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CA Final Risk Management and FSCM Tips and Tricks by CA Gaurav Jainn

The new CA Final syllabus has a new introduction of an optional paper where students can choose one from six available options. The examination is designed to be an open bookcase study examination.

If you have chosen Risk management (Paper 6A) as your optional subject in CA Final and are looking for a Guide to Prepare for CA Final Risk Management, this article is just for you. The Risk Management paper in CA Final examination is built around applying risk scenarios to business. Many modules in this paper are from the post-qualification courses in insurance and risk management offered by ICAI. The subject is close to Auditing, Strategic Financial Management, and Actuaries, Quantitative Methods, Corporate Governance, and various Risk models. It is essentially an extension of the assurance subject.

Paper 6B in CA Final is Financial Services & Capital Markets, one of the electives/optional subjects for you to choose from a plethora of others. Being a concept-oriented paper, FSCM is touted as a favorite among electives due to some advantages. It is high scoring and is considered a great add-on for aspirants looking for a career in investment banking, equity research, and stock markets. This elective is also reckoned as putting CA aspirants on the same level as MBA Finance graduates due to its extensive coverage of financial markets

Which Elective to choose between Risk Management and Financial Services & Capital Markets?

Both the subjects are quite scoring and are for students having interests in Finance. Risk Management is a theory-based subject consisting of only one chapter for Practical whereas, FSCM is a practical based subject covering chapters like Factoring, Leasing, Mutual Funds, and Start-ups, etc.

Each and every subject has its own pros and cons, you need to be decisive about the choice you make. Also, ICAI has given this opportunity for students to learn and choose their future career domains while studying.

Risk Management is ideal for those who want to pursue a career in risk control, risk management or credit risk management, and risk analysis.

Financial Services & Capital Markets is ideal for those who want to pursue a career in investment banking, equity research, and financial market analysis. This field is among the highest-paid fields globally.

Tips & Tricks:

Risk Management

  • Risk management is a vast topic. Do not blindly learn theory without practical applications
  • Bring notes in the form of mind maps or concept maps. That way, you’ll see how different parts of the course connect.
  • Quoting real-life scenarios (staying abreast with current business examples) will prove your understanding of the topic and is a sure shot scorer.
  • The presentation makes a real impression. While answering correctly is important, how you present it also matters. Structuring your answers into sections and highlighting important parts of the answer will create a good impression.
  • Since case-based questions will be asked, support your answer with facts, statements, and then conclude by stating your views on the issue.

Financial Services and Capital Markets

  • Understanding current business affairs are extremely important and could give you an edge over your competitors in terms of scoring
  • Attempt MCQs first and attempt all as there is no negative marking
  • As much as possible, in the theory-based answers, include real-world live examples to demonstrate your depth of understanding. This will create a good impression on the examiner
  • SEBI regulations need to be understood thoroughly since many MCQs and case studies will be designed to test your understanding of the application of regulations in various scenarios
  • Presentation is of great importance, especially in answers where you are required to present your argument. Structuring your answers into sections with headlines and highlighting important parts of the answer will make reading easy and you can grab the attention of the examiner towards your points that you are most confident about.