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Introduction to Capital Markets: Key Concepts and Components

Posted on August 3, 2023April 2, 2024 by Imarticus Learning

The financial market provides convenience and means for sellers and buyers to trade or exchange different modes of financial assets. The money market and the capital market are two types of financial markets.

The capital market primarily deals with the stock and bond markets and provides long-term financing to governments, businesses, and other entities. Equities and debt securities are sold through the capital market. The money market comprises instruments like treasury bills, certificates of deposits, commercial papers, call money and repo rate. Potential candidates looking to upskill can look up capital market courses several institutes offer to gain in-depth knowledge.

This blog is perfect for finance aspirants wanting to learn about the capital market, its types, associated components and their importance in an economy.

Types of Capital Market

The two types of capital markets are as follows –

Primary market

It is a financial system where a company introduces new securities, bonds, stocks or initial public offering (IPO) in exchange for cash. Thus, fresh investment is pumped into the financial market. The fund thus generated helps the company invest in capital assets like land, machinery and other similar aspects required for the company’s expansion.

Secondary market

This financial system enables buyers and sellers to exchange previously issued securities, bonds, debentures or stocks. The secondary market also aims to raise the fund value so that both sellers and buyers benefit. The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are examples of secondary markets in India.

Stakeholders of Capital Market

There are two types of stakeholders in the capital market:

Suppliers of funds

Suppliers of funds typically consist of banks, insurance houses, and institutions holding public pension or retirement funds.

Users of funds

Users are private and government institutions financing projects, business houses, manufacturers, and even individuals contemplating home and vehicle purchases.

Intermediaries of Capital Market

Organisations or individuals who assist in bridging gaps between the surplus and deficit parties are termed financial intermediaries. The different intermediaries of capital markets are as follows –

Brokers – They may be individuals or firms who help parties to buy and sell shares in exchange for commissions.

Stock exchanges – BSE and NSE are the standard Indian stock exchanges where financial transactions occur.

Regulatory body – The Securities Exchange Board of India(SEBI) monitors the capital market in our country.

Instruments of Capital Market

The instruments of the capital market are as follows –

Stocks or shares

Companies issue stocks or shares and represent their ownership. The shareholders enjoy quarterly dividends against their purchased shares. The quantum of return on investment depends on the financial performance of companies.

Stakeholders having equity shares may voice their decision in the annual general meeting of the concerned companies. They are even entitled to get a share of assets in case of liquidation after all debts are cleared.

Bonds

Bonds are debt securities companies issue to raise funds for growth and expansion. Bond buyers receive interest and the principal amount at the end of the maturity period.

Currency

Foreign markets use currency as their financial instrument through three types of agreement — spot, outright forward and currency swap.

Derivatives

These are secondary instruments in the capital markets derived from their original counterparts like bonds, shares, currency etc.

Functions of a Capital Market

There are several essential functions of a capital market, some of which are listed below:

Capital formation

Capital is created using surplus funds from investors or financial institutions for business houses looking for expansion. Investors choose to use the excess money in this capital market since sitting cash does not reap any benefit.

Economic growth

The capital market boosts the country’s economic prosperity. Money put into the system fosters business growth by creating fresh demand in the market. A business house may raise cash by offering a portion of its business in the stock market or through debt instruments like bonds.

Liquidity

The capital market system provides cash liquidity to people or institutions at the time of demand. It is a solid assurance to investors.

Price regulation

Monitoring and regulating the price of a financial asset is a primary function of the capital market. Favourable news for a company hikes its stock prices, whereas negative news is perceived as a setback leading to a drop in its share. The system tries to prevent intentional malpractice or foul play that may lead to these changes.

Features of Capital Market

The various features of the capital market are as follows –

No entry or exit barriers

Investment opportunities are available to everyone without entry restrictions or exit hindrances. Investors may enter the market whenever they wish and exit as they feel right. It creates a system balance with plenty of buyers and sellers.

Utilisation of savings

Capital market motivates and helps channelise idle savings to investment, which pays returns and boosts the economy.

Multiple opportunities for investors

An investor may choose from a bouquet of investment options. High-risk investments are generally associated with higher growth potentials, whereas investments in bonds and securities are safer.

Source of regular income

The capital market allows individuals to invest in shares and earn dividends, which generate regular income.

Tax benefit

Investment in stock markets leads to tax benefits at times.

Wealth creation

Investment is aimed solely at wealth creation as performed by the capital market. It also helps in long-term investment.

Retirement benefits

Pension or superannuation funds are a product of the capital market.

Conclusion

With our country growing as one of the fastest global economies, the capital market has gained tremendous momentum. Extensive knowledge in the field can help exploit the growing employment opportunities in the sector. Enrolling in a capital market course can be the best step towards that goal.

The Advanced Management Programme in Financial Services and Capital Markets by Imarticus offers candidates an interactive learning environment with renowned faculty helming the course. This IIM Lucknow finance course spans 11 months. It provides a 5-day campus immersion allowing students to attend on-campus classes, master classes from industry experts, and capstone projects on an industry-relevant curriculum.

Visit the official website of Imarticus for more course-related details.

Capital Asset Pricing Model (CAPM)

Posted on August 3, 2023April 2, 2024 by Imarticus Learning

Data or numbers are quite important for a company, whether to project revenue or estimate costs. Thus to ensure success, any company needs to analyse its numbers properly. Financial modelling is one tool that helps represent a company’s data, past, present and even predicted future. It is used for accurate decision-making. Executives can use this tool for cost and profit estimation of any new project.

One popular financial modelling tool is CAPM or Capital Asset Pricing Model, often used in corporate finance. It helps to understand the relationship between market fluctuations and the risk posed by an asset or security, like a stock.

The projected employment growth for financial analysts is 9% between 2021 to 2031, thus making it an ideal career choice. If you want to become a financial analyst, then this is the correct time to take up a financial analysis course. Gain a basic understanding of a few financial models before embarking on a journey to become a financial analyst.

This article examines the CAPM model, its components, working, benefits, drawbacks and so on.

Capital Asset Pricing Model: What Is It?

Every investment comes with a risk and a return. The Capital Asset Pricing Model helps to understand this very relationship between investment risks and expected returns. It helps estimate the probable investment returns and determine the security or stock prices.

CAPM assessment demands a thorough understanding of unsystematic and systematic risks. The model was designed in the early 1960s primarily to estimate systematic risk, a risk which an institution can not avoid. For instance, risks related to inflation, recession, exchange rate, interest rate, etc.

