Demystifying Financial Management
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The document discusses the goals and tools of financial management. The major goals of financial management for any organization are profitability and liquidity. An organization needs various tools to manage its funds and achieve these goals, including project management, financial markets, risk and return analysis, and financial accounting. Financial management involves making decisions around managing debts, cash, creditors, and stock to achieve an organization's profitability and liquidity goals. It also discusses the risks organizations face, such as operational, credit, market, liquidity, and reputational risk.
Demystifying Financial Management
- 1. Demystifying Financial Management CFE-In-Practice Integrity•Intelligence•Independence
- 2. CFE-In-Practice Integrity •Intelligence•Independence A VERY WARM WELCOME to Gracious Ladies and Fine Gentlemen Tommy Seah Chairman C.S.I. Vice –Chairman , ACFE World Headquarters (Texas, USA)
- 3. CFE-In-Practice Integrity •Intelligence•Independence What is Financial Management ?
- 4. CFE-In-Practice Integrity •Intelligence•Independence What are the Major Goals of Financial Management in any organization ?
- 5. CFE-In-Practice Integrity •Intelligence•Independence What are the Major Goals of Financial Management in any organization ? Profitability
- 6. CFE-In-Practice Integrity •Intelligence•Independence What are the Major Goals of Financial Management in any organization ? Profitability Stability Growth Reward reasons : Usual
- 7. CFE-In-Practice Integrity •Intelligence•Independence What are the Major Goals of Financial Management in any organization ? Liquidity
- 8. CFE-In-Practice Integrity •Intelligence•Independence What are the Major Goals of Financial Management in any organization ? Liquidity business of the existence the continuance i.e. "survival" Ensures
- 9. CFE-In-Practice Integrity •Intelligence•Independence Profitability & Liquidity Major Goals
- 10. What is next ? CFE-In-Practice Integrity •Intelligence•Independence Profitability & Liquidity Major Goals
- 11. Funds- Plenty of Funds CFE-In-Practice Integrity •Intelligence•Independence Profitability & Liquidity Major Goals
- 12. CFE-In-Practice Integrity •Intelligence•Independence Profitability & Liquidity Major Goals Long Term Short Term Funds
- 13. CFE-In-Practice Integrity •Intelligence•Independence Profitability & Liquidity Major Goals Long Term Short Term Funds How long is long ? How short is short ?
- 14. CFE-In-Practice Integrity •Intelligence•Independence The organization will need a set of TOOLS to manage the FUNDS in order to achieve it’s GOALS
- 15. CFE-In-Practice Integrity •Intelligence•Independence Profitability & Liquidity Major Goals Long Term THEME Short Term Funds Project Management Financial Markets Risks & Return Financial Analysis Financial Accounting TOOLS
- 16. CFE-In-Practice Integrity •Intelligence•Independence Profitability & Liquidity Major Goals Long Term THEME Short Term Funds Project Management Financial Markets Risks & Return Financial Analysis Financial Accounting TOOLS Project Management TIME VALUE of MONEY Financial Markets CASH Mkt. FUTURES Mkt. Risks & Return Financial Analysis Interpret-ation of Accounts P/L Accounts Balance Sheet Fund Flow Statements Specific TOOLS
- 17. Time Out
- 18. CFE-In-Practice Integrity •Intelligence•Independence Profitability & Liquidity Major Goals Long Term THEME Short Term Funds Project Management Financial Markets Risks & Return Financial Analysis Financial Accounting TOOLS Corporate Loan Project Financing Financial Derivatives Risk Premium Concept Risk Free possibilities Vertical Analysis Horizontal Analysis STRUCTURAL Analysis Financial Accounting Cost Accounting Management Accounting Financial Management Specific TOOLS
- 19. CFE-In-Practice Integrity •Intelligence•Independence The organization will need a set of tools to manage the FUNDS in order to achieve it’s GOALS
- 20. CFE-In-Practice Integrity •Intelligence•Independence So, what is management ? The Distinction between Risk and Exposure .
- 21. CFE-In-Practice Integrity •Intelligence•Independence So, what is management ? Active & Passive Exposure Definition : Active: always doing thing
- 22. CFE-In-Practice Integrity •Intelligence•Independence So, what is management ? Active & Passive Exposure Definition : Active: always doing thing People who make things happen.
- 23. CFE-In-Practice Integrity •Intelligence•Independence So, what is management ? Active & Passive Exposure Definition : Passive :tending to accept situation or things that other people do without attempting to change or fight against them. People who waits for things to happen .
- 24. CFE-In-Practice Integrity •Intelligence•Independence So, what is management ? People who ask “What happened ?”
- 25. CFE-In-Practice Integrity •Intelligence•Independence So, what is management ? To MANAGE the funds means to MAKE DECISIONS with regard to the funds.
- 26. CFE-In-Practice Integrity •Intelligence•Independence Profitability & Liquidity Major Goals Long Term DECISION MAKING Short Term Funds The Management of DEBTORS The Management of CASH TOOLS Corporate Loan Project Financing Financial Derivatives The Management of CREDITORS The Management of STOCKS Specific TOOLS
- 29. The Risk Spectrum for any organisation in general. Operational Risk Credit Risk Market Risk Liquidity Risk Reputational Risk
- 30. CFE-In-Practice Certified Fraud Examiners, Licensed Financial Investigators, International Forensic Accountants IBF Accredited f-NEXT Partner in Financial Training