P2 overview - risk and control

In this lesson

1. 0:00 Risk and uncertainty overview
2. 1:01 Defining risk versus uncertainty
3. 2:16 Decision-making approaches and expected values
4. 3:43 Probability and conditional outcomes
5. 4:35 Risk calculations and standard deviation
6. 5:46 Classifying and mapping business risks
7. 8:00 Ethics and corporate social responsibility

About this lesson

This overview covers the two main syllabus areas: risk and uncertainty (including expected values, decision trees, and probability calculations) and analysis and management of risk (risk mapping, classification, and mitigation strategies). You'll discover practical approaches to quantifying risk through variance and standard deviation, understand how to apply risk management concepts to real-world scenarios, and explore the ethical and corporate social responsibility considerations that underpin professional practice as a CIMA member. This session breaks down what might feel like a complex final module into manageable chunks. Whether you're tackling P2 for the first time or revisiting it, you'll gain clarity on decision-making tools like maximin and maximax strategies, how to interpret decision trees, and the difference between upside and downside risk. The tutor walks through worked examples—such as a stock purchasing decision influenced by weather conditions—to show how these concepts apply in practice. You'll also explore how businesses classify and respond to risks (from product risk to financial risk), why risk mapping matters, and how the global pandemic has reshaped how organisations think about low-probability, high-impact events. The final segment covers ethics and corporate social responsibility, reinforcing the values expected of qualified CIMA professionals.

Duration: 9m