The Evolving Role of the COO in Modern Enterprises

Posted on July 2, 2025July 2, 2025 by Imarticus Learning

Have you ever wondered how the Chief Operating Officer (COO) became one of the most desired jobs in leading companies nowadays?

You are probably on the operations team or thinking of your next career step; you have at least Googled what a COO job is or how to be a Chief Operating Officer. You are not the only one. COO has turned into the control room of contemporary businesses as they grow, digitalise, and become more complex.

In this blog, let’s walk through how COO responsibilities have evolved beyond managing daily operations, why the role is no longer a behind-the-scenes one, and what it really takes to thrive in it today.

Why Modern Businesses Need a Different Kind of COO Responsibilities

The companies are continually forced to change due to AI, global competition, far-off teams, and challenging customers. What this implies is that operational leaders will no longer be able to execute but will have to reimagine.

The contemporary COO is not perceived to be the second-in-command. They tend to be a co-architect of business strategy.

So, what are COO responsibilities in this new environment?

A Chief Operating Officer (COO), also known as a Chief Operations Officer, oversees the day-to-day running of an organisation, including its people, resources, and logistics.

It is about quickly aligning internal processes to reality in the market. Those involve alignment of functions, talent management, real-time tracking of data, and use of technology to deliver results. Organisations desire their COOs to instigate innovation more than ever before than performance.

The Shift: Traditional vs Modern COO Responsibilities

Let’s explore how the COO role has changed with time.

Key Area	Old COO Role (Then)	Modern COO Role (Now)
Strategy & Vision	Used to just carry out what the CEO decided.	Now helps shape the big picture and drive change across the business.
Team & People	Mostly managed department heads and got updates.	Now mentors leaders, shapes culture, and builds future teams.
Processes & Systems	Watched performance numbers and improved where needed.	Builds agile systems that adapt fast and scale faster.
Technology & Tools	Handled IT like a support service.	Now drives digital change across operations and pushes automation.
Compliance & Risk	Checked the boxes to meet legal and company rules.	Spot risks early and plan to avoid breakdowns before they happen.
Supply Chain & Ops	Focused on buying and keeping things moving.	Builds strong networks that survive disruption and meet global needs.

What we can clearly see is this: COOs now shape strategy, lead transformation, and drive culture. It’s no longer about ticking boxes. It’s about enabling the CEO and empowering teams to make execution seamless.

What Are COO Roles and Responsibilities Today?

COO roles and responsibilities now span across many zones.

According to AmbitionBox, the average COO salary in India ranges from ₹13 lakhs to ₹1 crore per year, typically for professionals with 10 to 31 years of experience.

The following are the most typical requirements of a modern COO:

· Strategic execution: Convert the boardroom strategy to road maps of operation.

· Cross-Department Co-ordination: Removing marketing, finance, HR and IT SILOs.

· Process Automation Process: Deployment of tools and systems that reduce the manual effort to the least possible extent.

· Crisis Management: Mitigation of risk, management in uncertainty and stability of operations.

· Leader of People: Coach mid-managers, build team structures, and retain talent.

· Customer-Centric operations: Make sure that internal operations go to terms with the customer expectations.

Now, so much of the long story short, we may say the position of COO has become that of closing the gap between the big picture and the daily view.

How the COO Role Supports the CEO’s Agenda

Whereas the CEO determines the vision and the relations with investors, it is the responsibility of the COO to make sure that such plans are easily carried out. And between the two, there should be a strong relationship of trust and understanding.

In other companies, the COO can be even more noticeable than a CEO, leading town halls, resolving department-level problems, or firefighting any misunderstanding.

In essence, COO responsibilities now mean connecting the big picture to the day-to-day task.

Here’s how the COO complements the CEO:

CEO says: “We’ll enter Southeast Asia next year.”
COO asks: “What’s the roadmap? What’s the budget? Who’s executing?”
CEO says: “Let’s embrace GenAI tools.”
COO checks: “Which tools? What’s the training plan? How do we measure ROI?”

Strategy now takes the biggest chunk. Tech transformation is not optional. And people management is becoming more active than ever.

Skills Required to Become a Chief Operating Officer

Thinking of how to become a Chief Operating Officer yourself?

It’s not just about years in operations. It’s about mindset, strategic thinking, and leadership.

Below are some non-negotiables:

Systems Thinking – Ability to see how all parts of a business connect
Tech Fluency – Understanding tools, platforms, and dashboards
Financial Acumen – Knowing how decisions affect the bottom line
Crisis Resilience – Managing pressure without burning out
Clear Communication – Translating strategy into execution plans

And finally, you must be execution-obsessed. The best COOs don’t just talk about results, they deliver them.

Why COOs Are Now Business Growth Partners

Today’s COO is not just managing supply chains or vendor relations. They’re building operating models that scale. They work with HR on organisation design, with marketing on lead management, and with tech on automation.

In fact, COO responsibilities have grown because companies expect operational leadership to be proactive, not reactive. If the CEO is the brain, the COO is the nervous system.

Imarticus Learning and the Global Senior Executive Leadership Programme – COO

To prepare professionals for this demanding role, Imarticus Learning, in collaboration with IIM Nagpur, offers the Global Senior Executive Leadership Programme – Chief Operating Officer.

The curriculum combines live online learning, campus immersions, and case-led sessions by industry veterans. It covers supply chain mastery, process improvement, leadership development, and more. Participants also receive consulting at IIM Nagpur, which is a rare opportunity to get strategic advice directly from experts.

Whether you’re looking to become a Chief Operating Officer or upgrade your skills, this programme delivers focused learning in real-world operational contexts.

Join the Global Senior Executive Leadership Programme – Chief Operating Officer by Imarticus Learning and equip yourself with future-ready operational leadership skills.

FAQ

1. What are COO responsibilities in a startup vs a large enterprise?

Startups want COOs to deal with implementation, fundraising, and recruiting. It is systems, automation, and scaling that are better defined in bigger companies.

2. What is the contrast between the roles and duties of the COO and those of a CEO?

CEOs are visionary, externally oriented and franchised to investors. COOs are the ones who bring vision to reality and also manage internal management.

3. Does the COO deal with financial planning?

It does, COOs tend to collaborate with CFOs to match the operations with the financial objectives and budgets.

4. What industries value COOs the most?

COOs are necessary to work in the tech, manufacturing, logistics, BFSI, and healthcare industries.

5. What are the tools a contemporary COO has to know?

Excel, ERP (enterprise resource planning), CRM (customer relationship management) platforms, dashboards (such as Power BI), and project management tools (such as Jira or Asana).

6. Is the COO a stepping stone to the CEO?
In many companies, yes. It’s one of the few roles that gives you a 360-degree view of the business.

The Final Words

The COO is no longer just the operator; they’re a builder, a strategist, and a partner in growth. They need curiosity, adaptability, and a sharp focus on execution.

If you’re aiming to become a Chief Operating Officer or just want to level up your operational leadership game, this is the time. Don’t just run the business. Shape it.

Transitioning to a Chief Business Officer (CBO): Navigating Leadership Paradigms

Posted on July 2, 2025July 2, 2025 by Imarticus Learning

You’ve climbed the ladder, managed functions, and delivered results. But now you’re asked to do more, take charge of growth, unify departments, and influence boardrooms. That shift from specialist to strategic leader? It’s not easy. Many seasoned professionals stumble here, not for lack of ambition, but because the role is different. Broader. Faster. More exposed.

The title might read “Chief Business Officer”, but the job demands a multi-skilled navigator. Strategy, operations, marketing, finance, everything needs your oversight. So, how do you transition without feeling overwhelmed?

This post breaks it down for you, from understanding what the Chief Business Officer roles and responsibilities really mean, to preparing yourself with the right training, like marketing courses or leadership frameworks.

