MNC'S Pov. • Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. • It means applying general management principles to financial resources of the enterprise. The Importance of Finance • Finance involves the evaluation, disclosure, and management of economic activity and is crucial to the successful operation of firms and markets. • Sound financial management creates value and organizational ability through the allocation of scarce resources. The Role of Financial Managers • Financial managers ensure the financial health of an organization through investment activities and long-term financing strategies. • Financial managers perform data analysis and advise senior managers on profit-maximizing ideas. They produce financial reports, direct investment activities, and develop strategies and plans for the long-term financial goals of their organization. • Financial managers typically: Cont. • Prepare financial statements, business activity reports, and forecasts, • Monitor financial details to ensure that legal requirements are met, • Supervise employees who do financial reporting and budgeting, • Review company financial reports and seek ways to reduce costs, • Analyze market trends to find opportunities for expansion or for acquiring other companies, • Help management make financial decisions. Emerging Manager • The definition of an emerging manager is by assets under management, but investors will also often consider the length of the desired strategy’s track record, ownership structure, and ethnicity of the key professionals with ownership in the firm.