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