However, unsystematic risks are those related to investments in specific equities or stocks and are thus not regarded as huge threats. These risks are shareable in the general market. Thus, CAPM helps forecast the success or failure of investment by analysing the systematic risks.

CAPM Assumptions

Here are the assumptions of the CAPM Model:

A diversified portfolio managed by investors
Investors will lend and borrow at a risk-free return rate.
A perfect capital market where every security is valued correctly.

CAPM Formula

Here is the formula for the Capital Asset Pricing Model assessment:

Ra = Rf + Be x (Rm – Rf)

Where,

Ra denotes the expected rate of return
Rf denotes the risk-free return rate
Be is the beta factor of the transaction
Rm – Rf denotes the market risk premium

What Are the Various CAPM Components?

Read this section to find out more about each CAPM component.

Expected rate of return

The expected rate of return is the amount the investor will fetch from investing in an asset. It is based on multiple factors like beta, market risk premium, etc. It’s a long-term presumption about how any investment can roll over in its lifetime.

Risk-free return rate

A risk-free return rate denotes money’s value over time. It is measurable in terms of the yield generated by a 10-year-old government bond of the United States. U.S.-based securities are usually taken as a baseline for this component since it’s highly improbable that the U.S. government would default on payment. Thus, no payment default is synonymous with minimal risks for the investors.

Beta

Beta measures the volatility of any stock, equity, investment, or asset. It provides an idea about a stock’s risk by analysing its price fluctuation concerning the overall investment market. In other words, the beta factor shows an asset’s sensitivity towards market fluctuations.

Sensitive stocks have incredibly high beta and are thus volatile, while a more stable asset will have low beta and will be less volatile. Measured in number, 1 is the benchmark. Any stock having a beta less than 1 is more stable than market fluctuations and is thus less volatile.

Assets with a beta of more than 1 are less stable than market fluctuations and more volatile. Stocks with negative beta values have an inverse relationship with fluctuations in the market.

Market risk premium

A market risk premium is the investor’s reward for taking a riskier investment rather than opting for a low or zero-risk one. Assets, stocks, or investments with more significant risks have a higher market risk premium than the ones with lesser risks.

CAPM Calculation Example

Here’s an example to understand CAPM calculation better.

Let’s assume that an investor plans to invest in an equity valued at ₹100 per share today. It generates an annual dividend of 3%. Let us further assume that the beta here is 1.3, and 3% is the risk-free rate. We also assume that the investor predicts the market value to soar at 8% per year.

Thus, the expected rate of return = 3% + 1.3 × (8%−3%) = 9.5%

What Are the Advantages of Using CAPM?

The advantages of using CAPM are as follows:

Easy to use because of the simple formula.
Eliminates the assumption of unsystematic risks and only considers systematic risks. It indicates the reality since most investors keep a diversified portfolio.
The relationship between return and market risks has been derived theoretically after testing and empirical research.

What Are the Shortcomings of CAPM?

There’s hardly a doubt that CAPM is a highly effective model. However, this effectivity is also paired with the following drawbacks:

The risk-free return rate can fluctuate in a few days, while the model considers short-term securities. This is a crucial flaw.
Beta determination can be time-consuming and challenging at times.
The unrealistic assumption is that the investors can lend or borrow at the same rate as the government.

Conclusion

Finance professionals must have a thorough understanding of financial modelling tools to help them examine the various financial aspects of an organisation. Enrol in a financial analysis course to upskill and launch a successful career as an investment banker or financial analyst.

The Financial Analysis Prodegree offered by Imarticus in collaboration with KPMG is a 4-month course focused on helping learners secure a career in financial analysis, investment banking, corporate finance, and various other financial sector. Delivered by industry practitioners, the course offers 360-degree learning with industry certifications.

Explore Imarticus Learning to learn more.

Related Post:How To Become A Financial Analyst With No Experience?

Top Finance Certifications to Pursue in 2023

Posted on August 2, 2023November 17, 2023 by Imarticus Learning

In today’s fast-paced and competitive world, acquiring specialised knowledge and skills in finance has become more important than ever. Whether you are a recent graduate or a seasoned professional looking to enhance your career prospects, finance certifications offer a fantastic opportunity to stay ahead in the ever-evolving financial landscape.

In this blog, we’ll explore a diverse range of online finance certification courses, helping you make informed decisions about which certification aligns best with your career goals.

List of online finance certification courses

Financial Analysis Prodegree In Collaboration With KPMG

Offered by Imarticus Learning, this course helps build a solid career in finance while strengthening your investment banking skills as well.

This is a 120-hour skill-building programme being offered by Imarticus which will help you to reignite or transform your career. With concepts like financial modelling training, financial statement analysis, equity research, valuation, transaction execution, and Microsoft Office applications, you can prepare to become a part of future industry leaders.

Certified Investment Banking Operations Professional Course

The Certified Investment Banking Operations Professional (CIBOP) program offered by Imarticus is a comprehensive course designed to equip participants with the necessary knowledge and skills to excel in investment banking operations.

The course covers various aspects of investment banking operations, including trade lifecycle, settlements, reconciliation, risk management, financial modelling, and regulatory compliance.

Through practical training and real-world case studies, participants gain hands-on experience, making them industry-ready for a rewarding career in the financial services sector.

Certified Management Accountant Course

The Certified Management Accountant (CMA) course is a reputed program designed to develop finance professionals with advanced skills in management accounting and financial management. The course covers a wide range of topics, including cost management, performance measurement, financial planning, analysis, and decision-making. With practical training and an industry-focused curriculum, the CMA program prepares individuals to become strategic financial professionals capable of fueling business performance and making informed managerial decisions.

Association of Chartered Certified Accountants, UK

The Association of Chartered Certified Accountants (ACCA) is an internationally recognised qualification in across 179 countries that prepares individuals to become skilled and competent accountants. The program covers a comprehensive range of accounting and finance topics, including financial reporting, taxation, audit, and business analysis.

Through rigorous training and practical exposure, participants acquire the expertise needed to succeed in the global business landscape and pursue rewarding careers as qualified ACCA professionals.

Professional Certificate in Fintech

The Professional Certificate in Fintech jointly offered by SP Jain School of Global Management and Imarticus Learning provides participants with a comprehensive understanding of the rapidly evolving fintech landscape. Through this course, individuals gain insights into disruptive technologies like blockchain, AI, and data analytics, along with their applications in finance.

