Financial Risk Management

Course Outline

Organisations across the world are entering into partnerships and commercial arrangements with other entities such as clients, strategic partners or suppliers. It is critically important that the financial strength of this partner is understood in order to accurately assess and manage the risk to your organisation.

Partner failure is often a major hazard identified in project risk analysis and can result in financial strain and even late payment for projects, as in the case of the widely reported collapse of Carillion, a large UK outsourcing company. Financial analysis is therefore a key skill in assessing and understanding how some key risks can be mitigated.

This course will equip you with the skills to undertake an analysis of other organisations to inform decisions as to whether to enter a partnership arrangement. It will also explore how to understand the developing financial health of the organisations you are already partnering by analysing the ratios derived from published accounts and examining trends and relationships between different sets of figures published in core statements and external sources of information.

Highly practical and interactive, this programme will focus on action planning and case study analysis as a method to put your learnings into action back in the workplace.

Course Objectives: 

On completion, you will be able to:

• Undertake analysis of an organisation’s accounts
• Identify information that will inform on the financial strength of an organisation
• Understand the risks presented by projects or services and how to mitigate them
• Summarise a financial assessment and present it in context

Key Topics

• The objectives of financial analysis
• Sources of information for analysis
• Analysing accounts – calculating and understanding the key financial metrics
• Using and understanding the limitations of other sources information, including company statements, credit agencies and media
• Securing further information from the target organisation
• Risk mitigation actions and strategies