Certificate in Finance, Risk & Decision Making
Certificate for Introduction to Securities & Investment

Certificate in Finance, Risk & Decision Making (A/S Level equivalent)

Money, Economies & Uncertainty
Investment Decision Making, Accounting & Governance
Certificate in Finance, Risk & Decision Making



Money, Economies & Uncertainty

Learning Objective
This unit provides an overview of all areas of investment and the role of financial services in the UK

Syllabus Summary
The nature of money Concept of fiat money and that fiat money has no intrinsic value, how money is created in a modern financial system and the relationship between money supply and the erosion of wealth.
The economy How the price mechanism allocates scarce resources between competing users and how that pricing mechanism can sometimes break down; awareness of the need for savings to be mobilised for investment and the intermediary role that financial services play in that process.
Governments and the economy The role of governments – not just as regulators but as active participants in economies.
The international dimension A system of trade and exchange is necessary to enable the benefits of division and specialisation of labour to be realised and distinguish comparative advantage from relative advantage.
Analysing and interpreting data Basic techniques for the analysis and interpretation of data and applying the knowledge gained to data in spreadsheets.
Risk and uncertainty The impact of risk and uncertainty on investment appraisal, basic forecasting techniques and calculating basic and combined probabilities.

Assessment
  • Written response: short answer and extended responses based on an unseen case study and essay questions covering the unit syllabus
  • 1 hour 45 minute examination
  • 80 marks
  • 50% of Cert FRD / 25% of Diploma FRD
  • Externally assessed
  • Available in May
Course Duration
60 guided learning hours


View the factsheet





Investment Decision Making, Accounting & Governance

Learning Objective
This unit consolidates learning from unit 1 and requires students to apply their acquired knowledge at the micro level, in a business context. It explores the structure of a company and the implications of limited liability for risk appetite. Students will learn to:
  • comprehend the difference between assets, profit and cash-flow
  • assess and compare different sets of accounts
  • appraise investment proposals using payback and discounted cash-flow techniques
  • evaluate the social and ethical aspects of financial engineering and corporate governance
  • assess the various remedies available to governments

Syllabus Summary
Incorporation, limited liability and the principles of accounting The separate roles of owners and managers of incorporated businesses and the systems of monitoring and control required by this separation, the advantages and disadvantages of incorporation and analysis of company accounts.
Balance sheet and income statement Components of a balance sheet statement and an income statement.
Analysing accounts cash-flow, working capital and liquidity Calculating a cash-flow statement for a business, including calculating 12 different profitability, liquidity and shareholder ratios.
The sources and cost of funds Characteristics of equity and debt, the cost of equity and the cost of debt and calculating the weighted average cost of capital of a company.
Return on investment and opportunity cost Why investors measure returns on their investments and investment appraisal techniques, including discounted cashflow methods.
Valuation of securities Basic techniques for the valuation of securities, including modern portfolio theory.
Derivatives, asset-backed securities; ethical issues of financial engineering The role of derivatives in financial markets and the way that financial engineering creates structured, or packaged products tailored to the specific needs of certain classes of investors. Identifying risks that are associated with these types of investment products.
Ethics and governance The importance of ethics in financial systems and that ethics can never wholly be replaced by government regulation.

Assessment
  • Written response: short answer and extended responses based on unseen set of accounts and essay questions covering the unit syllabus
  • 1 hour 45 minute examination
  • 80 marks
  • 50% of Cert FRD / 25% of Diploma FRD
  • Externally assessed
  • Available in May
Course Duration
60 guided learning hours


 View the factsheet