Chartered Institute of Management Accountants (CIMA) CGMA Competency Framework and Professional Skills Syllabus

What is an ERP system and why is it relevant to management accountants?

Enterprise Resource Planning — integrated software that unifies core business processes (finance, HR, supply chain, sales) into one database, giving real-time, consistent data for reporting, control and decision-making.

Define 'Internal control and risk' as a CGMA competency.

The ability to identify, evaluate and manage risk and to design and operate effective internal controls that safeguard assets, ensure reliable reporting and support compliance and objectives.

List the five components of the COSO Internal Control – Integrated Framework.

1) Control environment, 2) Risk assessment, 3) Control activities, 4) Information and communication, 5) Monitoring activities.

State the basic risk-scoring formula used in risk assessment.

$\text{Risk score} = \text{Likelihood (probability)} \times \text{Impact (consequence)}$

Name the four generic risk responses (the '4 T's').

Treat (reduce/control), Tolerate (accept), Transfer (e.g. insure/outsource), and Terminate (avoid the activity).

Distinguish inherent risk from residual risk.

Inherent risk is the level of risk before any controls or mitigation. Residual risk is the level remaining after controls/responses have been applied.

What is the difference between preventive, detective and corrective controls?

Preventive controls stop errors/fraud before they occur (e.g. authorisation limits); detective controls identify problems that have occurred (e.g. reconciliations); corrective controls fix issues and restore normal operations (e.g. backups).

What is segregation of duties and why is it a key control?

Splitting authorisation, recording, custody and reconciliation of transactions among different people so no single individual controls a whole process — reducing the opportunity for error and fraud.

What is 'risk appetite'?

The amount and type of risk an organisation is willing to accept in pursuit of its strategic objectives, set by the board and used to guide decision-making.

Define 'Strategy and market environment' as a CGMA competency.

The ability to understand the external environment and competitive landscape and to contribute to setting, evaluating and executing organisational strategy to create sustainable value.

What does a PESTEL analysis examine?

Political, Economic, Social, Technological, Environmental and Legal factors in the macro (external) environment.

Name the five forces in Porter's Five Forces model.

1) Threat of new entrants, 2) Bargaining power of suppliers, 3) Bargaining power of buyers, 4) Threat of substitutes, 5) Competitive rivalry among existing firms.

What are Porter's three generic competitive strategies?

Cost leadership, Differentiation, and Focus (cost focus or differentiation focus on a narrow segment).

What do the components of a SWOT analysis represent, and how do they map to internal/external?

Strengths and Weaknesses are internal factors; Opportunities and Threats are external factors. Used to match capabilities to the environment.

In the BCG matrix, what are the four categories and their axes?

Axes: market growth (vertical) vs relative market share (horizontal). Categories: Stars (high growth, high share), Cash Cows (low growth, high share), Question Marks (high growth, low share), Dogs (low growth, low share).

What does Ansoff's matrix classify, and name its four strategies.

It classifies growth strategies by product (existing/new) and market (existing/new): Market Penetration, Product Development, Market Development, and Diversification.

Define 'Process and project management' as a CGMA competency.

The ability to design, improve and manage business processes and projects to deliver objectives efficiently — covering process improvement, change management, and project planning, execution and control.

What are the constraints of the classic 'project management triangle'?

Scope, Time (schedule), and Cost (budget) — with Quality often shown at the centre. Changing one constraint affects the others.

What is the critical path in project management?

The longest sequence of dependent activities through a project network that determines the minimum project duration; any delay to a critical-path activity delays the whole project (these activities have zero float/slack).

Define 'float' (slack) in network analysis.

The amount of time an activity can be delayed without delaying the project's overall completion date. Total float = latest finish − earliest finish − activity duration.

What are the five process groups in project management (PMBOK)?

Initiating, Planning, Executing, Monitoring & Controlling, and Closing.

What is Business Process Re-engineering (BPR)?

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in performance measures such as cost, quality, service and speed — rather than incremental change.

Compare Lean and Six Sigma.

Lean focuses on eliminating waste (non-value-adding activities) to improve flow; Six Sigma focuses on reducing process variation and defects (toward 3.4 defects per million). Combined as 'Lean Six Sigma' they target both speed and quality.

What are the phases of the Six Sigma DMAIC improvement cycle?

Define, Measure, Analyse, Improve, Control.

Define 'Regulatory and macroeconomic context' as a CGMA competency.

The ability to understand and apply the legal, regulatory, governance and macroeconomic environment in which the organisation operates, ensuring compliance and informed decision-making.

What does GDP measure, and name its expenditure components.