Inside the Chief Business Officer Roles and Responsibilities

The Chief Business Officer (CBO) serves as the top operational executive in a growing commercial organisation or an academic or research institution, such as a university, college, or institute.

Chief Business Officer roles and responsibilities aren’t just about seniority; it’s about stitching the business together. A CBO oversees the commercial core of a company. Think strategy, growth, partnerships, customer success, and even HR in some setups. You aren’t just one department; you are every department’s connector.

You align departments with vision. You convert broad objectives into operational roadmaps. You report to the CEO but influence outcomes across the board. In Indian companies, CBOs especially often act as growth architects, bridging marketing, sales, and product teams.

Some of your key tasks include:

Building revenue strategy
Managing cross-functional leadership
Leading GTM (Go-to-market) strategy
Driving operational performance
Partnering with CFOs and CMOs to align business targets

The Chief Business Development Officer roles and responsibilities also vary depending on the industry. In tech, you’re product-focused. In healthcare, you’re more regulatory-driven. But the one thing that’s common? You must be proactive. Always.

Career Progression Towards Becoming a CBO

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AI-generated content may be incorrect.

CBO vs Chief Business Development Officer: What’s the difference?

Let’s not confuse Chief Business Officer roles and responsibilities with those of a Chief Business Development Officer (CBDO). While both roles are growth-focused, their scopes differ.

Role	Focus Area	Key Deliverables	Stakeholders
Chief Business Officer	Business Strategy, Cross-Function	Strategic planning, organisation-wide alignment	CEO, CFO, CMO, COO
Chief Business Development Officer	Growth Partnerships, Sales Strategy	Driving new business, market entry, and client acquisition	Sales heads, Partner teams

The chief business development officer’s roles and responsibilities lean heavily toward sales enablement and partnerships. A CBO, on the other hand, owns the roadmap that sustains long-term business success.

In India, Chief Business Officer salaries typically range between ₹25 lakh and ₹80 lakh per year, depending on the industry, company size, and the individual’s experience. On average, professionals in this role earn around ₹45 lakh annually.

Why marketing skills matter for a CBO?

You can’t lead growth without understanding how your brand competes. Marketing is no longer optional for leadership. As a CBO, you’ll sit in on campaigns, debate customer personas, and question funnel metrics. If that sounds unfamiliar, it’s time to explore marketing courses.

Marketing knowledge empowers you to:

Understand your audience
Connect the product with positioning
Allocate budget across brands and performance
Interpret metrics like CAC, CLV, and MQLs

Whether it’s digital marketing basics or advanced B2B growth models, these skills ensure you’re not just relying on your marketing head; you’re able to challenge them constructively.

What holds back aspiring CBOs?

Many mid-to-senior professionals hesitate. Some fear losing depth in their domain. Others feel they lack financial or marketing knowledge. The truth is, most CBOs didn’t start out knowing it all. But they upskilled fast.

Common bottlenecks include:

Lack of strategic planning experience
Weakness in cross-functional leadership
Minimal exposure to board-level reporting
Insufficient comfort with data or P&L

These gaps are real, but solvable. That’s why focused training like marketing courses and business leadership programmes makes all the difference.

How the Role of Chief Business Officer Has Evolved Over Time

Era	Focus	Key Skills Demanded
2000–2010	Sales and Partnership Driven	Client Acquisition, Territory Growth
2011–2020	Operational Efficiency	Process Design, KPI Ownership
2021–Now	Strategic and Digital Expansion	Cross-functional Strategy, Data-led Decision Making

Step Into C-Suite Leadership with the Global Senior Executive Leadership Programme: Chief Business Officer

Today’s CBO is not just a manager; they are the commercial brain of the company. That means continuous learning is critical. Programmes that cover strategy, analytics, digital transformation, and leadership aren’t just nice to have; they’re necessary.

You need simulation learning. Peer discussions. Case studies. Frameworks that work. And that’s where a programme like the Global Senior Executive Leadership Programme- Chief Business Officer, offered by Imarticus Learning in collaboration with IIM Nagpur, comes in.

This 6-month hybrid course blends live online sessions, campus immersion, and masterclasses from senior leaders. The focus? Helping you transition smoothly into the CBO role. From learning to drive operational efficiency to managing cross-functional teams and building strategic growth plans, this course covers it all.

Joining the Global Senior Executive Leadership Programme-Chief Business Officer means you don’t just gain academic knowledge. You gain a practical edge, a CBO career path built around real business challenges, and access to executive consulting at IIM Nagpur. Imarticus Learning ensures that what you learn directly applies to your job tomorrow.

Take the next step in your leadership journey. Enrol today in the Global Senior Executive Leadership Programme-Chief Business Officer by Imarticus Learning and IIM Nagpur. Start shaping the future of your organisation and your own.

FAQ

1. What are the core Chief Business Officer roles and responsibilities?
They include strategic planning, cross-functional alignment, and driving business growth across operations, marketing, and sales.

2. How is the role of Chief Business Officer different from a CBDO?

The Chief Business Officer assumes the head of all business activities, whereas the Chief Business Development Officer is basically involved with new market opportunities and relations.

3. What are the best marketing classes for preparing to be a CBO?

Seek out executive courses in digital marketing, strategic communication, or integrated brand management.

4. Are non-MBAs allowed to join as the Chief Business Officers?

Yes, some more training and programmes, such as the CBO Programme of Imarticus Learning, can accelerate your preparedness.

5. What industries employ CBOs in the greatest number?

The top recruiters of CBOs would be technology, education, health care, and e-commerce companies.

6. What is the duration of becoming a CBO?

In most cases, 10-15 years of cross-functional exposure and strategic positions.

7. Does the CBO need financial knowledge?

Absolutely. The real key to decision-making in this job is understanding P&L, budget, and forecasting.

Conclusion

Entering a CBO position is thrilling and hard. You do not just manage, you lead visions, hold teams, and craft futures. No matter which department you represent (either operations, marketing, or finance), you will have to think out of the box and be a strategically oriented leader.

Therefore, do not wait for the opportunity to come knocking. Beat it to the punch. Start learning. Start preparing. The greatest leaders do not come prepared; they develop the appropriate tools as time goes by.

Decoding Marketing Metrics: KPIs Every Marketer Should Track

Posted on July 2, 2025July 2, 2025 by Imarticus Learning

Have you ever felt confused about which digital marketing KPIs actually matter

Every marketer today juggles multiple data points, from likes and clicks to sales and conversions. But knowing what are KPIs in digital marketing truly count is tricky.

Maybe you’re spending hours checking reports, yet still unsure if your strategies even work. What if you could pinpoint exactly what metrics matter most? Well, understanding the best KPIs for digital marketing could change the game for you completely.

What are Digital Marketing KPIs: Why They Matter

A performance indicator, or key performance indicator (KPI), measures how well something is performing. KPIs help organisations measure the success of a given activity, whether it is a project, a programme, a product, or any other activity they may be undertaking.

KPIs (Key Performance Indicators) in digital marketing do not just play the role of numbers. They are your measuring rod, which would indicate whether you are getting closer or farther away from your goals.

Being aware of digital marketing KPIs enables you to recognise what is going right and what is going wrong. These are pointers to the actual performance of your efforts, so you can make adjustments in mid-strategy.

These metrics help you:

Adjust quickly when a campaign doesn’t land as expected
Stay accountable for every pound spent on marketing

Essential KPIs to Measure Your Digital Marketing Success

75 % of marketers believe AI-enabled search engines are optimistic that the use of AI-based search will benefit their blogs in a positive way, and 68% predict that this will improve traffic on their websites.

Website Traffic: The Foundation of Digital Marketing

More visitors generally mean more leads, if your website is set right. But traffic alone isn’t enough. It’s the quality of visitors that really counts. As soon as your team sets the right KPIs, all creative ideas and strategic actions are basically aimed at achieving definite growth and customer engagement.

