Pragi Washkhiyar, FMRA, BBA 5th Sem

NAME - Pragi Washkhiyar
DEPARTMENT - BBA
SEMESTER - 5th
ROLL NUMBER - 22105021001
SUBJECT - Financial Management and Risk Analysis
COLLEGE - Gurukul Management Studies
TABLE OF CONTENTS
1 2 3
INTRODUCTION FINANCIAL MANAGEMENT IMPORTANCE OF FINANCIAL
MANAGEMENT
4 5 6
NATURE OF FINANCIAL SCOPE OF FINANCIAL
CONCLUSION
MANAGEMENT MANAGEMENT
INTRODUCTION
Finance is essential for every business enterprise to out its activities, because
finance is basic foundations of all kinds of modern economic activities.
It involves planning, organizing, controlling and monitoring financial resources to

acheive the organization’s goals. It’s about making sure that money is used wisely
and effectively to acheive it’s goal.
Well said that business requires money to make more money. Efficient management
of business is only possible with efficient management of money. Businesses needs
to invest in various areas like new equipment, technology,marketing and research to
stay competetive. Efficient money management ensures that these investments are
made wisely and efficiently to generate more money and acheive growth and
success.
FINANCIAL MANAGEMENT
Finance management is always concerned about acquisition of funds and their
utilization. No business activity can be done without finance. Every kind of
business organization whether it is small, medium or big it needs finance. Financial
management is a part of the management activity which is concerned with the
planning and controlling of firms financial resources.
According to J.S. MASSIE : “Financial management is the operational activity of

a business that is responsible for obtaining and effectively utilizing the funds
necessary for efficient operations.”
IMPORTANCE OF FINANCIAL
MANAGEMENT
1. Successful promotion
2. Smooth running of an enterprise
3. Co-ordination between various activities
4. Decision making
5. Solution to business problems
6. Measures the performance

NATURE OF FINANCIAL MANAGEMENT
1. Financial management helps in decision making of top management.
2. Financial management helps in measurement of performance.
3. It is an integral part of business decision-making process.
4. It is a continuous process.
5. It also has a wide scope.
6. It is the centralized nature of finance function i.e. investment, financing and

divdend decision.
7. All forms of business organization, big or small needs to manage finance.

SCOPE OF FINANCIAL MANAGEMENT
1. Risk Management : Identifying financial risks that could may be or potentially
impact the organization and developing strategies to reduce the risk which could
affect the organization’s stability. This includes managing currency risk, interest rate
risk, credit risk, and other financial exposures.
2. Working Capital Management : Managing the day-to-day operational finances

of the organization, such as managing inventory, accounts receivable and accounts
payable. The goal is to ensure that the organization has enough liquidity to meets
it’s short tems obligations.
3. Financing decisions : With determining the optimum mix of debt and equity
financing to fund the orgainzation’s operations and investments. Financial managers
must consider factors like cost of capital, capital structure and financial leverage.
SCOPE OF FINANCIAL MANAGEMENT
3. Financial Analysis and Reporting : Analyzing financial statement and
financial performance to assess’s the organizations overall financial health and
identify areas of improvement. It also involves preparing financial reports for
internal and external stakeholders.
4. Financial Control : By implementing control mechanisms in finance to

make sure the financial resources are used efficiently and effectively. It
involves monitoring financial performance against established targets and
taking corrective actions when neccessary.
5. International Finance Management : Dealing with financial issues related

to financial operations, such as foreign exchange risks, global financing and
international taxation.
CONCLUSION
In conclusion we can say that, financial management is crucial
function that plays a central role in the success and sustainability of
any organization’s. Whether it’s a business, government entity or
non profit. The main goal of financial management is to optimize the
allocation of financial resources making wise decisions to maximise
retrns while minimizing risks.
Financial management also involves watching out for any financial
risks and coming up with a plan to deal with unexpected situations. It
is all about planning, saving, investing, borrowing and being careful
with money to acheive your goals and to keeps your finances in a
good and healthy shape. This all principles are important for making
smart money decisions and securing your financial future.
THANK YOU

Pragi Washkhiyar, FMRA, BBA 5th Sem

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Pragi Washkhiyar, FMRA, BBA 5th Sem

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NAME - Pragi Washkhiyar

It involves planning, organizing, controlling and monitoring financial resources to

According to J.S. MASSIE : “Financial management is the operational activity of

2. Smooth running of an enterprise

3. Co-ordination between various activities

5. Solution to business problems

6. Measures the performance

2. Financial management helps in measurement of performance.

3. It is an integral part of business decision-making process.

5. It also has a wide scope.

6. It is the centralized nature of finance function i.e. investment, financing and

7. All forms of business organization, big or small needs to manage finance.

2. Working Capital Management : Managing the day-to-day operational finances

4. Financial Control : By implementing control mechanisms in finance to

5. International Finance Management : Dealing with financial issues related

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