The program’s hands-on approach and industry-aligned curriculum enable participants to stay ahead in the fintech domain, equipping them with valuable skills and knowledge to thrive in the fintech industry and drive innovation in financial services.

Opportunities after enrolling in finance certification courses

The online financial certification courses will provide you with the required skills and knowledge, having an impact both on your personal as well as professional career. These courses will help you to understand the business requirements while helping you to plan and manage corporate transactions and assets.

Some of the career opportunities that you’ll be potentially rewarded with post-course completion include:

Financial Analyst
Actuary
CA
Securities Trader
Investment Banker
Corporate Controller

..and so much more! All you need is a strong set of skills and an equally strong resume, which you’ll have after enrolling in any of the courses mentioned above. With the right course, skill set and ample experience, you’re ready to take over the world of finance with your finesses!

Equity Capital Markets and Initial Equity Offerings (IEOs)

Posted on August 2, 2023 by Imarticus Learning

Within the broader capital market, the equity capital market is a platform where financial institutions, companies, and investment banking engage in trading financial instruments and seek to raise capital for businesses.

Unlike debt markets, equity capital markets carry an elevated level of risk, which, in turn, offers the potential for increased returns.

Instruments Traded in the Equity Capital Market

Equity capital is obtained by selling a portion of ownership rights to a company’s assets in exchange for funds.

The value of equity capital is determined by the company’s existing assets and business performance. Instruments traded in the equity capital market include:

Common shares

Common shares represent ownership capital, entitling shareholders to dividends from profits. Common shareholders have residual claims to income and assets after preferred shareholders and bondholders.

Private equity

Due to limited access to bank capital or public equity markets, startups and smaller companies commonly use equity investments through private placements. Investors are commonly institutional investors or wealthy individuals.

Global Depository Receipts (GDRs):

These are negotiable receipts issued against shares of foreign companies by financial institutions in developed countries.

Futures

Futures are exchange-traded contracts for buying/selling assets at predetermined future dates and executed through clearinghouses, acting as intermediaries and ensuring contract compliance.

Options

Options are contracts providing the right (not obligation) to buy or sell underlying assets by a specified date, with a premium paid. Call options grant the right to buy, while put options grant the right to sell.

Functions of an Equity Capital Market

The various vital functions equity capital market performs are:

Facilitating issue marketing: The equity capital market is crucial in promoting and marketing new securities issues to potential investors. It involves creating awareness, generating interest, and distributing information about available investment opportunities.
Managing issue distribution: The market facilitates the issuance of securities by companies or other entities to investors. It connects buyers and sellers, ensuring the efficient transfer of ownership rights and the smooth execution of transactions.
Allocating new issues: For new securities offerings, such as IPOs or private placements, the equity capital market helps distribute these newly issued securities to interested investors. It ensures a fair and efficient distribution of the securities through appropriate pricing and relevant allocation strategies.
Supporting initial public offerings (IPOs): The equity capital market provides a platform for companies to go public through IPOs. It assists in listing a company’s shares on a stock exchange, enabling it to raise capital from public investors and transition from private to public ownership.

Advantages and Disadvantages of Raising Capital in Equity Markets

Advantages of Equity Financing

Unburdened assets

Equity investors do not require collateral for their investments. It means the company’s assets remain unencumbered and can secure loans if needed.

Additionally, assets acquired using equity capital can be used as collateral for future long-term debt.

Freedom from financial commitment

Unlike lenders who impose financial commitment to ensure loan repayment, equity investors do not impose such restrictions. Instead, they rely on governance rights to protect their interests.

It grants the company greater flexibility in using funds without the constraints of financial contracts.

Disadvantages of Equity Financing

Investor expectations

Equity investors need more certainty regarding profits, business growth, and dividends than debt holders. Consequently, equity investors expect a higher return on their investment to compensate for the increased risk.

Regulatory compliance and governance rights

Equity financing is subject to legal regulations and structures governing financing transactions.

Equity investors possess financial rights, including entitlement to dividends and company sale proceeds. They also hold governance rights related to board elections and significant business decisions.

These rights dilute ownership and control, leading to increased oversight of management decisions.

What Is an Equity Offering?

An equity offering involves publicly selling a company’s shares to raise capital. It can be an IPO, SPAC IPO, FPO, or Secondary Offering. The primary objective remains capital generation, enabling companies to pursue acquisitions, fund growth initiatives, or manage debt.

Types of Equity Offerings and Financing Types

Some of the common equity offerings are:

At-the-market offering

An at-market offering occurs when a company sells its shares in the open market through an equity dealer. It is typically executed over time, introducing uncertainty regarding the funds raised.

Bought-out deal

A bought-out deal involves an investment bank purchasing the entire equity offering from the company and selling it to investors gradually. This method saves the issuing company costs and time associated with a public issue.

Direct public offering

In a direct public offering (DPO), a company sells its equity directly to the public without involving an investment bank. This approach differs from most equity offerings relying on intermediaries.

Exchangeable security

Exchangeable securities are equity instruments convertible into another security in the future, usually at a predetermined price. They enable companies to raise capital without issuing new equity outright.

Pre-IPO financing

Pre-IPO financing entails raising funds from investors before a company goes public. This financing is often used for growth or to cover expenses related to the IPO process.

Public offering

A public offering involves the sale of a company’s equity to the public. It can occur through an IPO or a secondary offering.

Reverse merger

In a reverse merger, a private company acquires a public company, allowing it to list its shares on a stock exchange without undergoing an IPO.

Underwritten public offering

Unlike a self-managed equity offering, an underwritten public offering occurs when a company sells equity to the public with an investment bank’s assistance.

Underwriting

Underwriting refers to the support provided by an investment bank to help a company sell equity to the public. It involves determining the equity price and facilitating the sale to investors.

Conclusion

The equity capital market (ECM) is a critical component of the capital market, facilitating financial instrument trade and capital-raising for enterprises. Investment banking professionals in ECM groups handle transactions such as initial public offerings and equity offerings.

Equity financing offers diverse funding options and long-term growth potential but dilutes ownership and lacks tax advantages.

Consider enrolling in Imarticus Learning’s BCom in Investment Banking and Professional Accounting for training in Investment Banking, financial analysis and related areas.

Gaining expertise in investment banking is one of the promising career options after 12th. Visit Imarticus Learning for more information.

What is Risk Management in Finance?