Conversion Rate: Turning Visitors into Customers

Conversion rate is another of the best KPIs for digital marketing. It gauges the number of people who do what you desire, such as completing a form or making a purchase.

Cost per Lead (CPL): Keep Track of Your Budget

You don’t want to waste money on ineffective ads. That’s where CPL comes in. This metric helps you see exactly how much you pay for every new lead. Lower CPL means you’re doing things right, but higher CPL signals trouble, maybe poor targeting or bad ads.

Important Social Media KPIs You Shouldn’t Ignore

KPI	Why It Matters	Ideal Scenario
Engagement Rate	Shows audience interaction	High engagement, more shares
Follower Growth	Indicates your audience is growing	Steady, consistent growth
Click-through Rate	Tells if content drives action	Higher click-through rate

Email Marketing KPIs That Boost Your Campaigns

Email KPIs are key for direct, personal communication. Track open rate, click rate, and unsubscribe rate closely. If your unsubscribe rate spikes, your emails might be off-target or too frequent. High click rates mean your message hits home, encouraging action.

SEO KPIs: Improve Your Visibility Online

To achieve organic success, monitor organic traffic, keyword ranking and backlinking. Your organic traffic is directly associated with the quality of your content and the search referencing of your site. Low ranking translates to low visibility; it is time to have a better SEO strategy.

Paid Advertising KPIs

Always keep your eyes on metrics like ROI, CPC (cost per click), and ROAS (return on ad spend). CPC shows if your ad costs are reasonable. High CPC with low ROI indicates problems in ad targeting or quality.

MyCaptain Digital Marketing Programme at Imarticus Learning

If you’re serious about mastering digital marketing, the MyCaptain Digital Marketing Programme by Imarticus Learning is your go-to solution. In just 18 weeks, you’ll learn everything you need to become job-ready.

You’ll start with the Fundamentals of Digital Marketing through six engaging live classes and a practical project. Move on to Social Media Marketing with ten live classes and three hands-on projects. SEO gets simpler in nine focused classes and two practical projects.

Finally, Performance Marketing, the core of digital success, comes with 20 immersive live sessions and six intensive projects. Enrol in the MyCaptain Digital Marketing Programme to master tools used by real marketing professionals. Imarticus Learning ensures you’re fully ready for your next big career move.

FAQ

What are KPIs in digital marketing?

KPIs are scalable measures that determine the degree of success of your marketing campaigns.

What is the role of digital marketing KPIs?

KPIs assist the marketer in visualising the areas of success and failure and determining how to enhance the campaigns in the short term.

What are the ideal KPIs to practice in digital marketing?

You should start with monitoring web traffic, conversion rates, and costs per lead (CPL).

Is it possible to learn how to monitor KPIs in a digital marketing course?

Indeed, a digital marketing course imparts effective ways of monitoring and analysing KPIs.

What is the initial KPI I must observe in social media?

The engagement rate is an important measure that quantifies direct contact with the audience.

Do email marketing KPI matter to campaigns?

Certainly, they demonstrate the level of efficiency of your emails, directing your email policy.

What can I do to know more about digital marketing KPIs?

Courses such as MyCaptain Digital Marketing Programme are available at Imarticus Learning, where you can receive professional instructions.

The Final Words

Evaluating the appropriate KPIs in digital marketing is not only a necessary task; it is also the key to success in your marketing.

In case you are keen on advancing your abilities, then you ought to think about a professional certificate program in digital marketing, such as the MyCaptain Digital Marketing Programme at Imarticus learning. It is time to boost your digital marketing career.

Join Imarticus Learning today!

Revolutionising Education: Adaptive Assessments with Generative AI

Posted on July 2, 2025July 2, 2025 by Imarticus Learning

Do you feel standard tests fail to capture a student’s true potential?

Are your students scoring low not because they don’t know the material, but because the questions just don’t fit them? You’re not alone. This is what many educators, trainers, and even corporate L&D teams face them daily.

Conventional forms of testing are hard and blanket. They do not adjust to the varying learning speed, style, or abilities. Then, we should not overlook the preparation, grading, and feedback. Here is when adaptive assessments with generative AI come in.

So now, let us have a look at how AI in education is going to change assessments by making them dynamic and individualised.

AI in Education: The Shift from Passive Testing to Active Learning

Artificial intelligence in education (AIEd) is the practice of utilising AI technologies, including generative AI chatbots, to develop more adaptive learning environments.

Here, generative AI, data-driven decision-making, AI ethics, and hindrances to data privacy and AI literacy intersect. Nevertheless, teachers and schools struggle with a few issues, such as ineffective implementation, falsehood, and bias in algorithms.

AI in education is changing how assessments work. Instead of testing what students memorise, adaptive AI models assess how they learn. This improves the entire teaching cycle.

Main benefits of using AI in education:

AI tailors questions based on previous answers.
Learners receive real-time feedback.
Teachers save time with automated grading.

Imagine a student answering a medium-difficulty algebra question correctly. The system instantly bumps up the challenge. If they fail, the next question helps them learn, rather than punishing their mistake.

This is the future. This is the importance of AI in education.

Adaptive vs Traditional Assessments: A Comparison

Artificial Intelligence (AI) is transforming every part of modern life, including education and research. It’s changing how students learn, how researchers approach problems, and how educators deliver lessons.

In a recent survey, 73.6% reported using AI in education, 51% relied on it for literature reviews, and 46.3% of students and researchers used AI tools for writing and editing, highlighting just how rapidly adoption is growing.

Below is a quick comparison to understand where adaptive assessments powered by generative AI shine:

Feature	Traditional Assessments	AI-Powered Adaptive Assessments
Fixed Question Set	Yes	No
Personalised Difficulty	No	Yes
Real-time Feedback	No	Yes
Scalability	Medium	High
Time to Analyse Performance	High	Very Low

Adaptive assessments driven by AI learn from behaviour. This means smarter tests and better outcomes.

AI in Education Examples You Already Know

Here are some everyday AI in education examples that you may already use:

· Duolingo adjusts lessons based on your speaking ability.

· Khan Academy offers adaptive hints during tough problems.

· Coursera suggests follow-up lessons based on test results.

These tools show how AI in education improves both learning outcomes and the overall student experience.

Creative Uses of Generative AI in Education

Artificial Intelligence-Based Curriculum Development

Generative AI transforms the planning of curriculum because it explores extensive amounts of educational data to identify the optimal instructional methods and teaching materials. It facilitates a custom curriculum based on the specific needs of various groups of students, making the learning more individualised and whole.

As an example, the AI-powered systems monitor performance trends in students and propose any curriculum modifications to address the gaps.

Automated Content Creations

Generative AI creates content that you can use to learn, and it will be consistent every time, resulting in less pressure on the educator. It has the ability to create lesson plans, revision guides, quizzes, and even interactive exercises, but customised depending on how each student learns best.

A special tool, such as AI, is able to examine the scholarly background of a student to develop customised study aids. This helps in focusing on the weak points, enhances the general learning, and ensures that students are not bored since it coincides with their needs and interests.

Smarter Assessment Methods

Evaluation is an important aspect of any education, so generative AI will bring more intelligent assessment methods for student knowledge. It produces adaptive tests that adapt dynamically according to the response given by the student, and therefore, it provides a better indication of the level of knowledge that they possess.

AI also automates the marking process and delivers immediate feedback. This helps students correct their mistakes quickly and encourages steady progress. With prompt responses, learners stay motivated and become more active participants in their educational journey.

Importance of AI in Education You Shouldn’t Ignore

Let’s break down the advantages of AI in education:

Better Personalisation
Every learner is different. AI adjusts tests so that each learner gets a path suited to them.
Less Manual Work for Teachers
Educators can focus more on mentoring, not just evaluating.
Speed and Accuracy
Real-time feedback leads to quicker learning corrections.
Scalable and Flexible
Whether you’re training 20 employees or 20,000 students, AI scales smoothly.

