1. Define financial management.

Financial management refers to the process of planning, organizing, directing,

and controlling financial resources to achieve organizational goals. Financial
management involves the acquisition, financing, and management of assets with
some overall goal in mind.

Financial management is crucial within organizations. It is responsible for

ensuring that an organization has the financial resources necessary to achieve its
objectives. Financial management focuses with making informed financial
decisions that maximize wealth for shareholder while balancing risk and return.
This includes various activities such as capital budgeting, cash management,
financial planning and analysis, and risk management.

2. Differentiate the role and function of a financial manager against manager

accountant.
Financial managers are mainly responsible of making financial decisions that
have an impact on the success of the organization in long-term, while
managerial accountants focuses on collecting and analyzing financial data to
support the decision-making process.

Financial managers are concerned with the organization's overall financial health
and work to ensure that the organization has the financial resources to achieve
its objectives. They are involved in tasks such as financial planning, financial
reporting, capital investment decisions, budgeting, and risk management.
Financial managers are crucial in securing funding for the organization, whether it
comes from debt or equity financing.

On the other hand, managerial accountants are responsible for collecting and
analyzing financial data to support the decision-making process. They are
involved in tasks including budgeting, variance analysis, performance
measurement, and cost accounting. Managerial accountants provide financial
information to other departments within the organization to help them in making
informed decisions.

In conclusion, financial managers focuses on making strategic financial decisions

to ensure the long-term success of the organization, whereas managerial
accountants focuses on collecting and analyzing financial data to support the
decision-making process.

3. Differentiate the role and function of a CFO (Chief Financial Officer) and a
controller.
A controller is in charge of overseeing a company's daily financial operations; a
chief financial officer (CFO) is in charge of overseeing the company's overall
financial operations.
 The Chief Financial Officer (CFO) generally functions as the organization's top
financial officer and reports directly to the CEO or board of directors. The chief
financial officer's main responsibility is to provide the company with strategic
financial guidance, including financial planning, analysis, and reporting. The CFO
is also in charge of controlling the company's financial risks and making sure it
has the funds available necessary to its objectives.

On the other hand, the controller is responsible for managing the organization's
daily financial operations. This includes responsibilities including managing the
accounting department, the internal controls of the company, and supervising
financial reporting and analysis. The controller also ensures that the
organization's financial statements are correct and follow to relevant accounting
standards.

4. What are the areas of financial management in the business?

a. Financial management focuses on decisions on how much and what kinds of
assets to buy, how to raise the capital required to purchase assets, and how
to operate the business to increase its worth.

b. Capital markets- refer to the markets where stock and bond prices and
interest rates are set. The "savers," represented by banks, investment banks,
stockbrokers, mutual funds, insurance firms, and similar entities, get together.
have money to invest and organizations, people, or other entities that require
cash for varied purposes.

c. Investments- relates to a decision concerning stocks and bonds and include

several activities: (1) Securities analysis, which deals with determining the
appropriate valuations of specific securities (i.e., stocks and bonds). (2)
Portfolio theory deals with the best way to structure portfolios, or "baskets," of
stocks and bonds. Choosing a well-balanced portfolio is crucial since rational
investors desire varied portfolios to reduce risks. (3) Market analysis focuses
on the issue of whether the stock and bond markets are "too high," "too low,"
or "about right" at any particular time.

5. What are the opportunities of future financial accountants and financial

managers?

Future financial managers and accountants have a wide range of opportunities.

These are the following opportunities for financial managers and accountants:

a. As the financial services industry grows, more employment openings for

financial professionals are expected. This includes positions in banking,
investment management, and insurance.
b. As businesses continue to expand throughout the world, there will be a rising
demand for financial experts who can work across countries.
c. Technology advancement are changing how organizations manage their
finances. Financial experts that can adapt to new technologies and help
 businesses implement new financial tools and systems will be in high
demand.
d. Risk management is becoming more and more important in the present
organization environment. Financial experts that can help firms identify and
manage financial risks will be in high demand.
e. Financial analysis, tax planning, and financial planning are just a few of the
many specializations available in financial management. Financial specialists
may advance their skills and become valuable resources for their companies.
f. Financial professionals with an entrepreneurial mindset and a strong
financial management skills may choose to begin their own companies or
work as financial consultants.

6. What are the other jobs available for them? (refer to question 5)
There are several jobs available for future financial accountants and managers.
These include the following:
1. Controller: Controllers and assistant controllers prepare financial statements
and reports that summarize and forecast a business's activities and financial
position. They could also create internal policies and procedures for a
company's accounting, cash flow, and credit management operations.
2. Financial managers: Responsible for maintaining an organization's financial
health. They provide financial reports and create plans to help achieve the
organization's long-term financial goals.
3. Management consultants: Give suggestions for improving operating
efficiencies to promote profitability for firms by lowering costs and increasing
revenues.
4. Tax accountants: Prepare tax returns for individuals, corporations, and other
organizations at the federal, state, and local levels.
5. Accounting managers: Control the operations of the accounts department of a
company. They produce financial statements to be presented to the
company's board of directors, support tax processing and analyze and report
financial data.
6. Accountants: prepare and evaluate the accuracy of a company's financial
statements. They make sure that all financial documents, including tax
returns, balance sheets, income and loss statements, cash flow statements,
and cash flow projections, comply with federal laws, rules, and generally
accepted accounting standards (GAAP). Also, they are responsible for finding
and resolving any inconsistencies in documents, statements, or recorded
transactions.
7. Auditor: Internal auditors and audit managers evaluate government regulatory
compliance and identify financial and commercial risks. They assess the
effectiveness of the current internal controls, identify potential improvement
areas, and organize the implementation of internal improvement efforts.

