Financial Management


By

Preeti Lata Adhikari
Preeti Gairola
Management Students
NSB School of Business
New Delhi
 


Finance is the science of funds management, Finance includes saving money and often includes lending money. It deals with the concepts of time, money and risk and how they are interrelated and also with how money is spent and budgeted.

It is actually  "Planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization".

Financial Management in an organization is based on three concepts:

    * Financial planning

    * Financial Control

    * Financial Decision-making

Financial sector in India has become stronger in terms of capital and the number of customers. It has become globally competitive and diverse aiming, at higher productivity and efficiency.

Diversifying into investment banking, insurance, credit cards, depository services, mortgage financing, securitization has increased revenues. As the competition has increased large number of players in various fields entered into the market, it has been done by mutual funds, Non Banking Finance Corporations (NBFCs), post offices, etc. from both domestic and foreign player

Financial  Organizations ensure the financial health and security of their companies and customers through asset management and protection, capital allocation management, financial risk analysis and management. They strive to improve customer acquisition, service and retention through the use of market analysis, performance management and customer relationship management

They are challenged to provide responsible fiduciary management while increasing profitability and competitive differentiators. These organizations must make performance improvements, reduce administrative costs and increase customer satisfaction while mitigating risk. It helps you to understand critical financial business issues, and learn how to plan and implement business management strategies to achieve your objectives. It also include customer relationship management regulatory reporting and compliance requirements, international finance issues, risk management and portfolio management.

On the whole it is the managerial activity which is concerned with the planning and controlling of the firm's financial resources is called Financial management.

Reference:

www.en.wikipedia.org
 


Preeti Lata Adhikari
Preeti Gairola
Management Students
NSB School of Business
New Delhi
 

Source: E-mail August 28, 2010

 

           

 

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