Posted on August 2, 2023April 2, 2024 by Imarticus Learning

In life, there is no reward without risk. They are two sides of the same coin. In finance, too, there is a return only if you are willing to accept the risks that come along with it. But how much should you be willing to risk for a reward? Should you go in blind or without a plan of action? These questions should be at the forefront of your mind.

Cue: Risk Management

The concept of risk itself is evolving with changing times and its new demands. As the world becomes more connected, the potential of risk exposure magnifies. The Global Financial Crisis of 2007-2008 showed us the flip side of risks in the globally-connected financial world. It is no wonder that risk management has become an integral part of the curriculum in financial management and even CFO Executive Programs.

If you want to protect your organisation’s finances without giving up opportunities, this article is just what you need!

Read on to learn more about risk management in finance and take the first step to row your organisation to financial success.

What is Risk?

Put simply, the risk is the possibility of exposure to danger, failure, loss or other adverse circumstances. In the financial world, the word is more nuanced and focuses on investment risk. Risk in finance is the possibility that the actual outcome or return on investment differs from the expected or estimated outcome or return. It may include the probability of partial or total loss on the investment.

Any business or organisation faces risks from the get-go. These may include factors like market volatility, inflation, recession, bankruptcy, natural disasters, etc. However, failure or loss from risk is not inevitable. Risk management is at the core of any strategy to overcome the hurdles of risk exposure in finance.

What is Risk Management?

Risk is generally viewed negatively as something that has the potential to harm. But when risk and reward go together, like in finance, it becomes essential that we learn how to strategise to avoid harm. Risk management in finance allows you to do just that. Risk management is the strategic process of identifying and analysing potential risks and developing investment decisions that accept or mitigate them.

Uncertainties of investments are at the heart of financial risks that an organisation has to endure. Different asset classes come with their risks and rewards. You often hear, “Higher the risk, the higher the reward.” However, a sound risk management strategy can provide a competitive advantage. Risk management should be customised to the organisation’s goals and risk tolerance.

There are three steps of risk management in finance:

Identification of risk: This step involves identifying and assessing potential risks of investing.
Analysis and evaluation of risk: It involves determining the probability of a risk event occurring and its potential outcome. They are evaluated to establish their magnitude and impact.
Risk mitigation: It involves the development of a systematic plan comprising methods and options to mitigate the potential risks from affecting the organisation’s goals, investments and activities.
Risk monitoring: Risk management is dynamic and should be flexible to account for changing situations. Risks have to be continuously monitored so necessary steps can be taken to overcome them.

Risk Management Strategies

Risk can and should be managed. Rather than leaving the outcome to fate, adopting risk management strategies can help you get the rewards you seek from your investment.

Looking for risk management strategies from the winner’s playbook? Here you go.

Risk Avoidance:

The safest bet is not to play at all. You can cut out the probability of risk completely by choosing the safest assets.

Risk Retention:

This strategy involves accepting that risks come with the territory and are impossible to eliminate.

Risk Sharing:

Sharing risks between two or more parties can help weather the probability of losses by spreading its impact. As they say, a fist is stronger than a finger.

Risk Transferring:

Transferring risk to a third party, like an insurance company, through contractual means is another risk management technique.

Risk Reduction:

This strategy involves minimising the losses and preventing them from spreading rather than completely eliminating the risk. It includes methods like diversification of investment.

Types of Risk Management

Risk management can be broadly classified into two types. They are:

Passive Management:

Passive management generally mimics broader market returns. It involves following a specific market index, like the Nifty50, and identifying asset classes that have suffered a negative return in comparison through a measure known as drawdown. The beta risk of an asset is measured based on covariance.

A beta value below 1 means the asset is less volatile than the market and will decrease return capability and vice versa. Passive risk managers can increase or reduce their beta risk exposure by adopting strategies that will, in turn, increase or reduce their returns.

Active Management:

Active management involves adopting strategies that strive to outperform broader market returns. It exposes investment to alpha risks that go beyond the market risks. Here alpha is the measure of excess risk. Seasoned or high-risk investors engage in active management due to the risks involved. It includes strategies like position sizing, fundamental analysis, technical analysis, leveraging stock, sector or country selection, and more!

Conclusion

To reap rewards, you need to take risks. But risking it all without thought is not the strategy of the masters. Risk management is critical in today’s climate of financial risk exposure. It allows you to prepare for the uncertainties of risk strategically. You can protect the interests of your investment if done right.

If you are a Chief Financial Officer (CFO) (or aspiring to be one), you (will) captain the ship of your organisation’s financial well-being. The Postgraduate Certificate Programme For Emerging CFOs from Imarticus is the CFO training course you have been waiting for!

Created by the premier institute IIM Indore, this 12-month CFO training program online will equip you with the skills to master your role as CFO and spearhead your organisation’s financial growth.

Fraud detection in credit card transactions

Posted on August 2, 2023April 5, 2024 by Imarticus Learning

In today’s globally interconnected world, the realm of financial transactions, though seemingly secure, harbors a menacing specter – the ominous threat of credit card fraud. Operating stealthily, it preys upon unsuspecting victims, wreaking havoc on their lives and finances.

As technology progresses at a rapid pace, the war against credit card fraud escalates in intensity. In this ongoing battle, the realm of fintech emerges as a pivotal force, combining the domains of finance and technology to combat this pervasive menace. Embarking on a career in fintech empowers professionals to tackle these threats on a profound and professional level.

Types of Credit Card Fraud

Here is a list of different types of credit card fraud:

Lost or Stolen Cards: This sort of fraud occurs when the physical credit card is lost, lost, or taken, and another person utilises it without the proprietor’s approval. The fraudulent individual can make buys, pull out money, or manage different exchanges until the card is accounted for as lost or taken.
Skimming: Skimming involves catching credit card data utilising a gadget introduced on an ATM, installment terminal, or other card perusers. The gadget is intended to peruse and store the card’s attractive stripe information, permitting fraudsters to make fake cards or utilise the taken data for online exchanges.
Phishing: Phishing is a method where fraudsters stunt people into uncovering their credit card subtleties and other individual data. They frequently send fraudulent messages, make counterfeit sites, or settle on telephone decisions professing to be genuine associations like banks, retailers, or government offices. The objective is to delude casualties into giving their credit card numbers, passwords, or other delicate information.
Information Breaks: Information breaks occur when programmers gain unapproved admittance to an organisation’s data set or organisation foundation and take credit card data alongside other individual information. These breaks can happen to huge partnerships, monetary establishments, or even private companies that store client installment subtleties. The taken information is then sold on the dim web or utilised straightforwardly for fraudulent purposes.
Card-Not-Present (CNP) Fraud: CNP fraud occurs when a credit card is utilised on the web or for phone buys where the actual card is absent. Fraudsters get credit card data through different means and use it to make unapproved exchanges. This kind of fraud is especially difficult to forestall since the check cycle principally depends on the card subtleties as opposed to actual presence.
Account Takeover: Record takeovers occur when fraudsters gain unapproved admittance to an individual’s credit card account by taking login certifications or individual data. When they have command over the record, they can make unapproved exchanges, change contact data, or request extra cards for their utilisation.
Fake Cards: Fake cards are made utilising taken credit card data. Fraudsters encode the taken information onto clear or modified credit cards, repeating the first card’s subtleties. These fake cards are then utilised for fraudulent exchanges until the fraud is distinguished.
Data fraud: Wholesale fraud involves the fraudulent utilisation of somebody’s very own data, including credit card subtleties, to lay out new credit accounts, make buys, or manage monetary exchanges. This kind of fraud can cause critical monetary and reputational harm to the person in question.

