CMI Unit 706 Finance for Strategic Leaders (F/617/6866) Assignment Brief 2026

CMI Unit 706 Assignment Brief

Assignment Aim

The aim of this unit is to provide leaders with an understanding of the scope, complexity and role of Finance within an organisational context.  Leaders will know how to critically assess methods for analysing financial data and information required to make strategic decisions. Ultimately, the aim of this unit is to equip leaders to be more confident in their understanding of the Finance function.

Learning Outcomes and Assessment Criteria

LO1 – Understand the scope of the Finance function within an organisational context

Assessment criteria

1.1 Critically appraise how the Finance function supports organisational success

1.2 Discuss the scope, boundaries and governance of Finance within an organisational context

1.3 Critically assess current and emerging technological factors which impact on Finance

Indicative content 

1.1 Finance function: Finance as a strategic business partner (for example, inform new business models and plans. Outsourcing and insourcing. Make or buy decisions). Trusted advisor (for example, identifying and securing sources of finance and allocation of funds, supply chain integration, use of business intelligence,

industry convergence). Drive and contribute to strategic and operational planning. Governance (for example, policies, procedures).  Defining a project and its identity. Conducting value add and value for money (for example, Public Sector). Business analysis. Creation of alliances and partnerships. Managing supply chain financial and supplier risk. Reporting to internal and external stakeholders.

1.2 Organisational Contexts: Global, international, national, regional, local. Corporate, business, network, operational, functional, strategic business unit (SBU), departmental. Multi-national enterprise (MNE), Corporation (government owned or privately owned). Small to medium sized enterprise (SME). Public sector.

Cooperative organisations. Partnerships. Sole traders. Not for profit (for example, charities).

Scope, boundaries and governance of Finance:

• Financial accounting: Managing sources of finance (for example, debt equity ratio and the cost of capital). Financial statement analysis. Content and reporting of financial information to stakeholders (for example, Trustees, Board of Independent Directors). Interpreting financial analysis (for example, compounding and discounting factors, time value of money – future and present value).
• Management and cost accounting: Costing methods (for example, product, process, job costing). Budgeting and forecasting. Variance analysis. Cash flow. Relevant costs (for example, internal cost reporting and decision making).
• Project accounting (cost engineering): significant projects (for example, ring fenced to manage business risk, project charts of account). Purchasing (simple contracts). Role of project analysis methods (for example, budgeted cost of work performed). Payment methods (for example, earned values). Quantity adjusted budgets.
• Treasury, financial markets and institutions: The role of treasury management. (for example, Capital Asset Pricing Model. Stock market anomalies and inefficiencies. Portfolio theory and management. Investment Management. Financial risk management).
• Governance: Legal and regulatory frameworks. Companies Act 2006. Partnership Act 1890. General Data Protection Regulation (GDPR, 2018). International Financial Reporting Standards. Industry and technical standards. Professional codes of conduct. Sarbanes-Oxley. Bank of England Directives. EU Directives. UK Treasury Directives. Oversee development and monitoring of financial strategies and setting of organisational budgets based on Key Performance Indicators (KPIs).

1.3 Current and emerging technological factors: Technological development (for example, electronic transactions and payments). Electronic Data Interchange (EDI) standards and protocols. Simple, smart and self-invoicing. Use of enterprise resource planning (ERP). Manufacturing resource planning (MRP) systems. Spreadsheets and accounting software. Value added networks (VANs). New/evolving technologies – block chain and peer to peer technologies, Cloud computing, cybersecurity, FINtech and industry convergence, industry 4.0, use of Big Data.

LO2 – Understand the role of Finance in strategic decision making 

Assessment criteria

2.1 Critically assess how strategic decision making is informed by financial and cost analysis

2.2 Discuss approaches for legal and ethical financial reporting

Indicative content

2.1 Financial analysis: Financial statement (for example, statement of financial position, balance sheet, profit and loss statement, annual report). Use of key financial ratios (for example, Liquidity, profitability, solvency, efficiency/effectiveness). Use financial data to allocate resources

Cost analysis: Budgeting and cashflow. Costing methods (for example, fixed cost, variable cost, activity costs, marginal, project costing). Investment appraisal (for example, Discounted Cash Flow. Internal Rate of Return. Net Present Value. Return on Investment. Payback. Return on Capital Employed. Weighted Average Cost of Capital). Challenge financial assumptions which underpins strategies.

2.2 Reporting:

• Legal: Mandatory financial statements to external stakeholders in the public domain. Formal audit reporting. Costs and budgets to internal stakeholders (for example, Internal performance reporting). Use of leading and lagging indicators or measures to report performance. Dealing with causation and correlation of financial data and information.

Ethics: Adherence to ethical codes of conduct (for example, Professional Bodies) and guidance from the financial reporting council. The challenge of impartiality, influence and power of stakeholders, different perspectives, cognitive limits and bias (for example, The observer and the observed phenomena Mahoney 1988). Reporting (for example, situations when data or information may be incomplete, corrupted or lacks currency).

Recommendations for Assessment

Learners may approach the assessment in several ways. All assessment criteria must be met. The following opportunities are recommendations for guidance purposes only.

1. The learner may be asked to write a report on the scope and complexity of Finance within organisational contexts.
2. The learner may be asked to write an account on how a strategic leader can use financial and non-financial data and information to make decisions and report performance.
3. The learner may produce a reflective account on their leadership practice to evidence their ability to meet each of the assessment criteria.

Further guidance

It is not a requirement for the learner to cover all aspects of the indicative content when completing the assessment.  The learner is encouraged to select and present well-chosen information and examples to evidence they sufficiently understand the assessment criteria.

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