CRP-M5 CRP-M5 - Financial Management in Corporate Decision-Making (wef. Jan 2005)
Financial Management can be defined as the management of the finances of a firm in order to achieve financial objectives. The key objectives of financial management are:
- To obtain and use funds efficiently so as to maximise the value of the firm
- To maximise shareholders’ wealth bearing in mind the risks that the business is taking and the resources invested
- To identify the financial risks that should be hedged and hedge them in an efficient manner.
There are three key elements in the process of financial management:
- Financial Planning
- Financial Control
- Financial Decision-making
The focus will be on the methods of identifying and measuring the impact of
these exposures and the appropriate instruments to hedge the firm's exposures.
- Understanding the significance of financial management in corporate decision-making
- Identifying the corporate investment issues
- Reducing the business and financial risks
- Integrating the decision models