ACCA SBL flashcards
ACCA SBL · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Mendelow stakeholder matrix
- A grid plotting stakeholder power against interest to set engagement strategy: manage closely, keep satisfied, keep informed, or minimal effort.
- Agency problem
- The risk that managers (agents) act in their own interest rather than shareholders' (principals), mitigated by monitoring, incentives and independent boards.
- Ansoff matrix
- A growth grid of existing/new products and markets yielding market penetration, product development, market development and diversification, with rising risk.
- Porter generic strategies
- Three routes to competitive advantage: cost leadership, differentiation and focus; lacking a clear route leaves a firm 'stuck in the middle'.
- Stakeholder salience
- Priority given to a stakeholder based on power, legitimacy and urgency; more attributes present means higher salience and attention.
- Risk appetite versus tolerance
- Risk appetite is the amount and type of risk an organisation will accept to pursue objectives; tolerance is the acceptable variation around that appetite.
- Fraud triangle
- Three conditions enabling fraud: pressure or incentive, opportunity, and rationalisation; removing opportunity is the most controllable element.
- Segregation of duties
- Splitting authorisation, custody, recording and reconciliation of a transaction among different people so no single person controls the whole cycle.
- Three lines model
- Management owns and manages risk (first line), risk and compliance monitor it (second line), internal audit gives independent assurance (third line).
- TARA risk responses
- Four treatment options: Transfer (e.g. insurance), Avoid (exit the activity), Reduce (add controls) and Accept (tolerate within appetite).
- ROCE
- Return on capital employed equals operating profit divided by capital employed, expressed as a percentage; it measures profit generated per unit of long-term capital.
- Quick ratio
- Current assets less inventory, divided by current liabilities; it tests short-term liquidity excluding the least liquid current asset.
- Gearing ratio
- Debt divided by debt plus equity (or debt divided by equity depending on convention); higher gearing raises financial risk and interest sensitivity.
- Interest cover
- Operating profit divided by finance costs; a falling ratio signals reduced ability to service debt from operating earnings.
- DuPont decomposition
- ROCE expressed as operating margin multiplied by asset turnover, showing whether returns come from profitability or from efficient asset use.
- NPV decision rule
- Discount future cash flows at the cost of capital; accept a project if net present value is positive, as it adds shareholder value.
- IRR decision rule
- The internal rate of return is the discount rate giving zero NPV; accept a project if IRR exceeds the cost of capital.
- Balanced scorecard
- A performance framework using financial, customer, internal process, and learning and growth perspectives to link measures to strategy.
- Big data five Vs
- Volume, velocity, variety, veracity and value; together they describe the scale, speed, diversity, reliability and usefulness of datasets.
- Analytics maturity ladder
- Progression from descriptive (what happened) to diagnostic (why), predictive (what will happen) and prescriptive (what should be done).
- Cloud service models
- IaaS supplies infrastructure, PaaS supplies development platforms, SaaS supplies ready applications; responsibility shifts to the provider as you move up.
- Ransomware
- Malware that encrypts data and demands payment; defence relies on offline backups, patching, least-privilege access and user awareness.
- Phishing
- Deceptive messages that trick users into revealing credentials or clicking malicious links; filtering, multi-factor authentication and training reduce risk.
- Disruptive innovation
- Innovation starting in low-end or new markets that improves until it displaces established competitors, unlike sustaining innovation for existing customers.
- Diffusion of innovation
- Adoption follows innovators, early adopters, early majority, late majority and laggards; a chasm separates early adopters from the majority.
- Data minimisation
- A data protection principle requiring collection of only data necessary for a stated, lawful purpose, retained no longer than needed.
- Professional scepticism
- A questioning mindset that challenges information and evidence rather than accepting it, especially where the source has an interest in the outcome.
- Pyramid principle
- A communication structure presenting the conclusion first, then supporting arguments, then detail, suited to time-pressed executive audiences.
- 'So what?' test
- A check that every point links to a consequence and a recommended action relevant to the decision-maker's objective.
- Balanced ethical communication
- Reporting both favourable and unfavourable information accurately, without misleading omission, so readers can form an unbiased view.
- SMART recommendation
- A recommendation stating a specific action, measurable impact, accountable owner, realistic basis and a clear timeframe for implementation.
- Conflict of interest
- A situation where personal or other interests could bias professional judgement; it must be disclosed and managed to preserve independence.