Strategic financial management

Strategic financial management refers to

study of finance with a long term view considering the strategic goals of the enterprise. Financial management is nowadays increasingly referred to as "Strategic Financial Management"

Strategic Financial Management services

Capital budgeting Risk Management Financial Analysis Working capital management Foreign Exchange Risk Management Derivatives Asset Pricing

Investment Banking

Definition of 'Strategic Financial Management

Managing an organization's financial resources so as to achieve its business objectives and maximize its value. Strategic financial management involves a defined sequence of steps that encompasses the full range of a company's finances, from setting out objectives and identifying resources, analyzing data and making financial decisions, to tracking the variance between actual and budgeted results and identifying the reasons for this variance. The term "strategic" means that this approach to financial management has a long-term horizon.

 At the most fundamental level, financial

management is concerned with managing an organization's assets, liabilities, revenues, profitability and cash flow. Strategic financial management goes a step further in ensuring that the organization remains on track to attain its shortterm and long-term goals, while maximizing value for its shareholders. Strategic financial management also means that short-term goals may occasionally need to be sacrificed to meet longer-term objectives. A typical example is when a loss-making company trims its asset base through factory closures or headcount reduction in order to reduce operating expenses. While such actions have a detrimental effect on near-term results because of restructuring costs and other onetime items, it positions the company to achieve profitability in the longer term.

Objectives of SFM
prepare reports for management explaining

and evaluating the financial consequences of strategic decisions. identify and evaluate appropriate sources of finance, their risks and costs. assess potential investment decisions and strategies understand the impact of the global business environment on national and multinational organizations

 explain, demonstrate and recommend

suitable risk management techniques understand the significance of cash management and the treasury function in the commercial environment select the techniques most appropriate to optimize the employment of financial resources and critically evaluate such techniques

 analyze and evaluate financial information

relating to past and future business performance