CGMA Finance Leadership Program body of knowledge
Wherever you start the CGMA® Finance Leadership Program, you will have access to the entire body of knowledge, from the basic, foundational skills to the most advanced business concepts. You will also have access to all the practical tools and frameworks you can apply immediately in your organization. A bachelor’s degree or equivalent is required to start the CGMA program.
Please watch this short video for a comprehensive overview of the CGMA® Finance Leadership Program.
| Competencies | In this section you will learn.... | Including skillsets such as… |
| Finance Function Transformation | How to explain the role and transformation of the finance function | Explain how the finance function works cross-functionally to achieve strategic objectives |
| Recognize the importance of a digital mindset and ways to leverage technology | ||
| Explain finance function transformation in the digital age | ||
| Finance Business Partnering | How to explain main business functions and finance business partnering | Explain how to organize business, the purpose, types and common features of organizations |
| Explain the main functions of a business and how finance business partnering supports performance | ||
| Data and Analytics | How to identify how data backed analysis supports decision making | Identify ways in which the finance function uses data |
| Cost Accounting | How to apply cost accounting methods and techniques to assist Management in planning and decision making. | Define costing and explain the application of costing concepts |
| Budgeting and Planning | How to prepare and use budgets to provide information to management for planning and control | Prepare operating budgets and explain how they are used to manage performance |
| Know how to use a budget to exercise control over the operations of my organization | ||
| Short-Term Decision Making | How to use the concepts of relevant costs and revenues to present information which assists in short-term decision making | Produce quantitative analyses to support short-term tactical decisions |
| Apply cost/volume/profit analysis for organizations with multiple products or services | ||
| Explain the nature of uncertainty in the short term | ||
| Regulatory Environment | How to understand and can describe major global regulators overseeing financial reporting, governance of the IASB, the standard setting process and principles of corporate governance over financial reporting | Describe the rold of the major global regulators over financial reporting |
| Financial Statements | How to describe specific financial reporting standards and apply them to prepare basic financial statements | Describe the purpose of the IASB's Conceptual Framework for Financial Reporting" |
| Apply relavant IFRSs to to common transactions and events" | ||
| Principles of Taxation | How to distinguish between different types of taxes, prepare a basic corporate tax calculation and recognize key issues affecting international taxation | Distinguish between and identify features of different types of taxes |
| Prepare a basic corporate tax calculation | ||
| Identify important tax implications of operating in a foreign country | ||
| Managing Working Capital | How to explain the importance of cash and working capital management, identify sources of short-term financing and use working capital ratios as performance indicators | Identify important tax implications of operating in a foreign country |
| Define operating and cash cycles and calculate key working capital ratios | ||
| Select and use techniques to manage working capital |
| Competencies | In this section you will learn.... | Including skillsets such as… |
| Organizational Strategy | How to create a strategy to achieve a competitive advantage | Conceptualize strategy and strategic management processes |
| Analyze the business environment and the competition | ||
| Perform internal capabilities and SWOT analysis | ||
| Apply models of strategic performance monitoring | ||
| Leading and Managing People | How to manage and utilize leadership skills to improve team performance | Apply key leadership and management concepts |
| Advise on organizational culture and high performing teams | ||
| Discuss management performance techniques | ||
| Discuss effective communiction skills | ||
| Project Management | How to use project management tools to drive change or transformation | Manage organizational change and elevate resistance to change |
| Lead change with project management skills | ||
| Cost Competitiveness | How to achieve competitive advantage by managing costs | Advise managers on the use of activity-based techniques to support decision-making. |
| Discuss the importance of adding value to the customer | ||
| Discuss techniques for enhancing long-term profits | ||
| Organizational Performance | How to manage and control performance of the organization | Discuss strategies to avoid dysfunctionl decision making |
| Analyse and report on the performance of operating divisions | ||
| Evaluate the effects of a transfer pricing system on decision making and organizational performance | ||
| Pricing and Capital Investment Decisions | How to support pricing strategies and capital investment decisions | Use discounted cash flow techniques to evaluate capital investment decisions |
| Evaluate and recommend investment appraisal techniques | ||
| Discuss pricing strategies | ||
| Decision Making and Risk | How to identify and manage risk associated with decision making | Discuss risk and uncertainty that may arise in long-term decision making |
