DECA ACT PIs - 3. Finance Cluster: Markets, Governance, Risk & Compliance

Describe the role of financial institutions (FI:336) (CS)

Intermediaries that channel funds from savers to borrowers.

Explain types of financial markets (e.g., money market, capital market, insurance market, commodities markets, etc.) (FI:337) (SP)

Venues where different types of financial securities and assets are traded.

Discuss the nature of convergence/consolidation in the finance industry (FI:573) (SP)

The merging of different financial institutions or services into single entities.

Describe the relationship between economic conditions and financial markets (FI:574) (SP)

How macroeconomic factors like interest rates and inflation affect asset prices.

Explain the nature and scope of financial globalization (FI:575) (SP)

The increasing integration of global financial systems and capital flows.

Describe sources of securities information (FI:274) (CS)

Publications, databases, and media providing financial data for investing.

Interpret securities table (FI:275) (SP)

Reading and understanding stock or bond price listings in financial papers.

Explain the nature of statements of changes in equity (FI:630) (SP)

Financial reports showing the causes of changes in owners' equity over time.

Calculate the time value of money (FI:238) (SP)

Determining how money's worth changes over time due to interest and compounding.

Discuss employment opportunities in the finance industry (PD:152) (CS)

Exploring career paths and jobs available within the finance sector.

Discuss opportunities for building professional relationships in finance (PD:153) (SP)

Networking strategies to build a strong professional network in finance.

Discuss the importance of corporate governance in business (PD:213) (CS)

Why systems of rules and processes directing a company are crucial.

Identify the factors that impact governance structures (PD:302) (SP)

Elements like size, ownership, and regulations that shape corporate governance.

Describe the components of a well-governed company (e.g., board of directors, reporting, transparency, internal and external audit functions) (PD:214) (SP)

Key structural elements ensuring accountability, oversight, and ethical operations.

Describe the impact of governance processes on decision-making and management functions (PD:303) (SP)

How governance frameworks influence strategic choices and management.

Explain the nature and scope of the financial-information management function (FM:002) (SP)

Managing an organization's financial data to support business decisions.

Explain the role of ethics in financial-information management (FM:003) (SP)

Maintaining honesty, integrity, and compliance in financial data handling.

Describe the use of technology in the financial-information management function (FM:011) (SP)

Using software and digital tools to manage and track financial records.

Describe techniques used to analyze customer financial information (FM:009) (SP)

Methods to assess clients' financial health, credit, and spending patterns.

Discuss non-traditional uses for financial information (e.g., lean, sustainability reporting, activity-based costing [ABC], six sigma) (FM:016) (SP)

Applying financial data to operational efficiency, sustainability, and quality control.

Explain the role of ethics in risk management (RM:041) (SP)

Upholding ethical standards and avoiding conflicts in managing organizational risks.

Describe the use of technology in risk management (RM:042) (SP)

Leveraging software for identifying, assessing, and mitigating risks.

Discuss legal considerations affecting risk management (RM:043) (SP)

Regulations and legal obligations that impact organizational risk profiles.

Discuss the nature of risk control (i.e., internal and external) (RM:058) (SP)

Internal policies and external safeguards used to minimize identified risks.

Discuss the nature of enterprise risk management (ERM) (RM:062) (SP)

A comprehensive framework to manage all risks facing an enterprise.

Explain the nature of risk management (SM:075) (SP)

Identifying, assessing, and prioritizing risks to minimize potential losses.

Discuss legal considerations in the finance industry (BL:133) (SP)

Laws and legal frameworks governing financial institutions and transactions.

Discuss the effect of tax laws and regulations on financial transactions (BL:134) (SP)

How tax policies influence financial decisions and transaction profitability.

Discuss the nature and scope of compliance in the finance industry (BL:148) (SP)

Adhering to laws, regulations, and ethical guidelines in the finance sector.

Describe the use of technology in compliance (BL:149) (SP)

Using digital tools and automation to monitor and ensure regulatory adherence.

Explain the responsibilities of finance professionals in providing client services (CR:012) (CS)

Duties and ethical standards financial workers must follow when serving clients.