Circumvention of Credit Card Fraud Using Fintech

It is critical to take note that fraudsters are continually advancing their strategies, and new techniques might arise over the long run. Remaining informed about the most recent fraud patterns and playing it safe can assist people and associations in alleviating the dangers related to credit card fraud.

Here is how fintech helps in the detection of credit card fraud:

Real-time exchange checking:

Algorithmic examination: Algorithms are used in fintech technologies to analyse credit card transactions in real-time.
Assessment of the risk factors: Each transaction’s various risk factors are evaluated by these algorithms.
Detection of suspicious activity: A transaction that is flagged as suspicious can either be automatically blocked or investigated further.

AI and man-made brainpower (artificial intelligence):

Training with data: Fintech organisations train AI models on enormous datasets of genuine and fake exchanges.
Detection of patterns and anomalies: Patterns and anomalies that could indicate fraudulent activity can be identified by the trained models.
Versatile learning: The calculations can adjust to advancing extortion designs, further developing location precision over the long haul.

Analytics of behavior:

Establishing the baseline: A cardholder’s typical spending and usage patterns are established by fintech platforms.
Deviation identification: Alerts and additional security measures are triggered when there are deviations from the baseline, such as unusual transaction amounts or locations.
Assessment of risk: Based on previous data, behavioral analytics aid in determining the transaction’s risk.

Geolocation and gadget profiling:

Analyses of location: Fintech innovations break down the geological area of an exchange and contrast it with the cardholder’s typical examples.
Unusual detection of a location: Potentially suspicious transactions are flagged when they originate from a foreign location.
Particulars of the device: Gadget profiling inspects qualities like IP address, gadget type, and perusing conduct to recognise expected extortion.

Tokenisation and encryption:

Tokenisation: Tokenisation is a technique used by fintech technologies to substitute unique tokens without intrinsic value for actual card information.
Information insurance: Tokenisation limits the gamble of information robbery since the tokens hold no delicate data.
Encryption: When data is transmitted during online transactions, encryption ensures that it remains private and secure.

Data sharing and collaboration:

Collaboration among businesses: Banks, payment processors, and other financial institutions collaborate with fintech companies.
Information and bits of knowledge sharing: The sharing of data and insights into fraud patterns is made possible by collaboration.
Complete misrepresentation identification: The creation of more robust fraud detection systems is made possible by the sharing of information and collective intelligence.

Upgraded verification and biometrics:

Biometric incorporation: Biometric authentication methods like facial recognition or fingerprint recognition are incorporated into fintech technologies.
Character check: Biometrics add an additional layer of assurance in confirming the personality of the cardholder.

Conclusion

You can opt for a career in fintech if you wish to be a part of this highly promising domain that combines financial services and technology. To enhance skills in fintech and other related areas, professionals can enrol in a fintech course such as the Professional Certificate in Fintech offered by Imarticus in collaboration with the SP Jain School of Global Management.

US CMA Exam Parts Explained: What to Expect in Each Section

Posted on August 1, 2023April 5, 2024 by Imarticus Learning

Are you ready to take your financial career to the next level?

You should consider pursuing the prestigious Certified Management Accountant (CMA) qualification. It proves your expertise in financial management and making strategic decisions.

Getting this qualification can open up many opportunities and recognition in the business world. It all begins with the challenging CMA test.

Don’t worry! We are here to help you navigate the exciting but demanding CMA test. We’ll explain each section in detail so you know what to expect. This blog is your ultimate companion in mastering the field of Finance and will help you understand CMA exam segments.

This guide will cover everything about the CMA exam, from its content and structure to your expectations. We’ll explore financial reporting, planning, analysis, control, and strategic financial management. We want to ensure you feel well-prepared and confident on the test day.

Let’s start this exciting journey together and uncover the treasures that await in each section of the US CMA exam. Get ready for an extraordinary experience where complexity and variety come together to shape your success!

What can candidates expect in each section of the US CMA exam?

Unlock the extraordinary value CMA holders add to any company with their unrivaled strategic planning know-how!

A certified management accountant makes a median income of 62 percent more and a median total pay of 67 percent higher than a non-CMA. The CMA credential will serve as your compass, pointing you toward the peak of professional excellence, whether you wish to take your current job to greater heights or extend your wings and explore new career vistas.

As you begin this exciting CMA adventure, be prepared to dig deeply into the CMA Exam’s core concepts. Your hidden weapon will know it inside and out, enabling you to meet any problem head-on! So be ready and start the CMA journey! You are about to enter a world of limitless possibilities.

Empowering yourself with CMA test preparation tips is crucial if you’re preparing to take the exam. Your study method can greatly impact your path to becoming a Certified Management Accountant. Adopt a well-organized study schedule, allot enough time to each session, and concentrate on comprehending the intricate details of the exam’s subject matter.

To exchange information and thoughts, look for trustworthy study materials, and consider joining study groups or online forums. Reviewing previous exam questions and taking mock exams can increase your confidence and acquaint you with the examination format. You’ll be well-equipped to pass the CMA test and open up a world of prospects in the financial industry with the appropriate approaches and dedication.

Prepare for the exciting CMA Exam, which consists of two engaging sections Financial Planning, Performance, and Analytics and Strategic Financial Management. You are given a challenge of 100 multiple-choice CMA Exam questions in each section, and you are then given an exciting chance to demonstrate your abilities in two 30-minute essays. With 10–12 written answers or calculation problems based on actual business circumstances, these essays will put your skills to the test.

