Standard: Understands business’s responsibility to know, abide by, and enforce laws and regulations that affect business operations and transactions
Performance Element: Understand government regulations pertaining to the finance industry to protect the company wellbeing.
Performance Indicators:
Discuss legal considerations in the finance industry (BL:133) (SP)
Discuss the effect of tax laws and regulations on financial transactions (BL:134) (SP)
Performance Element: Understand tax laws and regulations to adhere to government requirements.
Performance Indicators:
Explain the nature of tax regulations on business (BL:009) (ON)
Explain the nature of businesses’ reporting requirements (BL:010) (ON)
Develop strategies for legal/government compliance (BL:011) (ON)
Performance Element: Acquire a foundational knowledge of compliance to understand its nature and scope.
Performance Indicators:
Discuss the nature and scope of compliance in the finance industry (BL:148) (SP)
Describe the use of technology in compliance (BL:149) (SP)
Performance Element: Implement compliance measures in the securities and investments industry to adhere to regulatory requirements.
Performance Indicators:
Discuss ethical considerations in the securities and investments industry (BL:104) (SP)
Discuss laws and regulations governing the securities and investments industry (BL:105) (SP)
Comply with securities and investments regulations (BL:151) (SP)
Performance Element: Implement compliance measures in corporate finance to adhere to regulatory requirements.
Performance Indicators:
Comply with financial reporting and internal control laws and regulations in corporate finance (BL:155) (SP)
Comply with regulations and laws governing ownership change transactions (BL:099) (MN)
Comply with U.S. Securities and Exchange Commission Division of Corporation Finance requirements (BL:100) (MN)
Performance Element: Develop a compliance program to protect the company wellbeing.
Performance Indicators:
Explain the elements of a compliance program (BL:130) (MN)
Discuss functional areas of a compliance audit (BL:131) (MN)
Develop a compliance program (BL:132) (MN)
Measure compliance program effectiveness (BL:147) (MN)
Standard: Understands the concepts, strategies, and systems used to obtain and convey ideas and information
Performance Element: Write internal and external business correspondence to convey and obtain information effectively.
Performance Indicators:
Initiate correspondence with customers regarding market activity (CO:207) (SP)
Develop communication plans based on customer preferences (CO:208) (SP)
Update the client on events/changes impacting portfolio (CO:209) (SP)
Standard: Understands the techniques and strategies used to foster positive, ongoing relationships with customers
Performance Element: Foster positive relationships with customers to enhance company image.
Performance Indicators:
Follow up on the completion of the transaction (CR:034) (CS)
Conduct securities and investments lectures, seminars, and forums to attract potential clients (CR:035) (SP)
Standard: Understands techniques, strategies, and systems used to foster self-understanding and enhance relationships with others
Performance Element: Manage internal and external business relationships to foster positive interactions.
Performance Indicators:
Explain the impact of business customs and practices on global trade (EI:082) (SP)
Describe the nature of business customs and practices in the North American market (EI:083) (SP)
Explain the nature of business customs and practices in Western Europe (EI:084) (SP)
Explain the nature of business customs and practices in Eastern Europe (EI:117) (SP)
Explain the nature of business customs and practices in Latin America (EI:085) (SP)
Describe the nature of business customs and practices in the Pacific Rim (EI:086) (SP)
Discuss the nature of business customs and practices in the Middle East (EI:087) (SP)
Explain the nature of business customs and practices in South Asia (EI:118) (SP)
Describe the nature of business customs and practices in Northern Africa (EI:119) (SP)
Discuss the nature of business customs and practices in Sub-Saharan Africa (EI:120) (SP)
Standard: Understands the concepts, processes, and skills associated with identifying new ideas, opportunities, and methods and with creating or starting a new project or venture
Performance Element: Determine needed resources for a new business venture to contribute to its start-up viability.
Performance Indicators:
Describe processes used to acquire adequate financial resources for venture creation/start-up (EN:015) (ON)
Select sources to finance venture creation/start-up (EN:016) (ON)
Describe considerations in selecting capital resources (EN:019) (ON)
Identify capital resources needed for the venture (EN:020) (ON)
Assess the costs/benefits associated with resources (EN:021) (ON)
Performance Element: Actualize new business venture to generate profit and/or meet objectives.