These aren’t just benefits. They’re game-changers in how we approach learning.

The Role of Generative AI in Modern Education

Generative AI builds questions, simulations, and even full assessments based on curriculum guidelines and learner profiles.

Some real use-cases:

Creating practice scenarios in medical education
Designing logic-based questions in software engineering courses
Generating case studies in business schools

With tools like ChatGPT and other LLMs, generative AI can reshape what exams look like for both students and working professionals.

Why Institutions are Moving to AI-Powered Testing

Top Reasons:

Saves ~40% time in exam creation
Increases student retention by ~25%
Reduces dropout rates with early intervention

(Add a simple pie chart or flow chart showing how data flows from student response → AI analysis → next question → real-time feedback)

Generative AI Courses for Managers: Build Real-World Impact with PwC & Imarticus Learning

In the 4-month Generative AI for Managers programme by Imarticus Learning, offered in collaboration with PwC Academy, learners go beyond theoretical AI.

You learn real-world techniques through:

The 4P approach: Practice, Perspective, Process, Performance
Industry-focused case studies in finance, marketing, and operations
Real-time solutions for complex business scenarios
Guidance from PwC experts and practitioners
Lifetime career value through LinkedIn Learning and iimJobs access

This programme isn’t just for coders. It’s for decision-makers, managers, and future leaders who want to apply AI for real business value.

Enrol in the Generative AI for Managers programme by Imarticus Learning and PwC and step into the future of strategy and innovation!

FAQ

Q1. What is the significance of AI in education nowadays?

AI personalises learning, makes it speedy and effective, transforming the teachers and students into better people.

Q2. What are the advantages of AI in education with assessments?

It also amends questions according to the ability and performance of the learner.

Q3. What are some of the benefits of AI in education?

Improved personalisation, reduced grading time, reduced manual grading, and improved and more accurate assessment.

Q4. Is AI taking the role of educators?

No. It aids them by making the work less and helps them perform better in a classroom.

Q5. What is so great about adaptive assessments as compared to traditional ones?

This is the case since they do not emphasise memorisation, but rather understanding. Each assessment is individual to the learner.

Q6. How can one learn about AI in education?

Begin with organised coursework and a case study on the understanding of real-life applications.

Conclusion

The gap between learning and testing is closing. With the rise of generative AI and adaptive assessment models, students and professionals are finally getting fair, personalised, and growth-driven evaluations.

Whether you’re a teacher, content creator, L&D head, or business leader, now is the time to hold AI in education. AI in education, we’re finally seeing assessments that adapt to students, not the other way around.

Whether you’re a teacher, instructional designer, or manager, this shift matters to you.

Forget outdated tests. Start building the future of learning today!

AI in Finance: Revolutionising the CFO Role

Posted on July 2, 2025July 2, 2025 by Imarticus Learning

Do you feel like most of your time as a CFO goes into collecting scattered data, running outdated models, or putting out fires from finance teams?

Do you often wonder if there’s a smarter way to do it all without burning out?

Welcome to the new age of AI in finance, not just hype but a real solution for overloaded CFOs. From automating month-end reporting to forecasting market shifts before they hit the books, AI is quietly but firmly rewriting what it means to lead finance today.

But this transformation isn’t without confusion. Many leaders ask: Where do I even begin? Or will AI take away my control?

Why AI in Finance?

India’s finance sector is evolving faster than ever. Regulation is shifting, fraud risks are multiplying, and digital expectations from boards are skyrocketing. CFOs can no longer just manage books; they must predict them.

Here comes AI in accounting and finance. It introduces precision into predictions, analyses anomalies more promptly, and allows cost controls on a larger scale.

However, in contrast, Indian CFOs play with an additional level of pressure, unorganised data, outdated systems and processes involving people. This does not make AI a luxury but a need.

What are Some Issues that AI can Address with CFOs today?

Artificial intelligence (AI) allows computer systems to execute the tasks typically associated with human intelligence, such as learning, reasoning, problem-solving, perception, and decision-making.

What Problems Can AI Solve for CFOs Today?

Unlimited data crunching: AI accelerates the same process, liberating teams to work in the sphere of strategy.
Ineffective sales and cost forecasting: Machine learning also forecasts sales and cost patterns more effectively than legacy tools.
Delayed reporting: Automation reduces close time from weeks to days.
Fraud risks: AI-based anomaly detection flags suspicious activity before it spreads.

Whether you’re in manufacturing, BFSI, or retail, these are pain points you know all too well.

Where CFOs Are Already Using AI

Banking institutions are driving this surge in investment, allocating 31.3 billion U.S. dollars in 2024, up sharply from 20.65 billion the year before.

Let’s look at how AI is already used in key finance areas:

Finance Function	Traditional Approach	AI-Powered Approach
Forecasting	Excel + Past Trends	Predictive models + Real-time data
Risk Management	Manual Audits	Pattern recognition & anomaly alerts
Compliance	Static Checks	Dynamic rule engines
Budgeting	Historical Allocation	Scenario analysis via AI tools
Cash Flow Management	Manual Adjustments	Real-time liquidity tracking

This is not future talk. It’s already in motion.

Is AI a Threat or an Edge for CFOs?

Honestly, both depends on how you approach it. Some finance leaders fear AI will make roles redundant. In reality, it’s the opposite.

CFOs who adapt will delegate routine tasks to machines and focus more on growth decisions, M&A, ESG metrics, and board reporting.

You’ll move from controller to strategic navigator.

And that’s where AI in finance courses can help.

What You Must Learn as a Modern CFO?

AI isn’t just about tools. It’s about how you lead with them.

Here’s what’s essential:

Understand data science basics
Learn how machine learning applies to forecasting
Know how AI systems make decisions (transparency is key)
Build ethics into finance models
Align tech investments with board strategy

You don’t need to code. But you must understand how these technologies support finance decisions.

AI won’t solve every problem, but it gives CFOs the speed, precision, and space to solve the right ones.

What’s Holding CFOs Back?

Fear of change
Lack of AI knowledge
Concern over team acceptance
Unclear ROI

However, the right CFO course and leadership approach can break these barriers without harming the business.

How CFO Decision-Making Evolves with AI

The role of a CFO is no longer limited to managing budgets or financial compliance. With the arrival of AI in finance, decision-making has shifted from reactive to proactive and from gut feel to data-backed clarity.

Real-Time Data Integration
Automated Reports & Dashboards
Predictive Forecasting with Machine Learning
Scenario Modelling & Risk Analysis
Strategic, Forward-Looking Decisions

Lead Finance in the AI Era with the CFO (India) Programme

The Chief Financial Officer (India) Programme, delivered by London Business School in collaboration with Imarticus Learning, offers a world-class pathway for finance leaders ready to adopt AI and digital transformation. This isn’t a generic management course. It’s focused specifically on the challenges Indian CFOs face in high-growth markets.

The programme helps you blend AI understanding with practical financial leadership. You’ll learn in London and Mumbai, interact with global experts, and gain alumni status from one of the top finance schools globally.

If you’re serious about redefining your role in 2025 and beyond, the Chief Financial Officer (India) Programme is your gateway.

Apply Imarticus Learning to start your transformation!

FAQ

1. What is artificial intelligence in finance?

Artificial intelligence in finance uses artificial intelligence to manage activities such as forecasts, detection of frauds, and budgeting uses them more efficiently and quickly.

2. What role does AI play in finance and accounting now?

Finance teams apply it in real-time data analysis, transaction categorisation, compliance checks, and financial planning.

3. Are those AI in finance classes useful to CFOs?

Yes, they do make the finance leaders smarter in tech-led decision-making without turning into a tech specialist.

4. Will AI be the new CFO?

No, AI assists the CFO by doing line items, which is repetitive work. A human CFO brings judgement, leadership, and vision to the role.

