OVERVIEW
The field of finance is broad and dynamic. It directly affects the lives of every person, every organization (private, public, governmental and non-governmental, business and not-for-profit). Financial management is concerned with the duties of the financial manager in the business firm where he manages the financial affairs of the business. The tasks performed by a financial manager include planning, extending credit to customers, evaluating proposed large expenditures, and raising money to fund the firm’s operations.
Learning Objectives
In recent years, the changing economic and regulatory environments have increased the importance and thus complexity of financial management. It was need of the time to revise/update the course contents of the subject to serve the following:
- To acquaint the students about the Pros and cons of Financial planning and analysis
- To inculcate the ways and means how to manage the operating financial activities of an organization efficiently and in the most cost-effective manner.
- To equip the students with the tools and techniques for appraising various investment proposals.
- To give a fair enough knowledge in respect of assessing risk in the investment undertakings and ways to mitigate the risks up to the maximum level.
- To find the best possible financing mix to finance the proposed investments.
- To explore ways other than bank loans for financing capital investments.
Body of knowledge
The body of knowledge for a financial management professional often encompasses a broad range of topics related to finance, accounting, and strategic management. Below is a general outline of the key areas that might be covered in a certification program or training for financial management:
Financial Accounting and Reporting:
• Principles of accounting and financial reporting.
• Preparation and interpretation of financial statements.
Managerial Accounting:
• Cost accounting principles and techniques.
• Budgeting and variance analysis.
Corporate Finance:
• Capital budgeting and investment decisions.
• Financing options and capital structure.
• Valuation of securities and companies.
Financial Analysis and Planning:
• Ratio analysis and financial performance metrics.
• Financial forecasting and budgeting.
• Strategic financial planning.
Risk Management:
• Identification and assessment of financial risks.
• Techniques for mitigating financial risks.
• Insurance and derivatives in risk management.
Treasury Management:
• Cash management and working capital optimization.
• Management of short-term and long-term investments.
• Liquidity management.
Financial Markets and Instruments:
• Understanding financial markets and instruments.
• Securities trading and investment strategies.
Strategic Financial Management:
• Integration of financial goals with overall organizational strategy.
• Long-term financial planning and decision-making.
Ethics and Professional Standards:
• Adherence to ethical standards in financial management.
• Compliance with financial regulations.
International Finance:
• Understanding global financial markets.
• Managing financial operations in an international context.
Financial Technology (FinTech):
• Awareness of technological innovations in finance.
• Integration of FinTech solutions into financial management.
Leadership and Communication Skills:
• Effective communication of financial information.
• Leadership skills in managing financial teams.