← Financial Management for SMEs: Strategic Financial Management

Financial Risk Management

Module 04 / 6 · 65 min

Identify and manage the financial risks of a growing SME: customer credit risk, liquidity and covenant risk, foreign exchange and interest rate risk, and fraud.

In this module you will learn to

Run a simple risk process: identify, assess, respond and monitor, with a risk register
Manage customer credit risk with limits, terms, aging reviews and provisions
Forecast liquidity 13 weeks ahead and track covenant headroom
Measure the effect of foreign exchange and interest rate changes on margins and debt service
Prevent and detect fraud with internal controls, segregation of duties and clear red flags

Built on

Erudite Africa training curriculum: Financial Management for SMEs, Level 3 Advanced, Strategic Financial Management (October 2026)
Income Tax Proclamation No. 979/2016 as amended by No. 1395/2025; VAT Proclamation No. 1341/2024 and VAT Registration Directive No. 1104/2025; Federal Tax Administration Proclamation No. 983/2016 as amended by No. 1434/2026
Capital Goods Leasing Business Proclamation No. 103/1998 as amended by No. 807/2013; Investment Proclamation No. 1180/2020; Investment Incentive Regulation No. 586/2026
Commercial Code Proclamation No. 1243/2021 and Financial Reporting Proclamation No. 847/2014 (IFRS for SMEs, AABE filing)
NBE Directives No. NBE/INT/13/2026 (interest rates), SBB/95/2025 (capital adequacy), FXD/01/2024 and FXD/05/2026 (foreign exchange)
Published good practice on financial modeling, quality of earnings review and the balanced scorecard (Kaplan and Norton)

Examples and companies are fictional. Tax rates and rules are shown as they stood when the course was written; always check the current proclamations, directives and guidance from the Ministry of Revenues before filing, and take professional advice for your own case.