5. Does it have a good AI-based CFO course?

Yes. Digital transformation and AI readiness are part of the Chief Financial Officer (India) Programme by the London Business School and Imarticus Learning.

6. Is it possible to use AI to make financial forecasts more accurate?

Yes. Machine learning models make predictions on real-time and historical trends, using which they provide better results compared to manual predictions.

7. What is the first step to learning AI in finance when having no tech background?

Begin with the classes that describe AI in layman’s terms. You do not have to code but should know how systems run.

The Final Words

Let’s be honest. The CFO role is no longer about managing numbers; it’s about managing what’s next.

AI in finance is not a trend. It’s a shift. Either you build your edge or risk falling behind.

Whether you’re ready to explore AI in finance courses, apply AI to your forecasts, or lead a digital-first finance team, the first step is understanding what’s changing.

Understanding Cyber Risk Management in Modern Businesses

Posted on July 2, 2025July 2, 2025 by Imarticus Learning

Have you ever imagined waking up to find your business website hacked?

What would happen if customer data leaked online? Most Indian businesses today fear cyber threats. They’re confused about cybersecurity and not sure where to start.

Cyber threats keep rising, and they worry their company might be next. This confusion and worry can make business owners panic. But there is good news. A clear cyber risk management plan can stop these problems before they start.

Let’s understand the importance of risk management in cyber security.

What is Cyber Security Risk Management?

Cyber risk management isn’t complicated. It means identifying, analysing, and reducing risks your business faces online. Many businesses make mistakes by thinking cybersecurity is just installing antivirus software. That’s wrong.

The appropriate level of management must approve risk mitigation. Cyber risk management looks at the full picture. It involves identifying weaknesses in your system, like weak passwords, outdated software, or even careless employees. Then, it finds solutions and reduces risks effectively.

Why is Cyber Risk Management Crucial for Your Business?

According to IBM’s Cost of a Data Breach report, a data breach in healthcare costs over $10 million, while the hospitality sector loses an average of $2.9 million.

Business owners ask, why care so much about cyber risks? It’s simple. Ignoring risks can shut your business down. Your customers trust you with their personal data.

If hackers steal this data, your business loses trust. Indian businesses see many cyber attacks daily. If you don’t manage cyber risks, your business reputation suffers. Managing cyber risks properly protects your customers, your money, and your reputation.

Cyber Risk Management Frameworks

Frameworks of cyber risk management give you a programmed way of knowing how to determine, evaluate, and control risks to security without necessarily developing one on your own.

The framework helps organisations implement proven best practices, address regulatory requirements, and become more immune to cyber attacks.

A reputed cyber risk management model often supports the enhanced security of many organisations:

NIST Cybersecurity Framework (NIST CSF)
ISO/IEC 27001
CIS Critical Security Controls (CIS CSC)
COBIT
HITRUST CSF
FAIR (Factor Analysis of Information Risk)
System and Organisation Controls 2 (SOC 2)
Framework for GDPR (General Data Protection Regulation) Compliance
Payment Card Industry Data Security Standard (PCI DSS)
CMMC (Cybersecurity Maturity Model Certification)

NIST CSF accommodates a risk-based approach of a flexible nature, for example. ISO/IEC 27001, in contrast, provides an internationally accepted guide on the management of information security and enables an organisation to create a strong and reliable information security system.

Common Cyber Threats You Must Know

You can’t manage risks if you don’t know what they are.

Here’s what you must watch for:

Cyber Threat	Simple Explanation
Phishing	Fake emails to steal sensitive info
Malware	Software to damage your computer systems
Ransomware	Hackers lock your system until you pay money.
Data Leaks	Sensitive information exposed online
Password Attacks	Hackers cracking weak passwords

Knowing these threats is a step toward securing your business.

Practical Steps to Manage Cybersecurity Risks

Step 1: Identify weaknesses.
Step 2: Analyse how dangerous each risk is.
Step 3: Make a plan to reduce these risks.
Step 4: Implement your plan immediately.
Step 5: Keep reviewing and improving regularly.

This practical method helps you control cyber threats before they become a problem.

Many businesses don’t have skilled people to handle cybersecurity. A good cybersecurity course fills this gap. Courses teach your team how to identify threats quickly. Your team learns to handle security breaches calmly.

In India, many companies face cyber attacks because they ignore cyber risk management. Big financial companies, even startups, lost customer data and money. A company lost years of customer trust due to a phishing attack. This happened because employees didn’t know about cyber threats. Had they managed cyber risks, this would never have happened. This story teaches a clear lesson.

Why Choose Oxford Cybersecurity for Business Leaders Programme by Imarticus Learning?

The Oxford Cybersecurity for Business Leaders Programme by Imarticus Learning provides a complete solution. It gives Indian business leaders skills to handle cyber threats confidently. The programme offers Oxford’s famous online learning experience.

You’ll join exclusive masterclasses specially organised for Indian business leaders. You learn the aspects of practical cybersecurity threats such as phishing, malware, and ransomware from the leading professionals in the field at Oxford. The course also links you to the network of global alumni of the Oxford Saïd Business School.

The course connects you with Oxford Saïd Business School’s global alumni network. With over 36,000 members worldwide, this programme helps you network with top industry leaders. Enrolling in the Oxford Cybersecurity for Business Leaders Programme ensures your business stays secure in the digital age.

Secure Your Business Future. Join Imarticus Learning Today!

FAQ

1. What is cyber security risk management?

Cyber security risk management is a process of how to manage online threats to a business in order to prevent the occurrence of cyber-attacks.

2. What is the importance of risk management in cyber security?

Your reputation, your financial status, and your customer information are safe from regular cyber investigations when you have proper cyber risk management.

3. Who should enrol in a cybersecurity course?

Individuals, such as business owners, information technology managers, and workers, who handle sensitive information within an organisation should enrol to protect their organisations effectively.

4. What is the recommended frequency of businesses reviewing their cyber risk management plans?

Companies ought to revise their cyber risk management strategies every 6 months or whenever there are significant changes in technology.

5. Does cyber risk management prevent cyber attacks?

Although no system is 100 percent secure, proper cyber risk management basically minimises the risk and effect of an attack.

6. Is the Imarticus Learning cybersecurity course a globally-recognised course?

Yes, Oxford Cybersecurity for Business Leaders Programme by Imarticus Learning is a programme that will provide globally recognised certification and networking.

7. Do small business enterprises also require cyber risk management?

Indeed, small businesses are extremely targeted, and they must take an active approach to protect against the threat of attacks by managing cyber risks.

Conclusion

Cyber risks won’t disappear. In fact, they grow stronger every day. Ignoring cyber risk management puts your business at serious risk. A proactive approach to managing cyber threats protects your company and customers effectively.

Take action now, or face serious problems tomorrow.

Join the Oxford Cybersecurity for Business Leaders Programme Now!

K-Means Clustering Explained: A Beginner’s Guide with Python

Posted on July 2, 2025July 2, 2025 by Imarticus Learning

Have you ever looked at a massive spreadsheet and thought, “How do I even begin to group these customers, users, or patterns?” You’re not alone.

For data analysts and beginners stepping into machine learning, understanding how to organise unlabelled data is frustrating. You don’t want theory-heavy explanations. You want a hands-on approach that’s simple, practical and shows real results.

That’s exactly where k means clustering fits in. Whether you’re building recommendation systems, segmenting customers, or detecting anomalies, k means clustering algorithm simplifies complex data by breaking it into logical groups.

What is K Means Clustering and Why Does It Matter

K means clustering, which is a vector quantisation method first used in signal processing. It partitions n observations into k clusters, where observation is basically assigned to the cluster with the nearest mean (also called the cluster center or centroid), which acts as the cluster’s representative.

You tell the algorithm how many clusters (or “groups”) you want. It then:

Picks some initial points (called centroids),
Assign nearby data points to those centroids,
Repositions the centroids based on the average of the assigned points,
Repeat until nothing changes.