Let’s speak about time now. For the CMA Exam, you will have a total of four hours. Three of these hours will be used to complete the multiple-choice questions, and the final hour will be used to finish the essays. It’s important to remember that the multiple-choice portion comes first, and you must receive at least a 50% score there to go on.

The scores you receive on each part’s multiple-choice questions and essays together make up your CMA Exam score. Interestingly enough, you can make a mistake on one of the section types and succeed on the test. So, when you start your voyage, let your confidence fly!

CMA Exam Part 1 – Financial Reporting, Planning, Performance, and Control

The average US CMA exam passing rate for Part 1 has been approximately 45% over the previous few years, making it challenging.

This difficulty may be brought on by the fact that CMA accounting candidates could not fully understand what to expect from each test segment. Imagine a four-hour journey with 100 multiple-choice questions, two essay questions, and “scenarios.” These scenarios put your skills to the test engagingly by requiring written and quantitative replies.

Prepare yourself for encountering six intriguing things as you explore CMA Part 1’s domain of influence:

External Financial Reporting Decisions – 15%
Planning, Budgeting, and Forecasting – 20%
Performance Management – 20%
Cost Management – 15%
Internal Controls – 15%
Technology and Analytics – 15%

CMA Exam Part 2 – Financial Decision Making

The Institute of Management Accountants (IMA) recommends preparing for this portion of the CMA test for around 130 hours over 8 to 11 weeks, somewhat fewer than the 170 hours advised for Part 1.

However, sticking to this study schedule could be difficult for full-time professionals. Do not worry; the recommended period for each portion is 16 weeks, enabling you to manage your job and study successfully.

Let’s start this four-hour test now. You’ll encounter 100 fascinating multiple-choice questions and two captivating essay situations. Your knowledge will shine even more brightly in the fascinating essay component of the test if you get at least 50% on the multiple-choice portion.

Within CMA Part 2, you will explore six captivating topics, each offering unique insights into the world of Strategic Financial Management:

Financial Statement Analysis – 20%
Corporate Finance – 20%
Decision Analysis – 25%
Risk Management – 10%
Investment Decision – 10%
Professional Ethics – 15%

The Final Words

As we end this blog post, you are now well-equipped with priceless insights into the exciting world of the US CMA Exam.

You now understand what lies ahead, from the thrilling voyage of Part 1, where you’ll experience Financial Planning, Performance, and Analytics, to the intriguing challenges of Part 2, delving into Strategic Financial Management.

Imarticus Learning offers a unique benefit to all CMA certification participants – guaranteed pass protection. Only half of the course price can be paid upfront when enrolling in the program; the other half must be paid after passing the CMA® test. This ensures pupils receive the encouragement and motivation they need while preparing.

Remember that while the road to success may be complicated, you have the knowledge and commitment to overcome obstacles. Accept the challenge of the CMA Exam and let it serve as a launching pad for a world of opportunity.

7 Key Skills Required for a Chief Financial Officer Leadership Program

Posted on July 25, 2023April 3, 2024 by Imarticus Learning

Are you prepared to learn the keys to being a Chief Financial Officer (CFO) success? Imagine managing a vibrant corporation, directing its financial choices with unshakable knowledge and strategic aplomb. There is more to such a distinguished position than balance sheets and figure crunching. It necessitates a rare collection of abilities that go far beyond financial expertise.

This post will reveal the seven crucial skills that can catapult you to success in a Chief Financial Officer Leadership Program. We will dig into the CFO skills that will set you apart from the competition, from financial savvy to visionary leadership, from risk management to cutting-edge technology.

A Chief Financial Officer (CFO) is crucial in today’s dynamic business environment. CFOs are responsible for overseeing the financial aspects of an organization and providing strategic guidance to drive growth and profitability. To excel in this position, CFOs need a diverse set of skills that go beyond financial expertise.

What is a Chief Financial Officer?

A Chief Financial Officer (CFO) oversees a firm’s financial operations and actively participates in budgeting and financial reporting. They play a significant role in strategic planning; they collaborate with other stakeholders to develop and implement corporate goals while closely observing key performance indicators.

A corporation or organization’s chief financial officer (CFO) is an executive who is given primary responsibility for managing the business’s finances, including financial planning, risk management, record-keeping, and financial reporting. In several industries, data analysis falls under the purview of the CFO. In addition, the position entails serving as the CEO’s strategic adviser, leading teams of other workers, and liaising with other parties on business finances.

Responsibilities:

A CFO’s duties include managing a company’s finances and making choices based on its financial objectives and status.
The chief financial officer’s duties include managing the company’s cash flow and capital structure and leading and directing the finance and accounting staff.
The CEO and other executives may get strategic advice from the CFO as part of their duties, and the CFO may also work with the company to assist in its expansion and success.

What are the key skills for a Chief Financial Officer leadership program?

Here are some Key skills for CFO leadership:

Financial Acumen

A strong foundation in finance is a fundamental requirement for any strategic CFO skills. It is essential to have a deep understanding of financial principles, accounting practices, and financial analysis. CFOs should be able to interpret complex financial data and make informed decisions based on the organization’s financial health. This skill helps CFOs in formulating effective financial strategies and driving sustainable growth.

Strategic Thinking

CFOs play a pivotal role in shaping the strategic direction of an organization. They need to think critically and envision the company’s long-term financial goals. Strategic thinking involves assessing market trends, identifying potential risks, and evaluating investment opportunities. By aligning financial strategies with the overall business objectives, CFOs contribute to the success and competitiveness of the organization.

Leadership and Team Management

As leaders within the organization, CFOs need strong leadership and team management skills. They should be able to inspire and motivate their teams, foster collaboration, and build a culture of accountability. By developing high-performing teams, CFOs can enhance financial performance and drive organizational success.

Risk Management

In today’s business landscape, managing risks is vital for sustainable growth. CFOs need to have a comprehensive understanding of risk management principles and practices. They should be skilled in identifying potential risks, implementing risk mitigation strategies, and establishing robust internal controls. By effectively managing risks, CFOs protect the organization’s financial well-being and ensure compliance with regulatory requirements.

Technology and Data Analytics

In the digital transformation era, CFOs must be well-versed in technology and data analytics. They should stay updated with the latest financial software, tools, and emerging technologies relevant to their industry. CFOs should leverage data analytics to gain insights into financial performance, optimize processes, and support data-driven decision-making. Proficiency in utilizing technology and data analytics enables CFOs to drive innovation and improve operational efficiency.