| Use quantitative techniques to analyse the risk in long-term decision making | ||
| Discuss how risk associated with a long-term decision can be managed | ||
| Advanced Financial Statements | How to produce advanced financial statements in line with IFRS | Apply IFRS standards to leases, revenue recognition, and financial instruments |
| Apply IFRS standards to other key transactions and events | ||
| Determine appropriate accounting policies in accordance with IFRS | ||
| Group Reporting | How to prepare financial statements in accordance wiht relevant international accounting standards for a group of entities | Discuss financial statement considerations for group reporting, including subsidiaries and associates |
| Demonstrate the impact on group financial statements due to changes in shareholding during the period | ||
| Examine financial statement considerations of business combinations | ||
| Analyze the prepration of a group's statement of cash flows | ||
| Long-term Financing | How to advise on decisions relating to sources of long-term finance, along with their associated costs | Sources of long-term financing |
| Examine the capital markets and the approach to raising long-term finance | ||
| Calculate the cost of raising equity finance and debt finance | ||
| Calculate acceptabel rates of return for various types of finance | ||
| Finance Statement Analysis | How to analyze financial statements to provide insights about financial performance and position | Use financial ratios to assess earnings performance and return on investment |
| Improve Financial Performance and Position | ||
| Understand the limitations of financial statement analysis |
| Competencies | In this section you will learn.... | Including skillsets such as… |
| Competitive Advantage | How to advise the organization on its current position and long term direction | Recommend basic process steps for creating a strategy |
| Advise on formulation of vision, mission and objectives | ||
| Apply tools to collect and interpret data in order to analyse the external environment and competition | ||
| Discuss the impact of the business ecosystem on organizational strategy | ||
| Apply tools to analyze customers and the product portfolio | ||
| Construct a SWOT analysis and identify strategic gaps | ||
| Strategy Formulation | How to advise on the formulation of strategy | Discuss responsibility for strategy and governance within an organization |
| Analyse strategic decision making and align with the values of the organization | ||
| Evaluate strategic options for competitive strategies and growth strategies | ||
| Evaluate ethical issues and the impact on strategic decision making | ||
| Recommend how to manage strategic relationships using stakeholder mapping | ||
| Strategy Implementation | How to succesful implement startegy to acheive a set of objectives and how to manage change. | Advise on how to communicate, enable and support strategy implementation |
| Analyze type and impact of organisational change |
||
| Develop a strategic performance measurement system | ||
| Recommend change management methodologies |
||
| Digital Strategy | How to create a digital transformation strategy that enables the organisation to harness the power of digitization | Explain the digital transformation and underpinning technologies |
| Analyze the impact of digitalization on the organization, | ||
| Develop and implement strategy of digital transformation in a business | ||
| Risk Oversight | How to provide expert guidance on the board’s responsibility for the management of risk | Prepare and analyze risk reports |
| Advise the board on appropriate strategic actions | ||
| Advise the board on governance structures | ||
| Risk Identification | How to discuss the risks that may expose my organization | Identify and explain the different types of risk |
| Explain the additional risks that are associated with international trade | ||
| Analyze ethical, social and environmental issues | ||
| Risk Assessment | How to determine an organization's risk factors | Determine an organization's risk factors |
| Internal Control | How to recommend and implement systems to control risk | Evaluate the acceptable level of risk |
| Construct a plan for managing effective internal audits | ||
| Discuss need for the internal control systems and information systems | ||
| Discuss and evaluate capital investment decisions | ||
| Discuss how to manage financial risk and fraud risk | ||
| Financial Objectives | How to advise on objectives that will affect decisions | Advise on strategic objectives for a variety of entities |
| Evaluate decisions based on financial and non-financial objectives | ||
| Evaluate decisions based on uncertainties for business variables | ||
| Evaluate decisions based on the business environment | ||
| Corporate Finance | How to advise on decisions involving investment, financing and dividends | Evaluate financial and strategic implications from acquisitions and mergers |
| Evaluate different valuation methods for various investment opportunities | ||
| Evaluate venture capital objectives | ||
| Evaluate the strategic implications of raising debt and equity finance | ||
| Advise on divident policies and cash needs of the organization | ||
| Regulatory Compliance | How to advise on regulatory issues that may affect company strategy | Advise on the development of a financial strategy tailored to the regulatory environment |
| Evaluate hedging opportunities to minimize risk | ||
| Advise on the reporting of social and environmental issues | ||
| Advise on the effect of price and service controls |