7. Describe ethical standards that covers financial mangers.

The role of ethics in financial management is to balance, protect, and maintain
stakeholders' interests. The following are some of the ethical standards that financial
managers are expected to uphold:
 a. Financial managers must act with honesty and integrity. They must be
trustworthy and transparent in their financial reporting and interactions with
stakeholders. They must refrain from making erroneous or misleading
statements and manipulating financial data.
b. Financial managers must need to retain their objectivity and avoid conflicts of
interest. Rather than relying on their own biases or preferences, they should
base their conclusions on objective data and analysis.
c. Financial managers are responsible for maintaining confidential financial
information's privacy since they regularly have access to it. They must protect
the organization's interests and the privacy of people.
d. Financial managers should be professionally competent. They should
possess with necessary skills to perform their responsibilities properly. Also,
they must continue developing their skills and keep up with industry
advances.
e. Financial managers' responsibility is to act in the best interests of their
organizations and all relevant stakeholders. They are accountable for
ensuring that financial resources are used responsibly and appropriately.

8. Give example of companies that have undergone unethical behaviors or

actions resulting to losses or bankruptcy. (at least 1 company)

 Enron - This energy company committed accounting fraud and inflated their
earnings, which led to their bankruptcy in October 2001. The scandal resulted
in the loss billions of dollars for investors and of thousand jobs.
 The Consumer Financial Protection Bureau (CFBP) fined US bank Wells
Fargo $1.7 billion in civil penalties and more than $2 billion in customer
compensation for a wide range of illegal activities. Wells Fargo's illegal activity
included repeatedly misapplying loan payments, foreclosing on homes, illegally
repossessing vehicles, incorrectly assessing fees and interest, and charging
surprise overdraft fees. According to CFPB officials, this fine is the biggest
penalty imposed by the agency. This unethical behavior harmed over 16
million consumer accounts over several years and led to a loss of consumer
trust.

9. Who are the governing bodies for financial management practice in both
local and international setting?

Local
1. Bangko Sentral ng Pilipinas (BSP)- responsible for promoting and maintaining
price stability, a strong financial system, and a safe and efficient payments
and settlements system conducive to sustainable and inclusive growth of the
economy.
2. Securities and Exchange Commission (SEC)- works with the Bangko Sentral
ng Pilipinas and Insurance Commission. It is responsible for supervising and
regulating the issuing and trading of securities, protecting investors, and
fostering transparency and fairness in the securities market.
 3. Insurance Commission (IC)- supervises and regulates the operations of the
insurance companies, protecting policyholders and fostering the stability and
growth of the insurance industry.
4. Department of Finance (DOF)- manages the government's financial
resources. Its responsibilities include developing financial markets, generating
income, mobilizing resources, and formulating policies.
5. Philippine Deposit Insurance Corporation (PDIC)- protects depositors by
providing deposit insurance coverage for the depositing public and helps
promote financial stability. In the case of bank failure or liquidation, it protects
depositors.

International
1. International Monetary Fund (IMF)- is an international institution that promotes
monetary cooperation among countries, supports economic growth and
stability, and facilitates international trade. It provides its member countries
with technical support, financial assistance, and policy guidance.
2. World Bank- an international financial organization that provides financial
support to developing countries through loans, grants, and technical
assistance. It also performs research and analysis on issues related to
economic growth and financial management.
3. International Association of Insurance Supervisors (IAIS)- is an international
standard-setting organization that promotes effective and internationally
uniform supervision of the insurance sector. It promotes and develops
guidelines and standards for regulating insurance markets and firms.

References

Bangko Sentral ng Pilipinas Citizen’s Charter. (n.d.). Bangko Sentral Ng Pilipinas

Citizen’s Charter.
https://www.bsp.gov.ph/SitePages/CitizensCharter/CitizensCharter.aspx#:~:text
=The%20primary%20objective%20of%20the,the%20convertibility%20of%20the
%20peso.

Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management.

Cengage.

Business Ethics for a Finance Manager. (n.d.). Small Business - Chron.com.

https://smallbusiness.chron.com/business-ethics-finance-manager-20490.html

Customs Administrative Order No. 3, s. 2016 | GOVPH. (2016, October 3).

Department
of Finance | Official Gazette of the Republic of the Philippines.
https://www.officialgazette.gov.ph/2016/10/03/customs-administrative-order-
no-3-s-2016/

Egan, M. (2022, December 20). Wells Fargo ordered to pay $3.7 billion for “illegal
 activity” including unjust foreclosures and vehicle repossessions | CNN
Business. CNN. https://www.cnn.com/2022/12/20/investing/wells-fargo-cfpb-
foreclosure-fine/index.html

2.3 Role of the Board of Directors - Principles of Finance | OpenStax. (n.d.). 2.3 Role
of the Board of Directors - Principles of Finance | OpenStax.
https://openstax.org/books/principles-finance/pages/2-3-role-of-the-board-of-
directors