Performance Indicators:
Evaluate risk-taking opportunities (EN:024) (ON)
Standard: Understands tools, strategies, and systems used to maintain, monitor, control, and plan the use of financial resources
Performance Element: Understand the fundamental principles of money needed to make financial exchanges.
Performance Indicators:
Explain the time value of money (FI:062) (CS)
Explain the purposes and importance of credit (FI:002, LAP-FI-002) (CS)
Performance Element: Manage personal finances to achieve financial goals.
Performance Indicators:
Discuss the nature of retirement planning (FI:569) (CS)
Explain the nature of estate planning (FI:572) (CS)
Performance Element: Use investment strategies to ensure financial well-being.
Performance Indicators:
Explain types of investments (FI:077, LAP-FI-077) (CS)
Establish investment goals and objectives (FI:079) (MN)
Performance Element: Implement accounting procedures to track money flow and to determine financial status.
Performance Indicators:
Describe the nature of cash flow statements (FI:091, LAP-FI-091) (SP)
Explain the nature of balance sheets (FI:093, LAP-FI-093) (SP)
Describe the nature of income statements (FI:094, LAP-FI-094) (SP)
Performance Element: Acquire a foundational knowledge of finance to understand its nature and scope.
Performance Indicators:
Explain the role of finance in business (FI:354, LAP-FI-354) (CS)
Discuss the role of ethics in finance (FI:355, LAP-FI-355) (SP)
Explain legal considerations for finance (FI:356) (SP)
Performance Element: Implement financial skills to obtain business credit and to control its use.
Performance Indicators:
Explain the purposes and importance of obtaining business credit (FI:023) (ON)
Determine financing needed for business operations (FI:043) (ON)
Identify risks associated with obtaining business credit (FI:041) (ON)
Explain sources of financial assistance (FI:031) (ON)
Explain loan evaluation criteria used by lending institutions (FI:034) (ON)
Performance Element: Understand financial markets to recognize their importance in business.
Performance Indicators:
Describe the relationship between economic conditions and financial markets (FI:574) (SP)
Performance Element: Utilize sources of securities information to make informed financial decisions.
Performance Indicators:
Describe sources of securities information (FI:274) (CS)
Interpret securities table (FI:275) (SP)
Explain the nature of statements of changes in equity (FI:630) (SP)
Performance Element: Manage financial resources to ensure solvency.
Performance Indicators:
Explain the nature of operating budgets (FI:098) (SU)
Describe the nature of cost-benefit analysis (FI:357, LAP-FI-357) (MN)
Determine relationships among total revenue, marginal revenue, output, and profit (FI:358) (MN)
Forecast sales (FI:096) (MN)
Calculate financial ratios (FI:097) (MN)
Interpret financial statements (FI:102) (MN)
Calculate the time value of money (FI:238) (SP)
Describe types of financial statement analysis (e.g., ratio analysis, trend analysis) (FI:334) (MN)
Discuss limitations of using financial statements to assess business performance (FI:655) (MN)
Spot problems in/issues with financial statements (FI:335) (MN)
Performance Element: Explore the fundamentals of valuation to make appropriate financial decisions for the company.
Performance Indicators:
Explain valuation models used in finance (FI:656) (MN)
Performance Element: Use debt and equity capital to raise funds for business growth.
Performance Indicators:
Describe the financial needs of a business at different stages of its development (FI:339) (MN)
Discuss factors to consider in choosing between debt and equity capital (FI:340) (MN)
Explain the significance of a firm’s capital structure (FI:341) (MN)
Performance Element: Understand fundamental financial concepts to appropriately manage business finances.
Performance Indicators:
Discuss the nature of depreciation (FI:345) (SP)
Describe the nature of cash flows (FI:359) (SP)
Discuss the nature of corporate bonds (FI:523) (SP)
Discuss the cost of corporate bonds (FI:524) (SP)
Discuss the issuance of stock from a corporation (FI:526) (SP)
Discuss the cost of common stock (FI:528) (SP)
Discuss the nature of stock options (FI:729) (SP)
Discuss the nature of Initial Public Offerings (FI:730) (SP)
Performance Element: Calculate business ratios to evaluate company performance.