Communication and Influencing Skills

CFOs often interact with various stakeholders, including board members, executives, investors, and employees. Therefore, effective communication and influencing skills are paramount. CFOs should be able to present complex financial information clearly and concisely, tailor their messages to different audiences, and influence key decision-makers. Strong communication skills enable CFOs to build trust, negotiate effectively, and drive consensus on financial matters.

Adaptability and Change Management

The business landscape is constantly evolving, and CFOs need to be adaptable to change. They should be able to navigate through uncertainties, respond to market dynamics, and lead organizational change. CFOs should embrace innovation, stay updated with industry trends, and proactively identify growth opportunities. By embracing change and leading transformation, CFOs can position their organizations for long-term success.

The Final Words

A Chief Financial Officer requires diverse skills to excel in their role. While financial understanding forms the foundation, strategic thinking, leadership, risk management, technology proficiency, communication, and adaptability are equally important.

A Finance management program encompassing these fundamental skills can empower CFOs to drive financial success, shape organizational strategies, and contribute to overall business growth. By continuously developing these skills, CFOs can navigate the complexities of the modern business landscape and impact their organizations meaningfully.

A specialized finance curriculum called “Postgraduate Certificate Programme for Emerging CFOs” was created with Imarticus Learning and IIM Indore. This intense 12-month IIM Indore online course offers a thorough grasp of financial services and management and is designed for seasoned professionals with at least five years of experience.

In collaboration with the distinguished faculty at IIM Indore, Imarticus Learning offers a CFO training program that will prepare you for the coveted position of Chief Financial Officer (CFO). This innovative curriculum gives you the key abilities needed for the changing financial scene by emphasizing strategic thinking, analytical acumen, and financial technology expertise.

Why choose PGDM In FinTech from Delhi School of Business

Posted on July 24, 2023April 2, 2024 by Imarticus Learning

In today’s rapidly evolving financial landscape, the intersection of finance and technology has given rise to a dynamic field known as FinTech. As the demand for professionals equipped with financial and technological expertise continues to grow, pursuing a Post Graduate Diploma in Management (PGDM) in FinTech has emerged as an attractive option. In this blog, we will explore the reasons why choosing the PGDM in FinTech program at Delhi School of Business can be a transformative step towards a successful career in this thriving industry.

Overview of FinTech

Fintech refers to businesses adopting new technology to compete with conventional financial techniques in the delivery of financial services. The term is a portmanteau of “financial technology” and “financial technology.” The “ABCD” (four essential aspects) of fintech are viewed as being comprised of big data, cloud computing, blockchain technology, and artificial intelligence. Examples of technology intended to increase financial service accessibility for the general population include mobile banking, investing, borrowing services, and cryptocurrencies.

FinTech, a portmanteau of “financial technology,” refers to the innovative use of technology to deliver financial services more efficiently. It has revolutionized the financial industry by providing solutions that enhance convenience, accessibility, and security. The growth and impact of FinTech have been unprecedented, disrupting traditional banking, payments, lending, and investment sectors. Its significance lies in democratizing financial services, empowering individuals and businesses worldwide, and fostering financial inclusion.

Emerging Trends and Opportunities in the FinTech Sector

The FinTech sector is characterized by constant innovation and evolution. Several emerging trends, such as blockchain, artificial intelligence, machine learning, and data analytics, are shaping the future of finance. These trends create exciting opportunities for professionals to leverage technology and transform traditional financial practices. The PGDM in FinTech program equips students with the knowledge and skills to harness these trends and thrive in this dynamic industry.

Is FinTech MBA worth it?

PGDM, or Post Graduate Diploma in Management, is a comprehensive management program that provides students with a strong foundation in various aspects of business administration. The specialization in FinTech education within the PGDM program focuses on bridging the gap between finance and technology, preparing students for the unique challenges and opportunities in the FinTech domain. The curriculum is designed to develop a deep understanding of financial concepts, technological advancements, and their integration to drive innovation in the financial sector. Here are more reasons why is FinTech MBA is worth it.

Strong Industry Connect

Delhi School of Business (DSB) has established strong ties with prominent FinTech companies, ensuring students receive industry-relevant education and exposure. Collaborations with leading firms provide students with valuable insights into real-world applications of FinTech. DSB also invites industry experts as guest lecturers and conducts workshops, enabling students to learn from seasoned professionals and gain practical knowledge. Additionally, the program offers internship and placement opportunities with top FinTech firms, facilitating a smooth transition from academia to industry.

Experienced Faculty

The faculty members specializing in FinTech at DSB possess a wealth of industry experience and academic qualifications. They bring a unique blend of theoretical knowledge and practical insights, enhancing the learning experience for students. The faculty’s expertise spans areas such as financial technology, digital banking, blockchain, cybersecurity, and data analytics. Their guidance and mentorship equip students with the necessary skills to confidently tackle the FinTech landscape’s challenges.

Curriculum & Course

The PGDM in FinTech program at DSB offers a well-rounded curriculum that balances core management subjects with specialized FinTech courses. Core courses also include finance, marketing, operations, strategy, and entrepreneurship, providing a holistic understanding of business principles. Specialized courses delve into topics like digital payments, blockchain applications, financial data analytics, and cybersecurity in the financial sector. The program emphasizes practical learning through case studies, simulations, and industry projects, ensuring students acquire hands-on experience and develop industry-relevant skills.

Technological Infrastructure

Delhi School of Business boasts state-of-the-art facilities and resources to support the learning needs of FinTech students. The institution provides dedicated labs and research centres focused on FinTech, equipped with cutting-edge software and tools utilized in the industry. Access to these resources empowers students to experiment, innovate, and stay abreast of the latest developments in the FinTech field.

Industry Exposure and Networking

DSB organizes industry visits and field trips to FinTech companies and organizations to foster industry exposure. This firsthand experience offers students a glimpse into the practical applications of FinTech concepts and allows them to network with industry professionals. Additionally, students actively participate in FinTech conferences, seminars, and workshops, where they can learn from industry thought leaders and expand their professional network. These opportunities are pivotal in preparing students for successful careers in the FinTech sector.

Alumni Success Stories

The PGDM in FinTech program at DSB has witnessed numerous success stories among its alumni. These individuals have achieved remarkable career progression and made significant contributions to the FinTech industry. Their success underscores the program’s effectiveness in providing the necessary knowledge, skills, and networks to excel in this competitive field. Testimonials from these alumni testify to the program’s impact on their professional growth and validate the decision to pursue the PGDM in FinTech at DSB.

