Risk Management assists any entities’ operating units and staff with managing and balancing risk created by programs and activities. Financial Risk Management is designed to protect against or mitigate losses to the people, facilities, and other assets of the entity.

Risk Management strives to provide financial protection and support services to all departments in the organization. The success of the department in fulfilling its responsibilities requires close coordination with, and cooperation from, the total organization for identification of potential risks and prompt notification of claims for losses sustained.

The deregulation of financial markets, the lifting of exchange controls and the motivation to capture international markets has meant that organizations must operate within a volatile global environment. These organizations are vulnerable to financial risk that may result from interest rate, exchange rate or commodity price movements. The purpose of this segment is to equip you with the necessary skills to assess these financial risks and manage them strategically with the use of financial instruments.

The Financial Risk Management segment extends the governance framework covered in the Ethics and Governance segment, further discusses the process of investment evaluation that was covered in the Strategic Management Accounting segment, and examines some of the practical elements and complexities of hedge accounting in relation to the International Financial Reporting Standards that were covered in the Financial Reporting segment.