Unit of competency Outline

Date retreived
23/07/2026 9:34 AM AWST

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Use financial and economic information for strategic decision making

Use financial and economic information for strategic decision making

Unit of competency
National Code
BSBMGT803
State Code
AUH83
TGA Status
Replaced
DTWD Status
Transition (Replaced)
Current Release Number
1.00
Current Release Date
25/03/2015
View on TGA
State Implementation and Classification
Approved Date
15/09/2015
Field of Education
080301 - Business Management
Original Release Date
15/09/2015
Nominal Hours
90
Description
This unit describes the skills and knowledge required to analyse financial and economic information to achieve the objectives of an organisation. It covers the use and interpretation of financial information to support business decision making, analysis and use of budget systems and reporting processes and the impact of micro and macro-economic information on enterprise planning.It applies to senior management, including strategic business analysts and executive managers, who use cognitive and creative skills to review, critically analyse, consolidate and synthesise knowledge, generate ideas and provide solutions to complex problems. They use communication skills to demonstrate their understanding of theoretical concepts and to transfer knowledge and ideas to others.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication.
Notes
Elements and Performance Criteria
1. Analyse financial resources
  • 1.1 Identify and incorporate the financial resources required to achieve organisational objectives from the budget
  • 1.2 Forecast additional expenditure requirements and make provisions in the budget as required
  • 1.3 Develop contingency plans for obtaining additional financial resources in the event of a shortfall of available funds
2. Interpret financial and economic information
  • 2.1 Analyse financial reports by calculating balance sheet ratios, income statement ratios and cash flow statement ratios
  • 2.2 Identify and evaluate macro and micro economic factors and measure their impact on enterprise financial capabilities
  • 2.3 Review and report financial performance of business units within the enterprise
3. Use financial information to support decision making
  • 3.1 Model different financial scenarios to support the decision making process
  • 3.2 Conduct a cost benefit analysis of organisation’s activities to determine viability
  • 3.3 Consult appropriate financial advisers about financial information to support decisions
  • 3.4 Analyse financial information to ensure it is valid and reliable
  • 3.5 Make strategic decisions based on up to date financial information
4. Maximise returns on financial resources
  • 4.1 Monitor actual income and expenditure against budgets to ensure available and budgeted resources are not exceeded
  • 4.2 Explain variations and implement corrective action when deviations in budgets occur
  • 4.3 Collect, analyse and report data on the use of financial resources
  • 4.4 Communicate recommendations for improving returns on financial resources to relevant parties
  • 4.5 Agree performance indicators with managers and staff
No information
No information
Replaced By
State Code National Code Title Type
OCE77 BSBFIN801 Lead financial strategy development Unit of competency