For the CPA Program • Elective subject
Financial Risk Management for the CPA Program, cut to 47 pages of notes, 64 flashcards, a two-page cheat sheet and a 65-question practice exam, so you study what carries the marks. Packs $45 to $120 AUD, instant PDF download.
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About the subject
Financial Risk Management is an elective in the CPA Program. This study guide covers how organisations assess and manage financial risk: liquidity, funding and investment, derivatives, interest rate and currency risk, hedge accounting, and controls.
The exam is all multiple choice, and most questions are built around a business scenario. You have to take a concept, a risk category, a derivative, a hedging tool, and apply it to facts you have never seen before, which is where most marks are won or lost. The notes are built for that: the ideas and the formulas first, then how to use them in the exam.
The subject splits into eight modules. The notes match the exam, so the parts worth the most marks get the most of your time.
What's inside
Three parts that work together. Learn it in the notes, drill it with the exam, lock it in with the cards.
The whole subject rewritten in plain English, the way a colleague who passed last year would explain it.
Sixty-five multiple-choice questions, built around real scenarios and written for an open-book exam, matching the real all-multiple-choice format.
The last-week toolkit. Quick recall on the go, and one quick reference sheet for the open-book exam.
A look inside
This is the actual work, not a description of it. Genuine pieces from the notes, flashcards, cheat sheet and exam, so you can see the quality before you spend a cent. It is a taste. The full pack goes a lot deeper.
A forward and a future both oblige both parties to trade. An option obliges only the seller; the buyer chooses whether to exercise. The most an option buyer can lose is the premium.
The exact wording to use, pulled out so you cannot miss it.
Sorting each exposure into the right category is a skill the exam tests directly.
Every treatment question maps to one of these four.
How does ISO 31000:2018 define risk?
As the effect of uncertainty on objectives. That effect can be favourable or unfavourable, so risk is not only the chance of loss. Defining risk against objectives is what ties risk management to what the organisation is trying to achieve.
Print double-sided, cut, and drill them anywhere.
| Measure | Formula |
|---|---|
| Current ratio | current assets / current liabilities |
| Quick ratio | (current assets - inventory) / current liabilities |
| Cash conversion cycle | DIO + DSO - DPO |
Every formula on the sheet, laid out for fast lookup in the open-book exam.
VaR is not a worst case. It is the threshold a loss should stay within at the stated confidence. Losses beyond VaR still happen, and can be much larger.
Tips and traps sit right where people slip, so you learn the mistake before you make it.
WACC uses market-value weights and the after-tax cost of debt. Book-value weights or a pre-tax debt cost give the wrong answer, and the difference can flip an accept decision into a reject.
The notes tell you how the marks are awarded, not just what the formula is.
An exporter lists four things that could hurt next year's result: a major customer might fail to pay, interest rates might rise on its loans, the Australian dollar might move against it, and a key system might fail. Which pairing of risk to category is correct?
Sixty-five questions, matching the real all-multiple-choice format, every one worked through.
Credit risk is the risk that a counterparty does not pay, and operational risk is the risk of loss from failed systems, people or processes, so the first pairing is right. Interest rate and currency moves are market risks. Sorting each exposure into the correct category is the skill being tested.
A customer default is credit risk rather than market risk, and a rate rise is a market risk rather than operational. A currency move is a market risk, not credit, and a system failure is operational, not market. A rate rise is not a liquidity risk.
Every question is marked up like this, including why each distractor is wrong, so you learn why you missed it, not just that you did.
And this is a sample. The full pack has all 47 pages, 64 cards, the cheat sheet, and the complete 65-question exam with worked solutions.
Made for studying after work
You are fitting this around a full-time job. The notes are cut down so your study time goes to the parts that earn marks, not to re-reading the textbook.
Eight modules of material sorted into what gets tested and what does not.
The modules that carry the most marks get the most space. The rest is kept short.
Worked solutions show how to take a principle and answer a scenario you have not seen.
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For revision when you know the theory and want to practise under exam conditions.
Everything for the subject, from first read to the final open-book exam.
For learning the subject from scratch and building recall.
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