Advanced Financial Management (AFM)

Develop expertise in complex financial decision-making and risk management for senior finance roles.

Professional Level Optional Paper Global Pass Rate: 44%
Advanced Financial Management

About AFM

Advanced Financial Management (AFM) develops your ability to make complex financial management decisions and provide strategic financial advice.

AFM builds on your knowledge from the Financial Management (FM) exam and focuses on developing advanced skills required for senior financial management roles. You'll learn how to evaluate potential investment decisions, assess acquisitions and mergers, manage financial risks, and make strategic financial decisions in complex business environments.

Why AFM is Important

AFM is essential for anyone pursuing a career in corporate finance, investment banking, or financial consultancy. It provides the technical knowledge and strategic insight needed to:

  • Evaluate complex investment decisions and financing strategies
  • Assess mergers, acquisitions, and corporate reconstructions
  • Manage financial risks using sophisticated techniques
  • Provide strategic financial advice to organizations

Exam Details

Duration: 3 hours 15 minutes
Pass Mark: 50%
Availability: March, June, September, December
Format: Computer-based exam

AFM Syllabus Areas

Investment Decisions

  • Advanced investment appraisal techniques
  • Project valuation and real options
  • Impact of financing on investment decisions
  • International investment decisions
  • Risk analysis in investment appraisal

Corporate Reconstructions

  • Mergers and acquisitions
  • Business valuation methods
  • Financing acquisitions
  • Defensive strategies against takeovers
  • Corporate restructuring

Risk Management

  • Foreign exchange risk management
  • Interest rate risk management
  • Derivatives and hedging strategies
  • Credit risk management
  • Enterprise risk management

Treasury Management

  • Role of the treasury function
  • Working capital management
  • Cash management strategies
  • Short-term investments and borrowings
  • International treasury management

Financing Decisions

  • Sources of finance and their relative costs
  • Capital structure theories and practical considerations
  • Dividend policy and its impact
  • Leasing vs. borrowing decisions
  • Islamic finance

Professional Ethics

  • Ethical issues in financial management
  • Professional values and ethics
  • Conflicts of interest
  • Social responsibility
  • Ethical decision-making frameworks

Professional Skills Developed

Financial Analysis

Ability to analyze complex financial data and make informed decisions

Strategic Thinking

Develop strategic perspective on financial management issues

Risk Assessment

Identify, evaluate and manage financial risks using appropriate techniques

Investment Appraisal

Evaluate potential investments using advanced appraisal techniques

Valuation Skills

Value businesses, securities and financial instruments accurately

International Perspective

Understand and apply international financial management principles

Start Your AFM Journey Today

Master advanced financial management techniques with our comprehensive AFM course