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{{DISPLAYTITLE:Financial Management Reference Content}}

= Financial Management Reference Content =

Financial Management is the operational activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operation, but also focus on financial decision making as well as harmonizing individual motives and enterprise goals.

The key objectives of Financial Management is to:
* Create wealth for the business
* Generate cash, and
* Provide an adequate return on investment bearing in mind the risks that the business is taking and the resources invested.

There are three key elements to the process of Financial Management:

*'''Financial Planning''': Management need to ensure that enough funding is available at the right time to meet the needs of the business. In the short term, funding may be needed to invest in equipment and stocks, pay employees and fund sales made on credit. In the medium and long term, funding may be required for significant additions to the productive capacity of the business or to make acquisitions.
*'''Financial Control''': Financial control is a critically important activity to help the business ensure that the business is meeting its objectives. Financial control addresses questions such as
**Are assets being used efficiently?
**Are the businesses assets secure?
**Do management act in the best interest of shareholders and in accordance with business rules?
*'''Financial Decision-making''': The key aspects of financial decision-making relate to investment, financing and dividends
**Investments must be financed in some way – however there are always financing alternatives that can be considered. For example it is possible to raise finance from selling new shares, borrowing from banks or taking credit from suppliers.
**A key financing decision is whether profits earned by the business should be retained rather than distributed to shareholders via dividends. If dividends are too high, the business may be starved of funding to reinvest in growing revenues and profits further.

The LEADing Practice Financial Management Reference Content has the purpose to identify, develop and tailor Financial Management specific standards and artefacts that are applied in specific and ongoing projects. Some of the standards and artefacts of the reference content are:

{|class="wikitable" style="width:100%; padding:1%" |
|class="thead" style="background-color:rgb(195, 217, 255);width: 70%;text-; padding:1%" |
'''ENTERPRISE STANDARD'''
|class="thead" style="background-color:rgb(195, 217, 255);width: 30%;text-align:left; padding:1%" |
'''REFERENCE CONTENT#'''
|-
|[[#|Finance Competency Map]]
|BM/Competency
|-
|[[Media:LEAD-Business-Model-Reference-Framework-Business-Model-Level-2-Internal-Audit.pdf|Finance Business Model]]
|BM/Competency
|-
|[[Media:LEAD-Value-Reference-Framework-Strategy-Map-Cost-Cutting.pdf|Finance Strategy Map and Model]]
|Value
|-
|[[Media:LEAD-Value-Reference-Framework-Strategy-Model-Finance.pdf|Major Critical Success Factors of Finance (CSFs)]]
|Value
|-
|[[#|Finance Value Drivers]]
|Value
|-
|[[#|Major Finance Performance Drivers]]
|Value
|-
|[[Media:LEADing-Practice-Financial-Scorecard-Measurements.pdf|Key Performance Indicators of Finance (KPIs)]]
|Value
|-
|[[#|Finance Process Map]]
|Process
|-
|[[#|Example of a Finance Process Model in BPM Notations]]
|Process
|-
|[[#|Finance Service Matrix]]
|Service
|-
|[[#|Finance Service Architecture Flow]]
|Service
|-
|[[#|Finance Information Flow Architecture]]
|Information
|-
|[[#|Integrated Model of Finance SBOs/CSFs/KPIs & Processes]]
|All
|-
|[[#|Finance Maturity Model]]
|All
|-
|[[Media:LEAD-Business-Model-Reference-Framework-Finance-Operating-Model.pdf|Finance Business Architecture]]
|All
|-
|}

[[Category: Finance & Financial Services]]

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 {{DISPLAYTITLE:Financial Management Reference Content}}
 = Financial Management Reference Content =
 Financial Management is the operational activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operation, but also focus on financial decision making as well as harmonizing individual motives and enterprise goals.

LEAD Reference Content:Financial Management Reference Content - Revision history

Admin at 12:01, 14 January 2019

Admin: Created page with "{{DISPLAYTITLE:Financial Management Reference Content}} = Financial Management Reference Content = Financial Management is the operational activity of a business that is res..."