Criteria For:

Standard Finance - Level 4 2CR

Standard Finance - Level 4 2CR

Program-of-Study Exam: Badge holder demonstrated an understanding of fundamental decision-making skills and knowledge needed to manage a financial business or finance department within an organization. Skills and concepts assessed focus on business law, compliance, communication skills, customer relations, economics, emotional intelligence, financial analysis, financial-information management, human-resources management, information management, operations, professional development, selling, and strategic management.

Business Law (BL)

Standard: Understands business's responsibility to know, abide by, and enforce laws and regulations that affect business operations and transactions

Performance Indicators:
Explain types of business ownership (BL:003, BL LAP 1) (CS)
Discuss legal considerations in the finance industry (BL:133) (SP)
Discuss the effect of tax laws and regulations on financial transactions (BL:134) (SP)
Discuss the nature and scope of compliance in the finance industry (BL:148) (SP)
Describe the use of technology in compliance (BL:149) (SP)

Customer Relations (CR)

Standard: Understands the techniques and strategies used to foster positive, ongoing relationships with customers

Performance Indicators:
Explain the nature of positive customer relations (CR:003, LAP-CR-001) (CS)
Demonstrate a customer-service mindset (CR:004, LAP-CR-004) (CS)
Develop rapport with customers (CR:029) (CS)
Reinforce service orientation through communication (CR:005) (CS)
Respond to customer inquiries (CR:006) (CS)
Adapt communication to the cultural and social differences among clients (CR:019) (CS)
Interpret business policies to customers/clients (CR:007) (CS)
Handle difficult customers (CR:009, LAP-CR-003) (CS)
Handle customer/client complaints (CR:010, LAP-CR-010) (CS)
Identify company’s brand promise (CR:001, LAP-CR-006) (CS)
Determine ways of reinforcing the company’s image through employee performance (CR:002) (CS)
Explain the responsibilities of finance professionals in providing client services (CR:012) (CS)

Economics (EC)

Standard: Understands the economic principles and concepts fundamental to business operations

Performance Indicators:
Distinguish between economic goods and services (EC:002, LAP-EC-010) (CS)
Explain the concept of economic resources (EC:003, LAP-EC-014) (CS)
Describe the concepts of economics and economic activities (EC:001, \LAP-EC-006) (CS)
Determine economic utilities created by business and marketing activities (EC:004, LAP-EC-013) (CS)
Explain the principles of supply and demand (EC:005, LAP-EC-011) (CS)
Describe the functions of prices in markets (EC:006, LAP-EC-012) (CS)
Explain the role of business in society (EC:070, LAP-EC-020) (CS)
Describe types of business activities (EC:071, LAP-EC-019) (CS)
Explain the types of economic systems (EC:007, LAP-EC-017) (CS)
Identify the impact of small business/entrepreneurship on market economies (EC:065) (CS)
Explain the concept of private enterprise (EC:009, LAP-EC-015) (CS)
Identify factors affecting a business’s profit (EC:010, LAP-EC-002) (CS)
Determine factors affecting business risk (EC:011, LAP-EC-003) (CS)
Explain the concept of competition (EC:012, LAP-EC-008) (CS)
Determine the relationship between government and business (EC:008, LAP-EC-016) (CS)
Explain the concept of productivity (EC:013, LAP-EC-018) (CS)
Describe types of business models (EC:138) (SP)
Explain the organizational design of businesses (EC:103, LAP-EC-023) (SP)
Discuss the global environment in which businesses operate (EC:104, LAP-EC-022) (SP)
Describe factors that affect the business environment (EC:105, LAP-EC-026) (SP)
Explain the nature of business ethics (EC:106, LAP-EC-021) (SP)
Explain how organizations adapt to today’s markets (EC:107, LAP-EC-025) (SP)
Describe the nature of taxes (EC:072, LAP-EC-027) (SP)

Financial Analysis (FI)

Standard: Understands tools, strategies, and systems used to maintain, monitor, control, and plan the use of financial resources