Performance Indicators:
Determine business liquidity (FI:551) (MN)
Calculate activity/efficiency ratios (FI:552) (MN)
Calculate debt/leverage ratios (FI:553) (MN)
Calculate business profitability (FI:554) (MN)
Calculate market ratios (FI:555) (MN)
Discuss the use of benchmarks when analyzing ratios (FI:556) (MN)
Describe bankruptcy prediction models (FI:557) (MN)
Establish expectations for key performance indicators (FI:731) (MN)
Calculate internal performance measures (e.g., product-line profitability, business unit profitability, return on investments) (FI:732) (MN)
Performance Element: Manage payment and collection systems to efficiently use cash.
Performance Indicators:
Describe components of a payment system (FI:733) (SP)
Describe components of a collection system (FI:734) (SP)
Manage bank accounts (e.g., scope of services, fee structures, system integration) (FI:735) (SP)
Manage banking relationships (FI:736) (MN)
Design payment system structure (FI:737) (MN)
Design collection system structure (FI:738) (MN)
Performance Element: Use short-term financial management to manage current assets and liabilities.
Performance Indicators:
Describe the nature of short-term financial management (FI:513) (SP)
Describe cash management procedures (FI:739) (SP)
Explain the use of cash budgets (FI:505) (SP)
Analyze the impact of accounts payable schedules on working capital (FI:633) (SP)
Analyze the impact of accounts receivable collection on working capital cycle (FI:637) (SP)
Discuss the impact of employee benefits on business financials (FI:639) (SP)
Discuss the impact of obsolescence on business expense (FI:641) (SP)
Prepare cash flow budgets/forecasts (FI:507) (SP)
Analyze cash budget/forecast variances (FI:508) (SP)
Evaluate leases (FI:740) (SP)
Analyze cash-flow patterns (FI:100) (MN)
Performance Element: Apply strategies to improve liquidity
Performance Indicators:
Develop policies to manage trade credit (FI:741) (SP)
Establish strategies to improve working capital (e.g., receivables management, payables management, inventory management) (FI:742) (MN)
Manage cash flow (FI:225) (MN)
Develop domestic tax strategies (FI:743) (MN)
Performance Element: Apply knowledge of capital markets to make suitable financial decisions.
Performance Indicators:
Explain the role of capital markets in business finance (FI:360) (SP)
Calculate stock-related values (e.g., the value of a constant growth stock, the expected value of future dividends, the expected rate of return, etc.) (FI:367) (SP)
Calculate bond-related values (e.g., the price of a bond given its yield to maturity, the coupon interest payment for a bond, the effects of interest rates on the price of a bond, etc.) (FI:236) (SP)
Determine the impact of business decisions on capital market prices (FI:744) (MN)
Performance Element: Explore capital budgeting to understand the capital expenditure decision-making process.
Performance Indicators:
Discuss the capital budgeting process (FI:491) (MN)
Performance Element: Analyze finances to assist in capital budgeting decision-making.
Performance Indicators:
Explain the nature of capital investment (FI:078) (SP)
Explain methods used to analyze capital investments (e.g., payback period, discounted break-even, net present value, accounting rate of return, internal rate of return, etc.) (FI:745) (SP)
Explain the impact of the cost of capital on capital investments (FI:746) (SP)
Calculate the cost of capital and its components (e.g., debt, equity) (FI:747) (SP)
Calculate cash flows associated with an investment (e.g., initial investment, operating cash inflows, operating cash outflows, terminal flows) (FI:492) (SP)
Use the time value of money to make business decisions (e.g., projects, investments, etc.) (FI:646) (SP)
Calculate capital investment return (e.g., payback, net present value, internal rate of return) (FI:748) (SP)
Prepare capital expenditure budget (FI:749) (MN)
Performance Element: Analyze proposed business projects to select acceptable project that enhances firm value
Performance Indicators:
Identify project benefits and costs (FI:750) (SP)
Establish parameters for project prioritization (FI:751) (MN)
Prepare project funding recommendation (FI:752) (MN)
Performance Element: Manage capital investments to realize expected benefits.
Performance Indicators:
Monitor project portfolio (FI:753) (SP)
Calculate return on investment (ROI) (FI:647) (MN)
Conduct post-investment audit (FI:754) (MN)
Manage project portfolio performance (FI:755) (MN)
Performance Element: Utilize capital market securities to secure financing for a company.