It’s clean, fast, and widely used, especially in marketing, finance, and recommendation systems. If you’ve ever used YouTube or Amazon, you’ve already seen this in action.

The k means clustering algorithm works best when the data naturally falls into separate groups. It’s used across sectors, from banking to telecom, where decisions need data-based segmentation.

Choosing the Right Number of Clusters

A common question: how many clusters do I need?

The answer? Use the Elbow Method.

The algorithm calculates “inertia” and how spread out the points are in each cluster. The more clusters you add, the lower the inertia. But at some point, adding more clusters gives very little improvement. That “elbow” point is your sweet spot.

This is why many analysts plot inertia versus k. The curve tells you when to stop. In a Programme in Data Science and Artificial Intelligence, you’ll often use this graph before running any model.

K-Means in Action: A Simple Python Example

In cluster analysis, the elbow method helps decide how many clusters to use in a dataset. You plot the explained variation against the number of clusters, then look for the ‘elbow’ point where the curve starts to flatten. That point usually shows the best number of clusters.

Let’s walk through a basic k means clustering example using Python:

from sklearn.cluster import KMeans

import pandas as pd

# Sample dataset

data = {‘Income’: [15, 40, 90, 55, 75], ‘SpendingScore’: [39, 81, 6, 77, 40]}

df = pd.DataFrame(data)

# Running the algorithm

model = KMeans(n_clusters=3)

model.fit(df)

# Add cluster labels

df[‘Cluster’] = model.labels_

print(df)

This code assigns each customer into a group based on how much they earn and spend. Easy to follow. That’s the power of k means clustering with Python, it lets you build results fast.

When Should You NOT Use K-Means?

While it’s a great tool, k means clustering algorithm has limits:

Doesn’t work well with non-spherical clusters.
It can break with too many outliers.
Needs you to guess the value of k (though elbow method helps).
Doesn’t perform well if features have different scales.

So, always scale your data (using standardisation or normalisation) before applying it. And test with different k values.

Real-Life Use Cases: K-Means at Work

Retail: Group customers into value segments for personalised promotions.
Healthcare: Group patients based on symptoms or treatment responses.
Finance: Spot unusual transactions that might indicate fraud.
Telecom: Segment users based on usage patterns and churn risk.

Practical Example: Customer Segmentation

Refer to the table attached. It shows a common use case in customer segmentation using a k means clustering example.

With just two features, income and spending score, you can group users into three practical clusters: high-value, low spender, and mid-range. Each decision becomes data-driven.

Customer ID	Annual income (₹000s)	Spending Score	Assigned Cluster
1	15	39	Low Income
2	40	81	High Value
3	90	6	Low Spender
4	55	77	High Value
5	75	40	Medium

Tips to Use K-Means Efficiently

Always standardise your data.
Use the elbow method to decide k.
Run multiple times to avoid poor initialisation.
Don’t rely on it for non-linear problems; go for DBSCAN or hierarchical clustering instead.

These simple tweaks make a big difference in results.

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Registering for a Programme in Data Science and Artificial Intelligence without knowing k-means is like trying to drive without a steering wheel.

At Imarticus Learning, the Executive Post Graduate Programme In Data Science & Artificial Intelligence gives you hands-on exposure to techniques like this. With a GenAI-powered curriculum, global capstone projects, and career support from over 2,500 hiring partners, you don’t just learn; you transition into high-demand roles.

You’ll also attend offline AI and cloud conclaves, work on real projects with over 35 tools, and get personalised mock interviews and resume support. All in an 11-month online weekend format.

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FAQs

1. How does the k mean clustering algorithm work?

The k means clustering algorithm works by first choosing k random points called centroids. Each data point is then assigned to the nearest centroid. After that, the centroids move to the centre of their assigned points.

2. Can you give an example of k, which means clustering in Python?

Yes. A simple k means clustering example in Python, which would be using customer data like income and spending habits.

3. Is k means clustering used in real-world businesses?

Yes. Many businesses use k, which means clustering, to improve customer targeting, detect fraud, manage inventories, or optimise services. For example, banks use it to group clients by risk level, while e-commerce platforms use it to show personalised product suggestions.

4. What is the ideal k value in k means clustering?

There is no fixed k value. The best way to choose k is by using the elbow method. This involves testing different k values and seeing which one gives the best balance between accuracy and simplicity. The ‘elbow point’ in the chart usually shows the right number of clusters.

5. How does k mean used in a programme in data science and artificial intelligence?

In a Programme In Data Science and Artificial Intelligence, k means clustering is a core technique in unsupervised learning. Learners practice real-life projects such as customer segmentation, anomaly detection, and pattern recognition. It’s one of the must-know algorithms in most data science curricula, including the one from Imarticus Learning.

6. Why is k means clustering important in data science courses?

Because it helps you work with raw data without labels, real-world data is often unorganised. K means clustering helps make sense of it by grouping similar entries. That’s why it’s a foundation skill in any Programme In Data Science and Artificial Intelligence, especially when working with business or user data.

The Final Words

K means clustering, which may sound like just another algorithm. But once you use it on your dataset, you’ll realise how powerful it is. It simplifies chaos. It helps you take the first step toward advanced analytics.

Start small. Try out the Python example. Tune it. Visualise it. Then scale up.

If you’re serious about building a future in data science, this is one tool you can’t ignore.

What Are Accounting Conventions and Why Do They Matter in 2025?

Posted on July 2, 2025July 2, 2025 by Imarticus Learning

Have you ever looked at a company’s financial statement and wondered, “How do they decide what to report and what to leave out?”

You’re not the only one. Every number in a financial report follows certain unwritten guidelines. These are basically called accounting conventions, and yes, they still matter in 2025 more than ever.

If you’re a business owner, finance student, or working in accounts, you’ve probably asked, What is accounting conventions, or heard terms like materiality or conservatism without clarity. This blog is here to understand all of that. In fact, if you’re taking a financial management course, this should be your base before anything else.

Why 2025 Demands More Clarity in Financial Reporting

With startups scaling faster, taxes changing every year, and AI entering accounting software, reporting in 2025 is a basic routine. But even with all this change, consistency and trust remain key. That’s where accounting conventions quietly do their job, making sure every report stays fair and easy to follow.

While laws give the basics, accounting conventions fill the gaps. They help accountants make the same kinds of decisions across companies and years. This saves time, builds trust, and avoids confusion.

The Basics: What Is Accounting Conventions?

Accounting standards set out in clear detail which accruals must be made, how financial statements should be well presented, and what extra disclosures are necessary. The term ‘generally accepted accounting principles’ (GAAP) became widely used in the late 1930s. Accounting conventions are rules that are not legally enforced but are widely followed in practice.

Let’s break it down further.

Laws = Mandatory.
Accounting standards = Official rules.
Accounting conventions = Unofficial but accepted norms.

You’ll see these in every business, big or small.

Types of Accounting Conventions Used Today

The Ministry of Corporate Affairs (MCA) has made important changes to the Companies (Indian Accounting Standards) Rules, 2015, which came into effect on 1 April 2024. These changes affect Ind AS 117 (Insurance Contracts) and Ind AS 116 (Leases).

The most commonly used conventions are:

Consistency
Full Disclosure
Materiality
Conservatism

How Each Accounting Convention Works

Understanding the Four Main Accounting Conventions

Convention	How It Works	Why It’s Followed
Consistency	Accountants stick to the same methods each year.	It helps compare results over time without confusion.
Full Disclosure	All important financial details are clearly mentioned in the reports.	It ensures transparency so nothing important is hidden from stakeholders.
Materiality	Tiny amounts that don’t change decisions can be left out.	It saves time by ignoring things that won’t affect overall understanding.
Conservatism	When in doubt, they show lower profits and higher expenses.	It avoids overstating the company’s position and keeps expectations realistic.

