Financial manager Role

Financial manager is an important position within the structure of any firm. A financial manager is responsible for providing financial advice and support to clients and colleagues to enable them to make sound business decisions. Financial managers oversee the preparation of financial reports, execute cash management strategies, and direct a corporation’s investment activities.

Financial Manager Role

1. Mobilization of funds
2. Deployment of funds
3. Control over the use of funds
4. Risk and Return trade off

1. Mobilization of funds: Every organization must have right amount of finance at the right time to achieve its objectives. For this purpose the finance manager must study the financial markets (both global and local) carefully, and identify those markets from where he can get the required funds at an accepted cost.

2. Deployment of funds: The financial manager studies the risk and return of a particular project and compares it with other projects and thereafter decides in which project he has to invest.

3. Control over the use of funds: Control is necessary at every stage of plan execution. If the desired results of the plan are to be achieved then at every stage of execution the manager has to give a check and a control, if necessary.

4. Risk and Return trade-off: It is the duty of the finance manager to achieve right balance between risk and return while taking the decisions regarding investment and financing.