Performance Indicators:
Determine the cost of corporate bonds (FI:525) (MN)
Calculate the cost of preferred stock (FI:527) (MN)
Calculate the cost of common stock (FI:529) (MN)
Discuss ways to determine the best financing option for a company (FI:521) (MN)
Determine financing options for a company (FI:522) (MN)
Performance Element: Use long-term financial management to ensure solvency.
Performance Indicators:
Manage loans (FI:756) (SP)
Manage investment portfolio (FI:757) (SP)
Manage pension investment portfolio (FI:758) (SP)
Discuss factors influencing the short-term/long-term finance mix for an organization (FI:759) (MN)
Develop debt management strategy (FI:760) (MN)
Develop investment management strategy (FI:761) (MN)
Performance Element: Apply fundamental knowledge of dividends to assist in the distribution of dividends.
Performance Indicators:
Explain forms of dividends (FI:346) (SP)
Explain the nature of dividend reinvestment plans (DRIPs) (FI:530) (SP)
Describe the effect of a firm’s dividend decisions on its external financing requirements (FI:531) (MN)
Discuss the residual theory of dividends (FI:532) (MN)
Describe the impact of dividends on the value of the firm (FI:533) (MN)
Explain the nature of a dividend policy (FI:534) (MN)
Discuss factors to consider when deciding on the form of dividend distribution (FI:535) (MN)
Prepare capital plan (FI:762) (MN)
Performance Element: Apply strategies to manage international cash flow needs.
Performance Indicators:
Explain the nature of international corporate finance (e.g., managing transaction exposure, financing international trade, etc.) (FI:763) (MN)
Discuss international liquidity issues (FI:764) (MN)
Manage international cash flows (FI:765) (MN)
Manage international working capital levels (FI:766) (MN)
Develop international tax strategies (FI:767) (MN)
Performance Element: Understand financial planning in business finance to strive for business goals.
Performance Indicators:
Discuss the financial planning process (FI:502) (SP)
Discuss the nature of short-term (operating) financial plans (FI:503) (SP)
Describe the nature of long-term (strategic) financial plans (FI:504) (MN)
Describe the nature of tax planning (FI:776) (MN)
Performance Element: Understand the fundamentals of managerial accounting to aid in financial decision-making.
Performance Indicators:
Describe marginal analysis techniques and applications (FI:659) (SP)
Discuss the use of variance analysis in managerial accounting (FI:661) (SP)
Discuss the nature of cost accounting budgets (FI:662) (SP)
Differentiate among management accounting responsibility centers (i.e., cost, profit, investment, revenue) (FI:717) (SP)
Discuss the use of cost-volume-profit analysis (FI:718) (SP)
Discuss cost accounting systems (e.g., job costing, process costing, standard costing, activity-based costing [ABC]) (FI:719) (SP)
Distinguish between variable costing and absorption costing (FI:720) (SP)
Describe common management accounting performance measures (e.g., balanced scorecard, return on investment [ROI], customer profitability analysis, etc.) (FI:721) (SP)
Discuss the role of standard costing in the preparation and analysis of budgets (FI:722) (SP)
Describe the nature of flexible budgets (FI:723) (SP)
Explain the role of transfer pricing in managerial accounting (FI:724) (SP)
Explain the impact of business operational practices (e.g., total quality management [TQM], lean production, just-in-time [JIT], etc.) on managerial accounting (FI:725) (SP)
Performance Element: Conduct profit planning to forecast business profit.
Performance Indicators:
Perform budgetary cost analysis (e.g., direct cost, indirect cost, sunk cost, differential cost, etc.) (FI:768) (SP)
Perform responsibility center budgeting (i.e., cost, profit, investment, revenue) (FI:769) (SP)
Discuss the nature of pro forma statements (FI:509) (SP)
Set achievable financial goals (FI:770) (MN)
Develop a pro forma income statement (FI:510) (MN)
Prepare a pro forma balance sheet (FI:511) (MN)
Prepare a pro forma cash flow statement (FI:602) (MN)
Evaluate pro forma statements (FI:512) (MN)
Measure cost-effectiveness of aggregate expenditures (FI:771) (MN)
Performance Element: Utilize a company’s financial statements to analyze its financial situation.
Performance Indicators:
Discuss the analysis of a company’s financial situation using its financial statements (FI:546) (SP)
Discuss external forces affecting a company’s value (FI:547) (SP)
Explain how value is created for a company (FI:548) (SP)
Analyze a company’s financial situation (FI:549) (MN)
Calculate business value (FI:584) (MN)
Performance Element: Produce financial reports to communicate the results of business activity.