This table simplifies four major accounting conventions.

So, when a company suddenly changes how it values stock or assets, analysts will look for proper disclosures; that’s where these conventions protect both the company and its audience.

Who Needs to Know This?

You do, if you are:

A finance student wondering what is accounting conventions in practice.
A small business owner maintains books in Excel.
A finance executive plans to join a financial management course.
A startup founder presenting statements to a VC.
Or even someone in taxation, compliance, or internal audits.

Real-Life Example: Where Things Go Wrong Without Conventions

Imagine a company that changes its depreciation method every year. One year it uses the straight-line method, and the next year it shifts to the reducing balance method.

What happens?

It gets harder to understand their asset value, and profits vary too much.

That’s why accounting principles concepts and conventions exist: to keep things real and comparable.

Flowchart: Accounting Conventions in Use

Business records a transaction
↓
Accountant chooses how to report it.
↓
Refers to standards
↓
Look at accounting conventions to see if the rules are unclear.
↓
Applies consistency, materiality, or conservatism
↓
Prepares final report

As seen above, every accountant uses these conventions even if they don’t realise it.

Evolving With Time: What Changes in 2025?

Not the conventions themselves, but how they are basically applied.

For example:

Materiality thresholds change as businesses grow.
Full disclosure now includes ESG reporting.
Conservatism becomes harder to judge with intangible assets.
AI now flags inconsistencies, but it still depends on human judgment.

So, while tech supports accounting, the final call often needs human logic, powered by these conventions.

Imarticus Learning’s Financial Analysis Prodegree

If you’re looking to move into corporate finance, investment banking, or private equity, the Financial Analysis Prodegree by Imarticus Learning, developed in collaboration with KPMG, offers a smart head start.

It’s a four-month, part-time course conducted on weekends via live virtual sessions. This financial management course builds solid skills in financial analysis, reporting, and valuation. You’ll learn directly from KPMG experts, work on real case studies, and get trained in tools used by top firms today.

By registering in the Financial Analysis Prodegree, you not only earn a prestigious certification but also gain access to resume-building support and premium job platforms like IIMJobs Pro.

Enrol now and build your career the smart way, with Imarticus Learning.

FAQ

1. What is accounting conventions?
They generally followed rules that help accountants prepare financial statements clearly and fairly.

2. How do accounting conventions differ from accounting standards?
Standards are formal rules issued by authorities. Conventions are practices followed by most professionals for consistency.

3. Are accounting principles, concepts, and conventions still relevant in 2025?
Yes. Even with digital tools, accountants use these to guide judgment calls when rules aren’t clear.

4. Why are financial management course options taught this early on?
Understanding these concepts is key to analysing financial reports in any role or industry.

5. Which are the most used accounting conventions in India?
Consistency, full disclosure, materiality, and conservatism in that order.

6. Can small businesses ignore these conventions?
Not if they want to scale or raise funding. Even VCs expect basic reporting standards.

7. Do accounting software follow these rules?
Yes. Most platforms have these conventions built into their system logic.

8. Where can I learn about accounting principles concepts and conventions in depth?
A structured financial management course like the one offered by Imarticus Learning can help you learn them the right way.

The Final Words

Accounting conventions may not be official laws, but without them, finance would be chaos. They introduce sanity, transparency, and credibility in any financial statement. It is essential that you have the proper insights into all the concepts and the conventions of accounting principles, whether you are preparing or analysing the reports, as proper insight will enable you to make the right decisions.

That is why the next time you see a balance sheet, you will realise that there is a rule behind every number, and behind every rule, there is a reason.

Measuring Risk-Adjusted Performance: Key Metrics

Posted on July 2, 2025July 2, 2025 by Imarticus Learning

Are you earning enough for the risks you’re taking?

That’s the one question every investor, portfolio manager, or finance student needs to answer. You might have posted a great return.

But what if the market handed you that on a silver plate? What if your portfolio took twice the risk of another for the same return? Without the right metrics, you wouldn’t even know.

This is where the risk adjusted return comes into play.

In this post, we’ll break down what is risk adjusted return, the formulas that matter, and how professionals use these metrics to judge whether the returns are worth the risk.

What Is Risk Adjusted Return?

Risk-adjusted return on capital (RAROC) is a method of determining the profitability of a certain entity after considering the risk. It is, therefore, useful to help assess financial performance because the returns are basically compared to risk exposure, providing a consistent and clear analysis of profitability within various divisions of a business.

Why Simple Returns Are Not Enough

A 15% return looks great until you realise the market did 20%, and your portfolio took double the risk. Or worse, it had huge ups and downs along the way.

Most basic return figures ignore volatility, market sensitivity, or downside risks. That’s where risk-adjusted return shines.

It lets you:

Compare apples to apples, even if risk levels differ.
Reward consistency over just high numbers.
Identify which fund managers add actual skill, not just luck.

Without these adjustments, performance reviews are incomplete. And for those in financial risk management courses, mastering these measures is a must-have skill.

Popular Risk Adjusted Return Formula

In India, there isn’t a single fixed figure for the risk-adjusted return on capital (RAROC) in 2025. Still, market trends and sector-specific performance offer useful context. Small-cap mutual funds have faced notable losses this year, with some dropping by as much as 18%.

Each formula highlights different kinds of risks: total risk, downside risk, market risk, etc.

Here are the most widely used ones.

1. Sharpe Ratio

Formula:
(Return – Risk-Free Rate) ÷ Standard Deviation of Return
Best for comparing portfolios or funds, assuming returns are normally distributed.
A higher Sharpe Ratio means better returns for each unit of risk. It’s perfect when you want a quick overview of performance vs volatility.

2. Sortino Ratio

Formula:
(Return – Risk-Free Rate) ÷ Downside Deviation
Focuses only on bad volatility (losses).
Investors care more about downside risk than upside volatility. The Sortino Ratio makes this distinction.

3. Treynor Ratio

Formula:
(Return – Risk-Free Rate) ÷ beta
Good for portfolios with systematic risk exposure. It uses beta (market risk), unlike Sharpe, which uses total risk. Especially useful when portfolios are well-diversified.

4. Jensen’s Alpha

Formula:
Actual Return – Expected Return (via CAPM)

Helps understand a manager’s value over market movements. Alpha shows how much return is due to skill, not market movement.

Metric	How It’s Calculated	Type of Risk Considered	Common Use
Sharpe Ratio	(Portfolio Return – Risk-Free Rate) ÷ Standard Deviation of Return	Overall (Total) Risk	Comparing general portfolio performance
Sortino Ratio	(Portfolio Return – Risk-Free Rate) ÷ Downside Deviation	Downside (Negative) Risk	Analysing performance with a focus on losses
Treynor Ratio	(Portfolio Return – Risk-Free Rate) ÷ beta	Market Risk (Systematic)	Evaluating portfolios exposed to the market
Jensen’s Alpha	Portfolio Return – [Risk-Free Rate + Beta × (Market Return – Risk-Free Rate)]	Market vs Actual Return Gap	Measuring fund manager’s added value

When and How to Use These Metrics

Each formula serves a different purpose.

Here’s how professionals use them practically:

Sharpe Ratio: Ideal for mutual funds or comparing ETFs.
Sortino Ratio: Used when investments are highly volatile or focused on capital protection.
Treynor Ratio: Used by hedge funds or managers handling high-beta portfolios.
Alpha: Used by firms to evaluate whether active managers justify their fees.

Comparing Risk-Adjusted Metrics

Here’s a quick bar chart comparing sample values for each metric to help you visualise how they stack up:

The bar chart shows how different funds or portfolios might score differently based on the metric used, even if they deliver the same raw return.

Build a Career in Financial Risk: Join the FRM® Course

Are you looking to build a career in portfolio risk management?

Understanding these metrics is step one. However, mastering them and applying them in live markets requires expert-led training.

