Introduction
The programme “Professional Diploma in Operational and Financial Risk Management” develops professional practice in Professional Diplomas. It connects the subject with workplace challenges by examining existing evidence and practices and choosing methods appropriate to the organization and its available resources.
The learning progresses from financial statement and report analysis to financial planning and budget development, with practical work on risk assessment, controls, and response, procedure analysis and work simplification, cash, liquidity, and working capital management. Participants prepare outputs to support workplace application and review the quality and results of implementation.
Learning objectives
- Interpret performance, financial position, and cash flows using documented analysis with clear limitations in an application related to “Professional Diploma in Operational and Financial Risk Management”.
- Prepare a risk register connecting causes, consequences, controls, and treatment responsibilities.
- Redesign a procedure to reduce delays and rework while maintaining controls.
- Prepare a cash forecast and options for addressing liquidity and working capital gaps.
- Build an integrated budget, test its scenarios, and monitor variances.
Learning areas
1. Financial Statement and Report Analysis
- Read the relationships between the statements of financial position, performance, and cash flows and the notes, identifying the effects of accounting policies and estimates.
- Perform horizontal and vertical analysis and compare profitability, liquidity, efficiency, and leverage indicators, considering the nature and size of the business.
- Examine earnings quality, cash flows, and nonrecurring items, and identify differences between accounting results and actual liquidity.
- Test the sensitivity of results to changes in sales, costs, collections, and financing, stating the assumptions and constraints in each scenario.
- Write a financial report linking indicators to management's question and available alternatives, presenting risks and additional data needed for the decision. The application examines a case related to “Professional Diploma in Operational and Financial Risk Management”.
2. Risk Assessment, Controls, and Response
- Define the work context, objectives, and assessment boundaries, and distinguish the risk source, potential event, and effects on results.
- Gather risks from processes, data, past incidents, and interviews with responsible staff, and document causes and existing controls.
- Estimate likelihood and impact using stated criteria, and review control effectiveness to determine residual risk levels.
- Select a response proportionate to the risks, resources, and authority, and specify the owner, deadline, and early warning indicator.
- Test a scenario involving changing circumstances, update the risk register, and present material risks and required decisions to the appropriate authority.
3. Procedure Analysis and Work Simplification
- Define the procedure's start, end, owner, inputs, and outputs, and collect data on processing time, waiting, and rework.
- Map the actual workflow between roles, identifying approvals, handovers, bottlenecks, and duplicate data entry.
- Analyze the value added by each step and the controls it provides, and propose combining, removing, or running steps in parallel with reasons for the choice.
- Document the improved procedure with clear authorities, forms, timelines, and standards, and review its effects on beneficiaries and delivery teams.
- Test the procedure on a limited case, measure time, errors, and output quality, and document adjustments and the rollout plan.
4. Cash, Liquidity, and Working Capital Management
- Analyze the cash cycle from purchasing to collection, identifying the effects of inventory, receivables, and payment terms on financing needs.
- Forecast receipts and payments by maturity, and document data sources and the likelihood of delays in expected cash flows.
- Classify receivables and debt aging, track collections and settlements, and connect follow-up actions to approved authorities and policies.
- Compare options for addressing deficits or deploying surpluses according to cost, liquidity, risk, and contractual constraints requiring review.
- Test a cash stress scenario, set alert thresholds and escalation actions, and update forecasts based on actual results.
5. Financial Planning and Budget Development
- Translate objectives into quantitative assumptions for sales or services and resources, identifying the owner and data source of each estimate.
- Build revenue, expenditure, and capital budgets and link them to cash flows, checking consistency across supporting plans.
- Compare fixed budgets, flexible budgets, and rolling forecasts, and select an approach suited to business volatility and decision frequency.
- Test base, conservative, and optimistic scenarios, and analyze the effects of the variables with the greatest influence on results and liquidity.
- Prepare a variance report distinguishing changes in volume, price, and efficiency, and propose actions, responsibilities, and follow-up dates.
Practical outputs
- A comparative financial analysis report and a memo of findings and assumptions.
- A risk register, control matrix, and prioritized treatment plan.
- An improved procedure map, service profile, and acceptance criteria for implementation.
- A cash flow forecast and a plan to improve collections and the cash conversion cycle.
- An operating and cash budget, assumptions register, and variance report.
Who should attend
- Practitioners, specialists and supervisors whose work relates to the programme subject.
- Managers and teams working in professional diplomas, according to their practical responsibilities.
- Professionals responsible for applying the outputs of “Professional Diploma in Operational and Financial Risk Management” within their organizations.
Prerequisites
- Working familiarity with the programme field and the ability to discuss a professional case or challenge.
- Confirm the suitability of your experience and any specialist prerequisites with the Union before participation.
Conclusion
The programme “Professional Diploma in Operational and Financial Risk Management” brings together concepts, case review and a practical application. Participants prepare steps that can be adapted to their responsibilities and organizational resources, with an indicator to follow application and review results after returning to work.
Participation arrangements and any special requests are specified in the confirmation issued by the Union.