Performance Indicators:
Analyze transactions and accounts (e.g., purchase, sales, sales returns and allowances, uncollectible accounts, depreciation, debt) (FI:449) (SP)
Performance Element: Analyze ownership change transactions to aid in corporate growth and development.
Performance Indicators:
Compare mergers and acquisitions (FI:347) (SP)
Explain the nature of hostile takeovers (FI:536) (SP)
Explain divestiture concepts (e.g., spin-offs, split-ups, etc.) (FI:772) (SP)
Discuss issues that arise from mergers and acquisitions (FI:537) (MN)
Explain methods for evaluating potential merger/acquisition targets (FI:538) (MN)
Evaluate potential merger/acquisition targets (FI:539) (MN)
Describe the nature of corporate bankruptcy (FI:773) (MN)
Discuss the nature of restructurings (FI:540) (MN)
Determine the cost/benefit of restructuring (FI:774) (MN)
Performance Element: Implement suitable internal accounting controls to ensure the proper recording of financial transactions.
Performance Indicators:
Explain the purpose of internal accounting controls (FI:343, LAP-FI-343) (SP)
Maintain internal accounting controls (FI:480) (SP)
Manage the risk of errors and fraud (e.g., dual authorizations, automation, ACH adoption) (FI:775) (MN)
Assess the effectiveness of internal accounting controls (FI:707) (MN)
Develop internal accounting control procedures (FI:708) (MN)
Performance Element: Acquire fundamental knowledge of investment analysis and selection to make prudent investment decisions.
Performance Indicators:
Discuss types of investment objectives (FI:348) (SP)
Discuss the nature of investment risk (FI:349) (SP)
Describe the nature of diversification strategies (FI:350) (SP)
Explain factors to consider when selecting investments (FI:279) (SP)
Explain information that can be obtained from financial statements (FI:276) (SP)
Describe information that can be obtained from annual reports (FI:277) (SP)
Explain the nature of a mutual fund prospectus (FI:361) (SP)
Explain fundamental analysis used in making investment decisions (FI:280) (SP)
Describe the nature of technical analysis (FI:362) (SP)
Explain strategies for selecting investments (FI:283) (SP)
Describe portfolio management strategies (FI:664) (MN)
Explain metrics used to measure real-estate investment performance (FI:665) (MN)
Discuss performance measurements for venture capital (FI:363) (MN)
Discuss the free cash flow method of analyzing investments (FI:666) (MN)
Explain Modern Portfolio Theory (MPT) (FI:364) (MN)
Explain the Efficient Market Hypothesis (EMH) (FI:667) (MN)
Discuss the Capital Asset Pricing Model (CAPM) (FI:365) (MN)
Explain the Arbitrage Pricing Theory (APT) (FI:366) (MN)
Performance Element: Select investments to generate revenue for clients.
Performance Indicators:
Interpret financial ratios significant to investors (FI:281) (SP)
Calculate real-estate-related values (e.g., capitalization rate, gross rental multiplier, rate of return, etc.) (FI:668) (SP)
Choose investments based on security’s technical analysis (FI:669) (SP)
Assess securities’ fundamentals (FI:282) (SP)
Choose investments based on security’s fundamental analysis (FI:284) (SP)
Conduct qualitative and quantitative analysis of real-estate investments (FI:670) (SP)
Select real-estate investments based on qualitative and quantitative analysis (FI:671) (SP)
Evaluate portfolio performance (FI:672) (MN)
Standard: Understands tools, strategies, and systems needed to access, process, maintain, evaluate, and disseminate information to assist business decision-making
Performance Element: Utilize information-technology tools to manage and perform work responsibilities.
Performance Indicators:
Demonstrate advanced database applications (NF:124) (SP)
Performance Element: Acquire fundamental knowledge of technology used in the securities and investment industry to increase workplace efficiency and effectiveness.
Performance Indicators:
Discuss the impact of technology on securities and investments (NF:217) (CS)
Demonstrate proper use of securities and investments tools/technology (NF:218) (SP)
Performance Element: Monitor business data to stay abreast of trends and changes that could impact investment/portfolio decision-making.
