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

24 sample cards from the CGMA Competency Framework and Professional Skills deck

Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.

1. 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.

2. 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).

3. 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).

4. 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).

5. 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.

6. 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.

7. In the communication process model, name the key elements.

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

8. 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.

9. 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.

10. 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.

11. 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.

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

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

13. 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).

14. 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.

15. 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.

16. 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).

17. 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.

18. 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.

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

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

20. 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.

21. 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.

22. 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).

23. 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.

24. 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.

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