Final Words:

The need for qualified FinTech workers will only expand in the coming years as the fintech sector experiences one of the world’s highest growth rates. The course offers a thorough curriculum that covers every facet of FinTech, from the fundamentals of the field to the most recent developments.

Imarticus Learning presents an exciting opportunity to pioneer the world of FinTech with their PGDM in FinTech program. This PGDM In FinTech is designed to empower individuals and equip them with the skills needed to thrive in the rapidly evolving FinTech industry. The curriculum of the PGDM in FinTech program at Imarticus Learning is aligned with industry requirements, ensuring that students gain a comprehensive understanding of crucial industry aspects.

Wait no more, and grab your opportunity to make a career with PGDM in FinTech today!

The Integration of Environmental, Social, and Governance (ESG) Factors in Management Accounting

Posted on July 24, 2023April 2, 2024 by Imarticus Learning

Environment, Social and Governance (ESG) is a framework stakeholders use to understand how an organisation works, risk management policies, and its performance on some ethical and sustainability issues.

The ESG program is implemented to ensure accountability and proper execution of processes and systems to manage the impact of a company. This could vary from how the organisation treats its employees, stakeholders, suppliers and the company’s carbon footprint.

Management accounting is used for creating reports, statements and documents, which assist managers in making better decisions for the performance of the business.

In this article, we will discuss the ESG factors and their implementations.

What is management accounting?

Management accounting makes organisational goals by recognising, measuring, analysing, understanding and communicating information to the company’s managers.

Management of any organisation is responsible for planning, organising, directing and controlling the organisation’s decisions. Management accounting helps in preparing reports for businesses which helps managers create short-term and long-term decisions.

A certified management accountant is responsible for performing the following tasks:

Management accountants can help answer important questions to forecast future trends in business.
Their insights on cost and product availability are important deciding factors when purchasing.
In management accounting, managers create budgets and trend charts, which managers use for allocating resources and money.

What is ESG integration?

ESG is a framework that helps stakeholders understand an organisation’s risk management steps and opportunities regarding sustainability issues.

ESG initiatives are responsible for broadening business sustainability efforts to position companies for long-term success.

ESG integration can be defined as the proper consideration of environmental, social and governance factors in decision-making and investment analysis. The integration of ESG has revolutionised the capital allocation decisions in some of the world’s largest financial companies and asset managers.

Incorporating the ESG factors into investment decisions is necessary for identifying potential risks and opportunities that traditional financial reporting may overlook.

ESG integration could lead to better investment results by mitigating long-term risks and promoting sustainable business practices.

Asset managers and investors have increasingly adopted ESG integration in the investment process. This is because ESG integration has significantly evolved in recent years. This has been driven mainly due to the growing investor demand for sustainable investments.

ESG Factors

These factors include a wide range of environmental, social and governance problems that influence investments’ sustainability and financial performance.

ESG factors can be beneficial in identifying potential risks as well as opportunities for long-term value creation.

Environmental Factors

Any problems related to resource depletion, waste and pollution, climate change, biodiversity and ecosystems are all environmental factors.

Including environmental factors when making investment decisions can help recognise strong environmental practices and overcome potential environmental risks.

Social Factors

Aspects such as labour standards, human rights, community relations, health and safety, diversity, and inclusion come under social factors.

By assessing these factors, investors can identify companies that maintain strong community relations, promote fair labour practices, and have a diverse and inclusive work environment.

Governance Factors

Any issues related to shareholder rights, executive compensation, board structure and composition, risk management and business ethics fall under governance factors.

These factors will give insight into the organisation’s corporate governance practices and help identify possible governance threats and opportunities.

Advantages and disadvantages of ESG

The advantages of ESG integration for companies and investors include the following:

ESG helps attract new customers for extra growth – Customers who consider ESG factors when making buying decisions will seek products and services offered by companies focused on ESG.
Investment returns and sustainability can combine – Sustainability funds can have similar to better returns than traditional funds.
ESG attracts and retains good employees – ESG factors help boost employees’ motivation and increase the company’s overall productivity by giving the employees a purpose.
ESG investing makes companies make positive investment decisions – Companies that take ESG initiatives focus more on environmental problems and ethical practices.
ESG can help costs – When companies incorporate ESG initiatives in their organisation, energy bills, operating expenses and other costs will be reduced over time.

The advantages of ESG integration are as follows:

ESG doesn’t have a ‘one-size-fits-all’ method – The approach to ESG integration that might work for one organisation might not work for another. This makes it difficult to manage ESG initiatives. The need to integrate ESG in daily practices and long-term strategies increases complications.
Unauthentic ESG strategies could backfire – Companies focusing on ESG inconsistently or using it as a means of brand image ploy or disconnecting from their business strategy will likely fail to be successful.
No guarantee of strong stock market performance – Even though there are many success stories, integration of ESG factors does not ensure the good performance of the company’s stocks.
It can be difficult to make a diverse investment portfolio – Investors who are focused on any ESG investment strategy might need help to make a balanced portfolio which aligns with long-term goals.

How to integrate ESG factors

As priorities, regulations and legislations constantly change, the ESG landscape is complex and always evolving. To successfully integrate ESG, it is important to ensure that the ESG factors are used in all corporate strategies.

Organisations can:

Implement company policies for improved diversity and inclusion.
Recognise ESG risks through the supply chain.
Make sure that the company’s objectives include ESG considerations.
Include ESG goals in decisions of executive compensations.
Educate the employees about the need to include ESG in all operations.

Investors can:

Develop an integrated framework for the assessment of ESG risks and opportunities.
State your belief in investment which will guide sustainable investment strategy and embed it throughout the organisation.
Get access to reliable ESG data and leading research.
Employ qualitative analysis to assess industry benchmarks, economic factors, and company strategy and management quality.
Use quantitative analysis for company valuation models, portfolio construction and financial forecasting.

Conclusion

The systematic consideration of environmental, social and governance factors in decision-making and investment analysis is ESG integration.

ESG integrations aim to improve risk management and recognise potential business opportunities that can create long-term value.

Clearing any US CMA exam is very difficult as CMA is one of the most sought-after careers.

If you want to build your career in management accounting, check out Imarticus’s Certified Management Accountant course. This US CMA course has been created for financial professionals to learn the skills necessary to lead in accounting and finance.