Performance Indicators:
Obtain investment information from online sources (e.g., search engines, online databases, blogs, forums, listserves, website, social media) (NF:219) (CS)
Obtain investment information from publications (e.g., newspapers; magazines–current trends, regulations, business issues) (NF:220) (CS)
Track business environment changes that impact business financial results (e.g., stock market activity, economic developments, political development, competitive landscape changes, product issues, etc.) (NF:221) (CS)
Performance Element: Interpret research data into information for business decision-making.
Performance Indicators:
Interpret descriptive statistics for investment decision making (NF:222) (SP)
Interpret correlations for investment decision making (NF:223) (SP)
Translate findings into actionable investment recommendations (NF:224) (SP)
Performance Element: Utilize technology to perform business finance functions.
Performance Indicators:
Describe manual and computerized treasury systems (NF:240) (CS)
Describe the nature of Extensible Business Reporting Language (XBRL) (NF:241) (SP)
Use treasury systems (e.g., cash management, budgeting, forecasting) (NF:242) (SP)
Standard: Understands the processes and systems implemented to monitor, plan, and control the day-to-day activities required for continued business functioning
Performance Element: Implement operations activities to facilitate ongoing business processes.
Performance Indicators:
Discuss the functions of operations departments in securities and investments (OP:266) (SP)
Perform buy/sell functions to support trade execution (OP:267) (SP)
Post transaction data to accounting, compliance, and investment systems (OP:268) (SP)
Process and settle securities transactions in accordance with transaction instructions (OP:449) (SP)
Manage customer accounts (OP:450) (SP)
Calculate commissions (OP:270) (MN)
Analyze commission trends (OP:451) (MN)
Performance Element: Implement expense-control strategies to enhance a business’s financial wellbeing.
Performance Indicators:
Explain the nature of overhead/operating costs (OP:024, LAP-OP-024) (SP)
Conduct break-even analysis (OP:192) (MN)
Standard: Understands concepts, tools, and strategies used to explore, obtain, and develop in a business career
Performance Element: Understand careers in business finance to determine which role and responsibilities best match personal abilities and traits.
Performance Indicators:
Explain the role and responsibilities of financial management personnel (PD:215) (SP)
Describe the role and responsibilities of risk management personnel (PD:218) (SP)
Discuss the role and responsibilities of treasury management personnel (PD:219) (SP)
Performance Element: Explore licensing and certification in the field of business finance to enhance professional development.
Performance Indicators:
Explain professional designations in the field of business finance (e.g., CF, CFA, CCM, CTP, CFM, etc.) (PD:221) (SP)
Performance Element: Acquire knowledge of accounting standards to record, report, and evaluate financial data appropriately.
Performance Indicators:
Discuss the roles and responsibilities of accounting-standards-setting bodies (i.e., SEC, FASB, IASB, GASB) (PD:295) (SP)
Compare U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) (PD:296) (SP)
Performance Element: Acquire knowledge of corporate governance to be aware of the restraints imposed upon finance functions.
Performance Indicators:
Describe the components of a well-governed company (e.g., board of directors, reporting, transparency, internal and external audit functions) (PD:214) (SP)
Describe the impact of governance processes on decision-making and management functions (PD:303) (SP)
Performance Element: Understand careers in securities and investments to determine which role and responsibilities best match personal abilities and traits.
Performance Indicators:
Describe the role and responsibilities of individuals in the securities and investments industry (PD:231) (SP)
Performance Element: Explore licensing and certification in the securities and investments industry to enhance professional development.
Performance Indicators:
Describe licensing exams required to sell securities and other financial products (PD:232) (SP)
Explain professional designations in the securities and investments industry (e.g., CFS, CFA, BCAA, BCS, CSC, CFP, etc.) (PD:233) (SP)
Performance Element: Acquire knowledge of the securities and investments industry to understand the environment in which its services are offered.
Performance Indicators:
Discuss considerations in selecting a securities sales agent (PD:234) (SP)
Describe types of securities and investment firms (PD:235) (SP)
Describe how securities are traded (PD:236) (SP)
Explain the principal factors that affect securities markets (PD:237) (SP)
Explain causes of stock price fluctuations (PD:238) (SP)
Discuss the relationship between bond prices and yields (PD:239) (SP)
Discuss the role of investment banking in the primary marketplace (PD:240) (SP)
Discuss the nature of margin accounts (PD:241) (SP)
Explain the nature of short sales (PD:242) (SP)
Discuss the nature of market timing (PD:243) (SP)
Discuss the nature of international investment strategies (PD:244) (SP)
Performance Element: Acquire knowledge of securities products and benefits to support workplace activities.
