What this means

  • This area is integral to the Strategic Business Leader exam.
  • The ACCA Qualification examines this area in very practical ways through real life case study examples of different businesses.

Developing the Governance, Risk and Control competency

Explore the competency statements to discover how the ACCA Qualification develops this competency through a combination of exams, experience and ethics. Browse related jobs to find relevant finance roles and opportunities.

A. Evaluates organisational structures and governance to protect the long-term interests of stakeholders.

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    A1. Views the organisation as a 'corporate citizen'. This recognises the organisation has environmental, social and governance (ESG) responsibilities. These could include using reporting frameworks to produce integrated reports (<IR>).

    A2. Considers existing laws, regulations and best practice to assess whether the organisation’s governance structure is fit-for-purpose.

    A3. Recommends appropriate corporate governance objectives, structures and processes.

    A4. Understands the purpose, role and responsibilities of the board, its committees and the directors.

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Exams Syllabus Experience Ethics
Audit and Assurance A3, C4 PO4 c  
Advanced Audit and Assurance A1, B1    
Strategic Business Leader B2, D1    

B. Recommends appropriate strategies to ensure adherence to governance structures and application of best practice internal controls.

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    B1. Thinks about the overall purpose of governance in promoting and protecting the rights of stakeholders.

    B2. Identifies potential weaknesses and deficiencies in governance structures, controls and reporting.

    B3. Recommends improvements to safeguards against risks and deficiencies in governance structures, controls and reporting.

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Exams Syllabus Experience Ethics
Audit and Assurance C1, C2, C3, C4 PO4 c, d  
Advanced Audit and Assurance A2, A3, E3, E4    
Strategic Business Leader D1    

C. Identifies and manages risk appropriately.

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    C1. Understands and follows appropriate risk management policies, procedures and processes.

    C2. Identifies, measures and reports on different risk categories in a timely manner.

    C3. Promotes a responsible risk management culture across the organisation.

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Exams Syllabus Experience Ethics
Audit and Assurance C1, C2, C3, C4 PO4 c, d  
Strategic Business Leader D2    

D. Uses risk management for the best interests of an organisation and its stakeholders.

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    D1. Takes an integrated approach to risk management.

    D2. Communicates to stakeholders on the risk management roles of:

    • the board
    • audit committee
    • risk committee
    • internal audit
    • finance function.

    D3. Understand risks to the organisation and its activities using that knowledge to:

    • identify risk
    • assess risk appetite
    • complete risk impact assessments

    D4. Recognises the dynamic and varying nature of risk in different organisations and sectors. 

    D5. Applies appropriate, up-to-date risk management techniques to manage risk and reduce its negative impact.

    D6. Improves how risk in the business is identified and managed, using business intelligence and data analytics technologies.

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Exams Syllabus Experience Ethics
Audit and Assurance A3, A5 PO4 (all)  
Advanced Audit and Assurance A1, A2, A3    
Strategic Business Leader D1, D2    

E. Monitors and applies relevant legislation, policies and procedures.

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    E1. Ensures compliance with relevant laws and regulations; professional codes and corporate governance codes.

    E2. Complies with internal policies and procedures.

    E3. Thinks critically about internally generated and externally sourced information applying a governance, risk and control mind-set where applicable to focus on financial and control issues.

    E4. Ensures corporate and governance reports comply with regulations, codes and best practice and that reports are effectively delivered to stakeholders including, where appropriate, using digital technologies.

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Exams Syllabus Experience Ethics
Audit and Assurance All syllabus areas PO4 b  
Advanced Audit and Assurance All syllabus areas PO18 c  
Strategic Business Leader D3    
Corporate Business and Law All syllabus areas    

Related professional quotients

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Intelligence

Shows Intelligence in evaluating organisational structures and protecting the long-term interests of stakeholders.

Creative

Creative in using risk management strategy and tools in the best interests of an organisation and its stakeholders.

Emotional intelligence

Emotional Intelligence is required in communicating internal control weaknesses or lack of adherence in governance to multiple stakeholders.

Example jobs