CFO Series: Diversification: Risky or Risk Averse Strategy?

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Instructor

Brian
Maturi

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Brian Maturi

Bio

Brian Maturi, MBA, FCA has 45 years' financial management experience in the UK and US, including five years with Deloitte Touche and 22 years with BorgWarner, Inc. where he was a divisional VP-Finance and Corporate Director of Risk Management. His favorite topics include ethics of risk management, management accounting and currency, commodity, and interest rate hedging. Brian holds a bachelor's in Economics, an MBA and is an English Institute of Chartered Accountants fellow.

Some believe that diversification is a proven method to reduce risk, but
does diversification actually increase risk? The intention for diversification is critical. Most organizations misuse diversification and the blunders have been staggering. What lessons can we learn? How can diversification be implemented to achieve the intended goals? One key is to use a holistic approach, which we will elaborate and explain. Only then will diversification be advantageous. Leaders, the Board, auditors and team members must be aware of the myriad issues of diversification. Done right
diversification is a boon. We will explain what to do, how to do it properly, and what not to do!

Learning Objectives

After attending this presentation, you will be able to...

Assess diversification strategies.
Recall how risk can be posed to diverse portfolios.
Recall the proper, effective way to diversify to reduce hazards.

Major Topics

The major topics that will be covered in this course include:

Does diversification truly reduce risk or not?
Portfolio theory and how to use it.
The differences between specific risk and systematic risk, and how we can reduce those risks.
The most common reasons why most organizations fail when attempting to diversify.
What happened to conglomerates?
- Why conglomerates disappeared in the West?
- Why are conglomerates in Korea an India successful?
Diversification via acquisitions.
Is the control premium worthwhile?
Which cost of capital (WACC) should we employ?
What are the effective diversification methods and tactics that truly do reduce risk?

CPE Credits Available

2 CPE Credits

2: Auditing

Things to Know About This Course

Course Level

Intermediate

Professional Area of Focus

Prerequisites

None, preferably at least six (6) months of professional financial statement analysis experience and/or at least six (6) months of professional experience in preparing or reviewing accounting processes and reports; experience working with internal clients or external clients and business leaders.

Advanced Preparation

None

Intended Audience

Financial leaders, financial managers, CEOs, CFOs, controllers, accountants, board members, advisors, and consultants; CPAs in public practice and CPAs in industry; business owners, entrepreneurs and professionals who are interested in realizing more value from the organization.

April 10, 2026