Performance Indicators:
Describe the nature of mutual funds (PD:304) (SP)
Explain the rights of mutual fund shareholders (PD:305) (SP)
Discuss the nature of retirement investment plans (PD:306) (SP)
Explain the nature of education savings plans (PD:307) (SP)
Explain the nature of variable annuities (PD:342) (SP)
Explain the nature of stocks (PD:309) (SP)
Describe the rights of stockholders (PD:310) (SP)
Explain the nature of dividends (PD:311) (SP)
Discuss the nature of stock adjustments (PD:312) (SP)
Explain the nature of bonds (PD:313) (SP)
Discuss the nature of hedge funds (PD:314) (SP)
Describe the nature of commodities (PD:315) (SP)
Explain the nature of derivatives (PD:316) (SP)
Explain the nature of real estate investments (PD:317) (SP)
Explain the nature of venture capital (PD:318) (MN)
Standard: Understands tools, techniques, and systems that affect a business’s ability to plan, control, and organize an organization/department
Performance Element: Control an organization’s/department’s activities to encourage growth and development.
Performance Indicators:
Select and apply metrics for measuring organizational success (SM:074) (MN)
Performance Element: Identify potential business threats and opportunities to protect a business’s financial well-being.
Performance Indicators:
Explain the nature of risk management (SM:075, LAP-SM-075) (SP)
Identify speculative business risks (SM:077) (MN)
Standard: Understands tools, strategies, and systems needed to access, process, maintain, evaluate, and disseminate financial information to assist business decision-making
Performance Element: Utilize financial information technology tools to manage financial information and perform work responsibilities.
Performance Indicators:
Demonstrate financial analysis applications (FM:014) (SP)
Standard: Understands risk-management strategies and techniques used to minimize business loss
Performance Element: Acquire a foundational understanding of risk management to demonstrate knowledge of its nature and scope.
Performance Indicators:
Discuss record retention requirements applicable to correspondence and documentation (RM:074) (SP)
Explain the role of operations and compliance in risk management programs (RM:075) (SP)
Explain risks and risk management strategies specific to broker-dealers (RM:076) (SP)
Performance Element: Administer contracts to achieve organizational goals and minimize risk.
Performance Indicators:
Identify financial risk factors associated with business contracts (e.g., ratio requirements, restricted transactions, financial report filing requirements) (RM:077) (SP)
Monitor for breach of contract of non-performance related terms and conditions (RM:078) (SP)
Maintain contract compliance documentation (RM:079) (SP)
Evaluate alternative revenue arrangements (e.g., cost-plus pricing, contingent fees) (RM:080) (SP)
Establish monitoring programs for contract-specific revenue arrangements (RM:081) (SP)
Develop monitoring programs for restrictive contract requirements (RM:082) (SP)
Establish processes for timely reporting of required information (RM:083) (SP)
Comply with contract termination provisions (RM:084) (MN)
Develop plan to resolve breach of contract (e.g., renegotiation of terms, settlement, litigation) (RM:085) (MN)
Performance Element: Manage risk to protect a business’s well-being.
Performance Indicators:
Discuss the nature of enterprise risk management (ERM) (RM:062) (SP)
Discuss the relationship between risk management and business finance (RM:047) (SP)
Describe types of financial risks (e.g., interest rate risk, equity risk, commodity risk, etc.) (RM:086) (SP)
Discuss the nature of risk measurement (RM:048) (SP)
Discuss the relationship between risk and business objectives (RM:044) (MN)
Measure risk (RM:049) (MN)
Explain financial risk management techniques (e.g., derivatives, contracts, insurance, subrogation, indemnity agreements, self-insured retentions, captives, etc.) (RM:052) (MN)
Explain ways to assess risk (RM:059) (MN)
Evaluate the risks of derivatives (RM:054) (MN)
Discuss reasons to integrate risk management into business operations (RM:055) (MN)
Integrate risk management into business operations (RM:057) (MN)
Manage portfolio risk (RM:087) (MN)