P3 overview - introduction

In this lesson

1. 0:00 P3 overview and strategic context
2. 0:36 How P3 fits the strategic level papers
3. 1:38 Major syllabus changes and hedging removal
4. 2:26 Case study role and business orientation
5. 3:12 Four core syllabus areas explained
6. 4:25 Defining risk upside and downside
7. 5:31 Strategic versus operational risk
8. 6:34 Business risk and non-business risk
9. 7:09 International business risk complexity
10. 7:43 Risk assessment tools and techniques
11. 9:31 Risk mapping and diversification benefits

About this lesson

The paper has been significantly restructured—hedging content has moved to F3, making P3 more manageable while maintaining its core focus on identifying and managing organisational risks. You'll discover why P3 is positioned as the "risk-aware" counterpart to the optimistic strategy of E3 and the financial feasibility analysis of F3, and how all three papers come together in the strategic case study. This overview covers the key risk categories you'll encounter throughout the course: enterprise risk management, strategic risk, internal controls, and cyber risk. You'll explore how to think systematically about different types of risk—from strategic versus operational risks to business versus non-business risks—and why seemingly minor operational issues can have serious consequences for an organisation. The session introduces essential risk assessment tools including regression analysis, scenario planning, sensitivity analysis, and risk mapping, showing you how these frameworks help identify risks that might otherwise be overlooked. A crucial theme running through P3 is understanding how risks interact with each other. You'll learn why diversification matters and how exposures in different areas can sometimes offset one another, meaning you need to consider the full picture before deciding on risk management actions. This foundation prepares you to move through the detailed syllabus with confidence, knowing exactly how each topic contributes to your role as a risk-aware finance professional.

Duration: 11m