This lesson examines how risk management is elevated to a strategic level. It covers the identification and assessment of enterprise-level risks, the application of risk mitigation strategies, and the role of internal controls in managing cyber risk and other strategic threats. This is a key area of the CIMA P3 and CMA Part 2 syllabi .

 

  • Enterprise Risk Management (ERM) at a Strategic Level: The CMA Part 2 syllabus dedicates 10% to “Enterprise Risk Management” . This includes “Risk Identification and Assessment,” “Risk Mitigation Strategies,” and “Enterprise Risk Management (ERM)” .

  • Types of Risk and Appetite: The CMA Part 2 syllabus requires candidates to “Identify and assess various types of business risks” . This is expanded in the CIMA syllabus, which covers “strategic risk, enterprise risk, cyber risk and internal controls” . The CGMA syllabus on “Strategic Control” includes “Analysing Risk and the Risk Appetite” as a key element of strategic management .

  • Risk Mitigation Strategies: The CMA Part 2 syllabus covers strategies like diversification, hedging, and insurance . The CIMA syllabus also includes “Strategic Risk” and “Cyber Risk” as specific areas of focus .

  • Internal Controls for Risk Management: The CIMA syllabus requires candidates to “Analyse internal controls for risk management” . This connects back to Module 9 but applies the principles to strategic risk scenarios.

  • The CFO’s Role in Risk: The CIMA syllabus positions risk management at the strategic level, expecting management accountants to “support organisational leaders to craft strategy; evaluate and manage risks that might prevent organisations from successfully implementing strategy” .

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