notes
The Specific Competencies IV-Governance,StrategyandRiskManagement
IV-2
Evaluates an entity’s strategies
IV-2.6
Identifies the factors that impact the entity’s financial strategies
Level B
Understands the nature of capital markets and how they operate Identifies the types of information required by the entity for its financial decision-making Identifies the general macro-economic factors that impact the various strategies of the entity, (e.g., domestic and international capital markets, inflation, political stability) Explains, in general terms, the effect of macro-economic factors on the financial strategies of an organization Explains, in general terms, the effects of industry-specific issues on the financial strategies of the entity (e.g., the effects of its competitors’ or its suppliers’ businesses) IV-2.7
Evaluates the entity’s performance measurement and reporting strategy
Level A
Evaluates the entity’s approach to monitoring f inancial and non-financial performance (external and internal, quantitative and qualitative) Evaluates the nature and timeliness of the entity’s distribution and use of information and the effects on financial and non-financial performance Evaluates the strategy’s adequacy in meeting the entity’s and its stakeholders’ needs and in meeting legal and regulatory requirements
IV-3
Evaluates an entity’s plans for risk management
IV-3.1
Understands the entity’s risk management processes
Level B
Understands and explains the critical components of an ef fective risk management program (e.g., identifying, analyzing, designing, implementing, measuring and monitoring) Understands and explains the common methods of managing risk (e.g., avoidance, transference, acceptance, mitigation) Identifies the possible consequences of having an ineffective risk management program IV-3.2 Evaluates the entity’s risk management program
Level B
Identifies the existence of policies, procedures, processes and reporting mechanisms that are part of the entity’s risk management program Identifies the potential impact of signi ficant cha nges in the entity’s environment on the organization’s risk profile Evaluates, on a preliminary basis, the consistency of the policies, procedures, etc., with the entity’s stated mission and strategies