Gross Domestic Product measures the total value of goods and services produced in an economy. By expenditure: $GDP = C + I + G + (X - M)$ — consumption, investment, government spending, and net exports (exports minus imports).

Define inflation and name two main types by cause.

Inflation is a sustained rise in the general price level (fall in money's purchasing power). Types: demand-pull (excess aggregate demand) and cost-push (rising input costs).

Distinguish fiscal policy from monetary policy.

Fiscal policy uses government spending and taxation to influence the economy (set by government/Treasury). Monetary policy uses interest rates and money supply (set by the central bank, e.g. the Bank of England).

What is the role of corporate governance, and what UK code sets its principles?

Corporate governance is the system of rules, practices and processes by which a company is directed and controlled, balancing stakeholder interests. In the UK the principles are set by the UK Corporate Governance Code (FRC), on a 'comply or explain' basis.

Define 'Influence and communication' as a CGMA people-skills competency.

The ability to communicate ideas clearly and persuasively, build credibility, and influence others to gain support and drive decisions and action across the organisation.

In the communication process model, name the key elements.

Sender, encoding, message, channel/medium, decoding, receiver, feedback, and noise (interference that distorts the message).

Distinguish 'push' from 'pull' communication and influence.

Push (assertive) involves telling, directing and presenting logic to persuade; pull (collaborative) involves listening, asking questions and drawing others in to build shared commitment.

What is active listening?

Fully concentrating on, understanding and responding to a speaker — using techniques such as paraphrasing, clarifying questions, summarising and non-verbal acknowledgement — to ensure accurate understanding and build trust.

Define 'Collaboration and partnering' as a CGMA people-skills competency.

The ability to work effectively with others across functions and organisations, building relationships and partnerships (e.g. as a business partner) to achieve shared goals and deliver value.

What is 'business partnering' in finance?

Finance professionals working alongside operational and senior management as trusted advisers — providing analysis, insight and challenge to support and influence decision-making, rather than just reporting numbers.

Name the stages of Tuckman's model of team development.

Forming, Storming, Norming, Performing, and (later addition) Adjourning.

Compare the five conflict-handling styles in the Thomas-Kilmann model.

Based on assertiveness vs cooperativeness: Competing (assertive, uncooperative), Accommodating (unassertive, cooperative), Avoiding (unassertive, uncooperative), Collaborating (assertive, cooperative — win/win), and Compromising (intermediate).

Define 'Leadership skills' as a CGMA knowledge area.

The ability to lead and inspire people and the organisation — setting vision and direction, driving change, developing talent, managing performance and embedding ethical, high-performing culture.

Distinguish transactional from transformational leadership.

Transactional leadership motivates through rewards and penalties for performance against set tasks (exchange-based). Transformational leadership inspires and motivates followers around a shared vision to achieve change and exceed expectations.

What are the elements of emotional intelligence in Goleman's model?

Self-awareness, self-regulation (self-management), motivation, empathy (social awareness), and social skills (relationship management).

What are the four characteristics of Kotter's 8-step change model (first three steps)?

Kotter's first steps: 1) Create a sense of urgency, 2) Build a guiding coalition, 3) Form a strategic vision and initiatives — leading change by building momentum before embedding it.

What is the difference between leadership and management?

Management focuses on planning, organising, controlling and 'doing things right' to deliver stability; leadership focuses on setting direction, aligning and inspiring people and 'doing the right things' to drive change. Both are needed.

What fundamental ethical principles underpin the CGMA (CIMA Code of Ethics)?

Integrity, Objectivity, Professional competence and due care, Confidentiality, and Professional behaviour.

In CIMA's ethical conflict resolution, what are the categories of threats to the fundamental principles?

Self-interest, Self-review, Advocacy, Familiarity, and Intimidation threats — which are addressed by applying safeguards.

What is the Balanced Scorecard, and name its four perspectives?

A strategic performance management tool linking measures to strategy. Perspectives: Financial, Customer, Internal Business Process, and Learning & Growth.

What does a stakeholder mapping (Mendelow's matrix) classify, and along which axes?

It classifies stakeholders by Power (high/low) and Interest (high/low): Key Players (manage closely), Keep Satisfied (high power, low interest), Keep Informed (low power, high interest), and Minimal Effort (monitor).

State the payback period concept and its main drawback.

Payback period is the time required for cumulative cash inflows to recover the initial investment. Main drawback: it ignores the time value of money and cash flows occurring after the payback point.

What is the value chain (Porter), and what are its two activity categories?

A framework analysing the activities through which a firm creates value. Primary activities (inbound logistics, operations, outbound logistics, marketing & sales, service) and support activities (firm infrastructure, HR management, technology development, procurement); value added above cost = margin.