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CIMA P3 · Strategic Level

B. Strategic risk

Strategic risk management at CIMA Strategic Level examines how external threats and regulatory changes impact organisational objectives, and the governance frameworks essential for effective risk mitigation. This section equips finance professionals with competencies in risk identification, evaluation and management through scenario planning, stress testing and corporate governance principles.

  • 10 lessons
  • 2 modules
  • 1.7h of video
  • ~25% of the exam
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What you'll learn

By the end of B. Strategic risk.

  • Explain the relationship between organisational strategy and strategic risk exposure
  • Identify external threats including market disruption and regulatory changes that impact strategic objectives
  • Analyse strategic risks using scenario planning and stress testing techniques
  • Evaluate governance frameworks and their effectiveness in mitigating strategic risk
  • Apply ethical considerations and reputational risk management in strategic decision-making
  • Describe the role of the board of directors in addressing the agency problem and risk oversight

The lessons

10 lessons, module by module.

Strategy, reputation and risk

4 lessons
  1. 1 Introducing strategy and risk 8m
  2. 2 Positioning and strategic choice 12m
  3. 3 Evaluation, scenario planning and stress testing 15m
  4. 4 Ethics and reputational risk 7m

Governance risk

6 lessons
  1. 1 Corporate governance 11m
  2. 2 The agency problem 7m
  3. 3 Principles v rules based governance 8m
  4. 4 The board of directors 12m
  5. 5 Board sub-committees and director remuneration 11m
  6. 6 Failures of governance and the US and UK codes 9m

Questions

About B. Strategic risk.

What does the Strategic Risk section cover?

This section covers the identification and evaluation of strategic risks arising from external threats such as market disruption and regulatory changes. It provides frameworks for risk assessment through scenario planning and stress testing, alongside corporate governance principles and ethical considerations essential for effective risk mitigation and organisational resilience.

Is this section important for the P3 exam?

Yes, strategic risk management is a core pillar of the P3 exam. The objective test includes multiple questions on risk identification, governance frameworks, scenario planning and ethical considerations. Mastery of this section is essential for achieving a strong performance in P3.

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