CICPA Corporate Strategy & Risk Management - independent subject foundations cheat sheet

A business model connects customer value, delivery, resources, costs and revenue; its assumptions require evidence.

Porter's generic strategies require a clear basis for competitive advantage.

Expected value weights outcomes by probability but ignores risk attitude.

Suitability, acceptability and feasibility structure strategy evaluation.

Implementation fails when culture, structure and resources are misaligned.

Turnover uses average employees; absenteeism uses possible working days.

Job description = duties; person specification = candidate attributes.

Herzberg separates hygiene factors from motivators; pay alone is hygiene.

Leadership style should be matched to task, workforce skill and time pressure.

Redundancy and dismissal have different legal and motivational implications.

Capacity utilisation = actual output ÷ maximum output × 100.

Break-even = fixed costs ÷ contribution per unit; margin of safety = current sales − break-even.

JIT cuts holding costs but raises supply-chain vulnerability.

TQM is preventive and company-wide; quality control is inspection-based.

Critical path is the longest route through the network and sets project duration.

Identify the engagement purpose, criteria and responsibilities.

An audit opinion is not an absolute guarantee.

Objectivity and ethics require analysis of actual threats and responsibilities.

Risk assessment links procedures to reasons a material error could arise.

Local legal powers and professional adoption are not inferred from international labels.

Define incremental cash flows and the valuation date.

Discount rate, cash-flow timing and risk assumptions must be consistent.

NPV, IRR, payback and accounting return measure different things.

Expected value does not eliminate downside or estimation uncertainty.

Supplied model rates are not current market or tax facts.