Business Ethics and Corporate Governance, Second Edition

FINANCIAL MANAGEMENT

Financial management encompasses the two core processes of resource management and finance operations. Resource management is the effcient and effective deployment of an organization’s resources when they are needed. Such resources may include financial resources, inventory, human skills, production resources, or Information Technology.

Financial operations involve the execution of the joint finance mission to provide financial advice and guidance, support of the procurement process, providing pay support, and providing disbursing support.²

Broadly speaking, financial management involves:

• financial analysis and planning;
• investment decisions;
• financing and capital structure decisions; and
• management of financial resources. ...