Creating and Maintaining Business Value

Subdomains

Click on the subdomain titles to examine the range of skills and concepts a student can expect to demonstrate for assessment of this Domain:

• Evaluating Economics of Management Decisions
• Managing Capital and Financial Assets
• Managing Enterprise Risk and Continuity
• Managing Internal Cost and Controlling Finances

Evaluating Economics of Management Decisions

• The graduate analyzes risks and values, and uses a variety of decision analysis tools and decision theory to evaluate alternatives during decision making processes.
• The graduate utilizes mathematical programming to identify optimum or overall-best decision alternatives.
• The graduate evaluates decision methods and develops strategies for organizational decision processes.

Managing Capital and Financial Assets

• The graduate uses capital budgeting to analyze business opportunities and applies risk mitigation concepts to capital budgeting situations.
• The graduate considers risk and the potential value-added for all stakeholders when balancing risk and return and the tradeoffs between competing financial goals.
• The graduate considers the costs and the advantages and disadvantages of equity financing versus debt alternatives while designing the capital structure that balances risk and reward.
• The graduate demonstrates the use of working capital management and working capital acquisition concepts to balance the related trade-off between profitability and risk.

Managing Enterprise Risk and Continuity

• The graduate analyzes enterprise continuity plans and the continuity planning process to ensure the inclusion of essential elements, processes and stakeholder roles.
• The graduate applies international standards to company operations, and assesses and recommends strategies for maintaining organizational stability and continuity in the global marketplace.
• The graduate develops and analyzes organizational contingency plans for responding to sudden and rapid environmental changes.
• The graduate evaluates internal and external risks and recommends risk mitigation strategies and techniques to an organization.
• The graduate develops and assesses enterprise risk management programs for organizations, and incorporates industry best practices in risk management processes and programs.
• The graduate uses risk control and risk optimization analytics and strategies to maximize returns relative to risk for organizations.

Managing Internal Cost and Controlling Finances

• The graduate analyzes and benchmarks financial statements, evaluates company performance, identifies areas for improvement, and makes recommendations for needed action and methods of operation.
• The graduate utilizes economic cost concepts and activity-based costing (ABC) data to determine and to drive cost-based decisions.
• The graduate uses cost-volume-profit concepts and applies various analytical tools, such as customer profitability analyses, to improve company profit potential.
• The graduate evaluates corporate systems, and recommends measures to provide adequate internal controls.
• The graduate utilizes budgets and a variety of pro-forma statements for planning and control purposes including analyzing cash flows to assure adequacy of funds for capitalizing on business opportunities.