The role of financial managers
THE ROLE OF FINANCIAL MANAGERS
The financial manager of a firm plays an important role in the company’s objective
and financial
success. The financial manager’s responsibilities include:
1.
Financial analysis and planning: Determining the proper amount of funds to employ in the firm,
i.e., designating the size of the firm and its rate of growth
2.
Investment decisions:
The efficient allocation of funds to specific assets
3.
Financing and capital structure decisions:
Raising funds on as favorable terms as possible, i.e.,
determining the composition of liabilities
4. Management of financial resource
(such as
working capital)
5. Risk management: protecting assets