That’s where the Financial Risk Manager (FRM®) Certification by Imarticus Learning comes in.

Recognised globally, this certification builds your credibility across finance, risk, and investment domains. With over 90,000 professionals certified across 190+ countries, FRM opens doors in banks, investment firms, and consulting roles. You’ll learn real-world risk-adjusted return analysis, valuation techniques, and decision-making under uncertainty.

At Imarticus Learning, the FRM® course includes:

Access to GARP-approved AnalystPrep platform
4000+ practice questions & 8 mock tests
300+ hours of expert-led sessions
1-on-1 doubt resolution and career bootcamp

FRM certification holders are often hired by Big 4 firms, global banks, and top asset managers. If you’re serious about becoming a risk leader, this course will set you apart.

Take the next step in your financial career.

Join the FRM® Certification by Imarticus Learning and gain the skills hiring managers seek in risk professionals.

FAQ

Q1. What is risk adjusted return?
Risk adjusted return is the profit earned relative to the level of risk taken, helping compare investments on a like-for-like basis.

Q2. Which is the best risk adjusted return formula?
There isn’t one best formula. The Sharpe Ratio is common, but Sortino and Treynor work better in specific contexts.

Q3. Why is risk adjusted return important in financial risk management courses?
It shows the quality of return, not just quantity, which is something every FRM candidate must know.

Q4. Where is the Treynor Ratio used?
In portfolios exposed to systematic (market) risk where beta plays a role.

Q5. What is Jensen’s Alpha used for?
It evaluates fund manager performance after adjusting for market movements.

Q6. Can I calculate risk adjusted return in Excel?
Yes. Most formulas require historical returns and standard deviation or beta inputs.

Q7. Is risk adjusted return included in the FRM exam?
Yes, it’s a core topic in portfolio risk and performance analysis modules.

The Final Words

Knowing your return is only half the story. It is knowledge of the risk of that particular return that makes a smart investor and a lucky one.

It does not matter whether you are dealing with your personal money, doing a financial risk management course, or planning to do the FRM exam. You need to have control over risk adjusted return.

Implementing Zero Trust Security Models in Modern Enterprises

Posted on July 2, 2025July 2, 2025 by Imarticus Learning

Have you ever trusted someone just because they had a badge?

That’s how traditional enterprise security used to work: if a user was inside the company network, they were safe. But things have changed.

Workforces are remote, devices are mobile, and cyber threats are more advanced. Trusting anyone blindly is like leaving your front door open just because you recognise the postman. That’s where zero trust security comes in.

But here’s the good news: zero-trust security models eliminate this blind trust. Instead of assuming anything, the system verifies everything. This model isn’t just for large IT firms anymore. Zero trust security models eliminate this blind trust.

What Is Zero Trust Security? And Why Is Everyone Talking About It?

Zero trust security means “never trust, always verify.”

Zero trust architecture (ZTA), also known as perimeterless security, defines how organisations design and implement their IT systems.

So, what is zero trust security? It’s a model that checks every access request to see if it originates from an open network. Each request is verified, monitored, and logged.

According to several security leaders, modern enterprises are shifting from perimeter-based defences to zero trust architecture.

This model strengthens security posture by using the following principles:

Identity verification at every step
Minimal access: just enough to do the job
Continuous monitoring, not just one-time checks
Risk-based access controls

The zero trust security model aligns well with companies dealing in finances, such as those offering a CPA course, where data integrity and access control are non-negotiable.

Why Traditional Security Methods No Longer Work

India’s zero trust security market will likely generate around US$ 5,635.5 million in revenue by 2030. From 2025 to 2030, it can grow at a compound annual rate of 23.1%.

You might still be using VPNs, firewalls, or internal authentication systems and wondering why you need something new. The truth is these older systems were not built for today’s complex IT environments.

Here’s where they fall short:

Assume internal users are safe
Too much access
Lack of visibility

In contrast, the zero trust security model assumes every access point is a potential risk. That’s why it verifies every user every time.

The Key Pillars of the Zero Trust Security Model

Let’s explore what supports a zero trust strategy.

Think of these as the foundation bricks:

Pillar	Description
Identity and Access Management (IAM)	Verifies user credentials, devices, and roles.
Device Security	Checks if devices meet company security standards.
Network Segmentation	Breaks networks into smaller zones to limit risk.
Least Privilege Access	Gives access only to what is needed, nothing extra.
Continuous Authentication	Re-authenticates users throughout sessions.
Analytics and Monitoring	Tracks behaviour to identify unusual access or threats.

A proper zero trust security plan uses all of these, not just one or two.

How to Implement Zero Trust in Phases

Don’t worry; you don’t have to adopt everything in one go. Start small.

Know what you’re protecting.
Begin by identifying your key assets: customer data, financial records, and critical software systems.
Understand user behaviour
Use monitoring tools to analyse who accesses what, when, and why.
Segment your network
Break large networks into manageable segments to reduce attack impact.
Introduce multi-factor authentication (MFA)
MFA is a simple yet strong start to zero trust security.
Apply for least privilege access.
Stop giving blanket access. Set access rights based on roles and duration.
Monitor and adapt
Use analytics to continuously refine your model based on emerging threats.

Real-World Enterprise Use Cases: From Tech to Accounting

Big names in tech have adopted this model, but it’s also seeing traction in finance, healthcare, and e-learning platforms.

For instance, CPA learning platforms that handle financial simulations, test data, and certification records must prevent unauthorised access to user progress and examination tools. This is where the zero trust security model proves essential.

Even businesses running hybrid teams where employees work from home or multiple locations need this model to safeguard data without compromising user experience.

Why Zero Trust Security Is Crucial for Financial Courses

If you’re considering a CPA course, you’re not just studying accounting; you’re entering a profession governed by trust, ethics, and regulatory compliance.

Now, imagine a course provider that lacks proper data security. That could mean:

Breach of exam data
Compromise of student personal information
Invalidated certifications

Imarticus Learning understands this. Their CPA course isn’t just about concepts. They prepare you for real-world accountability and security.

US CPA Course at Imarticus Learning: Secure Learning for a Secure Career

If you’re eyeing a future in finance or auditing, the US CPA course from Imarticus Learning is an excellent choice. With a global reputation and industry integration, this course sets you on the path to becoming a U.S. certified public accountant.

Here’s what you’ll gain:

· CPA certification that is globally recognised and is valid in 130+ countries

· Opportunities for a career in India, the U.S., Canada, etc.

· The salary is between INR 12.50 to 20.50 lakhs

· A tough boot camp and placement assurance

· Complete curriculum presented on AICPA accredited and live simulations

With 10+ years of experience, Imarticus Learning helps fast-track your journey from aspiring accountant to financial leader, all while upholding the highest standards of security and compliance.

Explore the CPA course at Imarticus Learning today!

FAQs

1. What is zero trust security?
Zero trust security means you never automatically trust anyone. Everyone must prove their identity before accessing systems.

2. How is the zero trust security model different from VPN or firewall-based models?
VPNs assume trust once you’re inside. Zero trust never assumes; it verifies every action.

3. Why is zero trust important for financial organisations and CPA learners?
Finance involves sensitive data. Zero trust prevents leaks and ensures only authorised access.

4. What does it take to implement zero trust?
Start with small changes like multi-factor authentication and access restrictions and build up over time.

5. Can zero trust help with regulatory compliance in finance?
Yes, it improves visibility, tracking, and control keys for audits and compliance checks.

6. How long does it take to implement zero trust security fully?
It depends on your company size. However, phased adoption can begin in weeks, not months.

Conclusion

Cyber threats don’t knock on your door; they sneak in. Whether you’re running a company, studying finance, or building enterprise applications, ignoring access control is no longer an option.

By adopting the zero trust security model, you shift from reacting to problems to preventing them altogether.

And if you’re starting your CPA journey?

Ensure your learning provider integrates secure platforms that respect both your time and your data.