The "CIMA: Risk Management in Financial Decision Making" course is designed to give students a deep understanding of how risk affects financial decisions and business strategy. Beginning with an introduction to the concept of financial risk, learners explore the different types of risks, including market, credit, liquidity, and operational risks. The course emphasizes the importance of defining risk appetite and tolerance levels, aligning them with business goals to drive informed and responsible decision-making.

As the course progresses, students learn techniques for identifying and assessing financial risks through both qualitative and quantitative methods. Tools such as probability and impact analysis, risk mapping, and heat maps are introduced to help students visualize and prioritize risks effectively. Measuring and modelling risks is a core focus, where learners explore Value at Risk (VaR), stress testing, sensitivity analysis, simulation techniques, and understand the inherent limitations of various risk measurement models.

Practical risk management strategies are a major part of the course, including avoidance, reduction, transfer, and acceptance techniques. Learners gain hands-on insights into using hedging strategies with derivatives, employing diversification, and utilizing insurance and contingency planning as tools to mitigate financial risks. A special focus is given to integrating risk management into broader financial decision-making, including capital investment projects, mergers and acquisitions, and the application of risk-adjusted discount rates to reflect risk exposure accurately.

Governance and regulatory considerations are covered comprehensively, ensuring that students understand the frameworks that govern financial risk management both in the UK and internationally, such as the Basel Accords, COSO, and ISO 31000. Transparency, disclosure, and the critical role of risk committees in corporate governance are also discussed to prepare learners for managing risk in highly regulated environments.

Throughout the course, practical case studies on investment portfolios, risk management failures, and strategic risk handling in large corporations allow learners to apply their knowledge to real-world scenarios. The final project challenges students to create a comprehensive risk management plan for a financial decision, reinforcing their ability to think critically and strategically about risk in complex business environments.