Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CIMA E1 > 2 - Activities of Finance Professionals > Flashcards

2 - Activities of Finance Professionals Flashcards

1
Q

Stages of info to impact diagram

A
  1. Assemble info
  2. Analyse for insight
  3. Advise to influence
  4. Apply for impact
  5. Acumen (ensures continuing process)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

As we move thru stages of info to impact diagram, how does role of finance change?

A

Finance works in isolation –> work with others

i.e. accounting & governance –> guidance& management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Assembling info involves

A

collating, cleaning and connecting data into assembled info = reporting role

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Analysing for insights involves

A

Analysing financial and non financial info to draw out patterns and provide relevant insights = questioning role

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Advising to influence =

A

communicating insights to users and contributing to an objective, responsible perspective to influence their decisions = developing solutions role.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Applying for impact =

A

supporting and guiding actions to help org achieve the desired impact = deploying solutions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How does acumen help?

A

Apply it to assemble valuable info and inform consideration of subsequent proposals. Acumen is what connects the different activities together.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Because of tech, finance have to focus more on which of info to impact activities?

A

Less on accounting & gov i.e. info & insights

More on guidance & mgmt i.e. influence & impact

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Define data

A

raw, unprocessed facts and figures.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

define info

A

Data that has been processed in a way that makes it meaningful for planning or decisions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Financial data =

A

standard metrics which are well tracked and understood by org

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Enterprise data =

A

financial data + broad operational & transactional data that bolsters analysis & forecasting - info bis generates internally outside standard financial data.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Big data =

A

enterprise data + new types of internal and external data which can be unstructured and large in volume but could yield new bis insights.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Why do we need to consider costs of assembling info?

A

Need to determine if value of info > costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Quantitative vs qualitative info

A 
Quant = can be given a value, objective
Qual = cannot be given a value, subjective
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

ACCURATE mnemonic for good qualities of useful info

A 
Accurate
Complete
Cost effective
Understandable (needs of end user)
Relevant (omit irrelevant info)
Accessible (choice of medium)
Timely
Easy to use
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Informal data collection

A

Goes on all the time e.g. by employees learning from world around them in newspapers, news or meetings with bis associates.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Formal data collection

A

Org needs specific data to fulfil a particular purpose so goes away and collects it.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

IS informal data collection mostly driven by external or internal data sources?

A

EXTERNAL

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Environmental scanning =

A

Process of gathering external info from a wide range of sources.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

IS market research external or internal data source?

A

External - collect from outside org even if carried ou by org itself.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Examples of informal and formal INTERNAL data sources

A

Informal - word of mouth

Formal - email or reports

23
Q

5 internal sources of data

A
  1. Accounting records
  2. HR records
  3. Machine logs
  4. Timesheets
  5. Formally or informally between staff
24
Q

Data cleansing =

A

Identify inaccurate or irrelevant data, modify or delete as appropriate.

25
Q

4 methods data cleansing

A
  1. Cross-checking raw data with validated data
  2. Manual checks by humans
  3. Automated batch processing or scripting processes
  4. Data wrangling - convert raw data from one form into another to use in diff system
26
Q

What does connected data mean?

A

It means each bit of data is interrelated to every other piece of data in some way, and to achieve this org needs to be data centric.

27
Q

5 stages of creating a data centric org

A
  1. Understand what data is relevant to bis model
  2. Assess existing data & systems
  3. Identify quick wins - use existing data to demonstrate valuable insights
  4. Formal data project - develop bis case
  5. Create and develop data culture
28
Q

2 egs of data connection tools

A
  1. Microsoft power BI

2. Tableau

29
Q

Data connection tools have the ability to… + 2 characteristics

A

connect vast data sources held in various locations & of diff data types. Usually cloud based & substantial processing power.

30
Q

4 key functions of data connection tool

A
  1. data integration - pre built connections to&raquo_space; systems
  2. Pre built starter kits
  3. user friendly functionality
  4. Mobile reporting
31
Q

Data analysis =

A

evaluating data by comparison against benchmarks to form some finding or conclusion.

32
Q

Insights =

A

More than reporting basic financial info - indications or drivers of value for an org.

33
Q

So how is data analysis diff to insights?

A

Insights deeper - identify drivers of value, not just reporting basic financial facts. 1 step further - explain WHY the org’s perf was as reported, what might happen in future etc.

34
Q

What are the 4 levels of data analysis for insight?

A
  1. Reporting - what happened?
  2. Analysis - why did it happen?
  3. Monitoring - what’s happening now?
  4. Prediction - what might happen in future?
35
Q

In 4 levels of data analysis diagram, as we move from levels what 2 things increase?

A

Business value low –> high

Complexity low –> high

36
Q

OLAP used for what level of data analysis?

A

Stage 2 Analysis. Online Analytical Processing allows users to analyse database information from multiple database systems at one time.

37
Q

Primary stakeholders =

A

anyone with a contractual relationship with org

38
Q

Secondary stakeholders =

A

still have an interest in the org, but no contract with them.

39
Q

Another way to classify stakeholders into what 3 groups + some egs?

A
  1. Internal = mgmt & emp
  2. Connected = shareholders, lenders, customers, suppliers
  3. External = community, competitors, gov
40
Q

How does internal/connected/external model relate to primary/secondary stakeholders?

A

Internal + connected = primary

External = secondary

41
Q

Mendelow’s model shows us what?

A

How stakeholders can be mapped onto a matrix based on how interested vs how powerful they are –> tells org how to communicate w stakeholder based on matrix position.

42
Q

Low interest + low power stakeholder

A

Minimal effort - don’t waste time on them

E.g. Causal labour

43
Q

High interest + low power stakeholder

A 
Keep informed (on big info)
e.g. core employees, small supplier
44
Q

Low interest + high power stakeholder

A

Keep satisfied - all good as long as satisfied, if not could disrupt strategy.
e.g. Gov

45
Q

High interest + high power stakeholder

A

Key players

e.g. key mgrs/emp/main suppliers

46
Q

How can org benefit from effectively managing stakeholder relationships? How can it measure this?

A

Make strategic gains

Measure level of satisfaction through combo of quant and qual measures.

47
Q

3 communication considerations (relating to stakeholders)

A
  1. Audience - who target audience & what are info needs?
  2. Frequency - how often receive comms?
  3. Format - how & where receive comms?
48
Q

Applying for impact role requires…

A

BUSINESS PARTNERING

49
Q

Business partnering =

A

finance embeds itself in org rather than acting as separate function. Provide support & guidance to other functions.

50
Q

Finance needs close bis partnership with 3 stakeholders = and which most important?

A
  1. IT function who capture data
  2. data scientists who analyse
  3. Bis leaders who turn insight into concrete action = most important
51
Q

3 skillset areas for bis partnering + corresponding skills

A
  1. Effective relationships = need empathy, good comm, prepared to challenge.
  2. Contribute insights into drivers = need passion, commercial curiosity, objectivity.
  3. Ability to integrate, apply & comm = need bis understanding, analytical & accounting skills
52
Q

5 requirements finance need to support bis leaders in achieving desired impact of decisions.

A
  1. Understand data sources & analytical techniques
  2. Understand bis ops
  3. Comm skills
  4. Good working relationships
  5. Leadership skills
53
Q

5 ways finance connects various activities of an org

A
  1. Bis partnering
  2. Budgeting for each bis area linked via master budget
  3. Provide insights
  4. Implement decisions that impact&raquo_space; areas
  5. Work with those who develop info systems impacting&raquo_space; bis areas

CIMA E1 (12 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions