Communication and Decision Support
What the exam tests
Communication and Decision Support tests whether you can turn analysis into a clear board decision. Marks come from structure, relevance, precision and a defensible recommendation.
Core rules
- Use a decision memo: issue, criteria, options, analysis, recommendation, risks, implementation and next steps.
- Lead with the answer; the board should see the recommendation in the first paragraph.
- Quantify the decision: NPV, funding gap, covenant headroom, sensitivity range. State assumptions.
- Match the audience: the board needs judgment and risk; operations needs actions and owners.
- Use tables for comparisons and one chart for a trend; label units and sources.
Worked example
A company forecasts ₦18m operating cash inflow but has ₦22m of obligations in the next quarter, a ₦4m shortfall. The finance director asks for a ₦20m facility. A better memo recommends negotiating a ₦10m committed facility, because ₦4m covers the gap and ₦6m provides headroom; the extra ₦10m adds commitment fees and covenant pressure. State the sensitivity: if collections fall 10%, the gap becomes ₦5.8m, still within the facility. Reasoning: the recommendation is tied to the cash forecast, not to the requested amount.
Traps
Writing a data dump with no recommendation; hiding the ask in an appendix; using jargon the board will not follow; omitting risks and assumptions; and recommending an option that conflicts with the analysis.