ROLE OF FINANCE EXECUTIVE
Modern financial management has come a long way from the traditional corporate finance. As the economy is opening up and global resources are being tapped, the opportunities available to finance managers virtually have no limits.
A new era has ushered during the recent years for chief financial officers in different organisation to finance executive is known in different name, however their role and functions are similar. His role assumes significance in the present day context of liberalization, deregulation and globalisation.
To sum it up, the finance executive of an organisation plays an important role in the company’s goals, policies, and financial success. His responsibilities include:
(a) Financial analysis and planning: Determining the proper amount of funds to employ in the firm, i.e. designating the size of the firm and its rate of growth.
(b) Investment decisions: The efficient allocation of funds to specific assets.
(c) Financing and capital structure decisions: Raising funds on favourable terms as possible i.e. determining the composition of liabilities.
(d) Management of financial resources (such as working capital).
(e) Risk management: Protecting assets.
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