Name : BHASKAR DAS​

Subject : FINANCIAL MANAGEMENT

Reg. No : 212652484910026​OF 2021-22
Roll No : 26584921020​
Code : HPM506
Topic : FINANCIAL MANAGEMENT AND ITS OBJECTIVE
​
Financial Management
and its objectives
Proper financial management helps organizations achieve their
financial goals and objectives.

By Bhaskar Das
The meaning of Financial Management
1 Definition 2 Important

Financial management refers to the It is crucial for the success of any

process of managing an organization's organization regardless of its industry
financial resources to achieve its or size.
objectives effectively and efficiently.

3 Responsibilities 4 Key objectives

Financial managers are responsible for Financial managers aim to maximize

planning, organizing, directing, and shareholder wealth and increase the
controlling the financial activities of an value of the company by making sound
organization. financial decisions.
Objectives of Financial Management
Wealth Maximization
Financial managers aim to increase the
company's market value, share price, and overall
wealth.
1 Profit Maximization
The primary objective of any organization is to
make a profit.
2
3 Risk Management
Financial managers must also manage various
forms of risk such as financial, market,
operational, and strategic risks.
Types of Financial Statements

Balance Sheet Income Statement Cash Flow Statement

Provides the financial position of a Reports the organization's Shows the inflow and outflow of cash
company at a specific point in time. profitability and financial within a specific period.
performance over a period of time.
Financing Decisions
Equity Financing Debt Financing Hybrid Financing

Provide funding by selling Borrow funds from creditors, such Combination of debt and equity
ownership shares in the company. as banks, financial institutions, and financing.
bondholders.
Risk Management
Identify Risks Analyze Risks

Identifying potential risks is the first step in managing Evaluate the likelihood of each risk occurring and
them effectively. assess the potential impact.

Plan for Risks Monitor and Review Risks

Develop a plan to manage risks and minimize their Continually review risks and make necessary
impact. adjustments to the risk management plan.
Conclusion
1 Importance of Financial Management

Financial management is critical for the success of any organization.

2 Objectives of Financial Management

Financial managers aim to maximize shareholder wealth, profitability, and

control risk.

3 Key Financial Statements

Financial statements such as balance sheets, income statements, and cash

flow statements are important tools for analyzing financial performance.

4 Risk Management

Effective risk management can help organizations avoid or mitigate

potential risks.