F3 Systematic risk and the Capital Asset Pricing Model - Introduction
  7. ACCA AFM | Risk Mgt. for Cashflow Forecast | Expected Value, Simulation, Sensitivity | Lecture 32

What you will be able to do

  • 1.3 Evaluate the characteristics of business risk that impact on financial and business decisions.

Activity

Start with this week’s 3 videos, then: Seminar, guided reading and a short written task: evaluate the characteristics of business risk that impact on financial and business decisions.

Study materials

Videos

  • CIMA P2 Risk and Uncertainty - Sensitivity Analysis · YouTube · OpenTuition · 21 min · for registered students
  • CIMA F3 Systematic risk and the Capital Asset Pricing Model - Introduction · YouTube · OpenTuition · 12 min · for registered students
  • ACCA AFM | Risk Mgt. for Cashflow Forecast | Expected Value, Simulation, Sensitivity | Lecture 32 · YouTube · Tutor Star · 32 min · for registered students
  • Session 13: Incremental Cashflows and Dealing with Uncertainty · YouTube · Aswath Damodaran · 82 min · for registered students
  • Uncertainty in Investing and Valuation: What if questions, Scenario Analysis and Simulations · YouTube · Aswath Damodaran · 114 min · for registered students

Further resources

  • The Orange Book: Management of Risk – Principles and Concepts (HM Treasury, 2023) · PDF · GOV.UK, guidance; 64 pages · for registered students
  • Political Risk, Economic Risk, and Financial Risk · PDF · Reading, article · for registered students
  • Principles of Accounting Vol. 2, ch. 3.3: Break-even sensitivity analysis · PDF · OpenStax, textbook chapter; pp. 135–141 · for registered students
Materials marked “for registered students” open in the student portal, which is set up as soon as you receive final acceptance.
Week 1Week 3
Course chat

Admitted students ask questions on this week’s page in the student portal: an AI assistant trained on the course answers first, and during the course’s timetabled classes Connect to your tutor brings your tutor into the chat, who may start a call if needed.

Open this week in the portal
Course plan
  • Week 1: Strategic Business Decision Making and Financial Drivers
  • Week 2: Business Risk Assessment in Financial Decisions
  • Week 3: Accounting Foundations and Expenditure Classification
  • Week 4: Structure and Interpretation of Final Accounts
  • Week 5: Financial Performance Metrics and Long-Term Sustainability
  • Week 6: Sources and Selection of Business Finance
  • Week 7: Capital Expenditure Appraisal Techniques
  • Midterm: Midterm evaluation
  • Week 9: Off-Balance Sheet Financing and Risk Management
  • Week 10: Ownership Structures, Governance and Agency Dynamics
  • Week 11: Ethics, Governance Controls and Financial Accountability
  • Week 12: Applying Financial Decision Making in practice: case studies
  • Week 13: Assignment workshop: research, planning and referencing
  • Week 14: Assignment workshop: drafting, feedback and improvement
  • Week 15: Review and coursework completion
  • Final: Final assessment and submission
Back to the course
Scroll