Performance Indicators:
Explain forms of financial exchange (cash, credit, debit, electronic funds transfer, etc.) (FI:058) (PQ)
Identify types of currency (paper money, coins, banknotes, government bonds, treasury notes, etc.) (FI:059) (PQ)
Describe functions of money (medium of exchange, unit of measure, store of value) (FI:060) (PQ)
Describe sources of income (wages/salaries, interest, rent, dividends, transfer payments, etc.) (FI:061) (PQ)
Explain the time value of money (FI:062) (CS)
Explain the purposes and importance of credit (FI:002, LAP-FI-002) (CS)
Explain legal responsibilities associated with financial exchanges (FI:063) (CS)
Explain the nature of financial needs (e.g., college, retirement, wills, insurance, etc.) (FI:064) (CS)
Set financial goals (FI:065) (CS)
Develop personal budget (FI:066) (CS)
Explain the need to save and invest (FI:270) (CS)
Explain the nature of tax liabilities (FI:067) (PQ)
Interpret a pay stub (FI:068) (PQ)
Prepare bank account documents (e.g., checks, deposit/withdrawal slips, endorsements, etc.) (FI:560) (PQ)
Maintain financial records (FI:069) (PQ)
Read and reconcile bank statements (FI:070) (PQ)
Demonstrate the wise use of credit (FI:071) (CS)
Validate credit history (FI:072) (CS)
Protect against identity theft (FI:073) (CS)
Prepare personal income tax forms (i.e., 1040 EZ form) (FI:074) (CS)
Describe types of financial-services providers (FI:075) (CS)
Discuss considerations in selecting a financial-services provider (FI:076) (CS)
Describe the need for financial information (FI:579, LAP-FI-009) (CS)
Explain the concept of accounting (FI:085, LAP-FI-005) (CS)
Explain the role of finance in business (FI:354, LAP-FI-007) (CS)
Describe the role of financial institutions (FI:336) (CS)
Explain types of investments (FI:077, LAP-FI-077) (CS)
Describe the concept of insurance (FI:081) (CS)
Discuss the role of ethics in accounting (FI:351) (SP)
Explain the use of technology in accounting (FI:352) (SP)
Explain legal considerations for accounting (FI:353) (SP)
Describe the nature of cash flow statements (FI:091, LAP-FI-006) (SP)
Explain the nature of balance sheets (FI:093, LAP-FI-010) (SP)
Describe the nature of income statements (FI:094, LAP-FI-004) (SP)
Discuss the role of ethics in finance (FI:355) (SP)
Explain legal considerations for finance (FI:356) (SP)
Explain types of financial markets (e.g., money market, capital market, insurance market, commodities markets, etc.) (FI:337) (SP)
Discuss the nature of convergence/consolidation in the finance industry (FI:573) (SP)
Describe the relationship between economic conditions and financial markets (FI:574) (SP)
Explain the nature and scope of financial globalization (FI:575) (SP)
Describe sources of securities information (FI:274) (CS)
Interpret securities tables (FI:275) (SP)
Explain the nature of statements of changes in equity (FI:630) (SP)
Describe the nature of budgets (FI:106, LAP-FI-003) (SP)
Calculate the time value of money (FI:238) (SP)
Explain the nature of managerial cost accounting (e.g., activities, costs, cost drivers, etc.) (FI:657) (SP)
Describe the scope of costs in managerial accounting (e.g., direct cost, indirect cost, sunk cost, differential cost, etc.) (FI:658) (SP)
Describe marginal analysis techniques and applications (FI:659) (SP)
Explain the role of managerial accounting techniques in business management (FI:660) (SP)
Discuss the use of variance analysis in managerial accounting (FI:661) (SP)

Financial Management

Standard: Understands tools, strategies, and systems needed to access, process, maintain, evaluate, and disseminate financial information to assist business decision-making

Performance Indicators:
Explain the nature and scope of the financial-information management function (FM:002) (SP)
Explain the role of ethics in financial-information management (FM:003) (SP)
Describe the use of technology in the financial-information management function (FM:011) (SP)

Human Resources Management (HR)

Standard: Understands the tools, techniques, and systems that businesses use to plan, staff, lead, and organize its human resources

Performance Indicators:
Discuss the nature of human resources management (HR:410, HR LAP 35) (CS)

Information Management (NF)

Standard: Understands tools, strategies, and systems needed to access, process, maintain, evaluate, and disseminate information to assist business decision-making

Performance Indicators:
Discuss the nature of information management (NF:110, NF LAP 3) (CS)
Identify ways that technology impacts business (NF:003, NF LAP 4) (PQ)

Marketing (MK)

Standard: Understands the tools, techniques, and systems that businesses use to create exchanges and satisfy organizational objectives

Performance Indicators:
Explain marketing and its importance in a global economy (MK:001, MK LAP 4) (CS)

Operations (OP)

Standard: Understands the processes and systems implemented to monitor, plan, and control the day-to-day activities required for continued business functioning

Performance Indicators:
Explain the nature of operations (OP:189, OP LAP 3) (CS)
Explain the nature and scope of purchasing (OP:015, OP LAP 2) (CS)
Explain the concept of production (OP:017,OP LAP 4) (CS)

Professional Development (PD)

Standard: Understands concepts, tools, and strategies used to explore, obtain, and develop in a business career

Performance Indicators:
Identify sources of career information (PD:022) (CS)
Identify tentative occupational interest (PD:023) (CS)
Explain employment opportunities in business (PD:025, LAP-PD-015) (CS)
Discuss employment opportunities in the finance industry (PD:152, LAP-PD-020) (CS)
Utilize job-search strategies (PD:026) (PQ)
Complete a job application (PD:027) (PQ)
Interview for a job (PD:028) (PQ)
Write a follow-up letter after job interviews (PD:029) (CS)
Write a letter of application (PD:030) (CS)
Prepare a résumé (PD:031) (CS)
Discuss the importance of corporate governance in business (PD:213) (CS)
Ascertain employee’s role in achieving governance objectives (PD:301) (CS)
Discuss opportunities for building professional relationships in finance (PD:153) (SP)
Identify the factors that impact governance structures (SP)
Describe the components of a well-governed company (e.g., board of directors, reporting, transparency, internal and external audit functions) (SP)
Describe the impact of governance processes on decision-making and management functions (SP)

Selling (SE)

Standard: Understands the concepts and actions needed to determine client needs and wants and respond through planned, personalized communication that influences purchase decisions and enhances future business opportunities

Performance Indicators:
Explain the role of ethics in risk management (RM:041) (SP)
Describe the use of technology in risk management (PM:042) (SP)
Discuss legal considerations affecting risk management (PM:043) (SP)
Discuss the nature of risk control (i.e., internal and external) (RM:058) (SP)
Discuss the nature of enterprise risk management (ERM) (RM:062) (SP)

Strategic Management (SM)

Standard: Understands tools, techniques, and systems that affect a business's ability to plan, control, and organize an organization/department

Performance Indicators:
Explain the concept of management (SM:001, LAP-SM-003) (CS)
Explain the nature of risk management (SM:075, LAP-FI-008) (SP)