Roles of a Financial Manager

Roles of a Financial Manager

  • Submitted By: mizfit36
  • Date Submitted: 02/09/2010 9:26 AM
  • Category: Business
  • Words: 803
  • Page: 4
  • Views: 781

Role of Financial Manager
Reggie Anderson
Finance for Managerial Decision Making 554

William Crockett
Role of the Financial Manager Paper

The role of the financial manager has in maximizing shareholders value is key to the achieving the goals of the shareholders. The financial manager performs double duty working toward achieving profits for the company and optimizing the shareholders value. The flexibility of having the ability to hear viewpoints from different angles to achieve the goals of both the shareholders and the company’s manager. Today’s financial manager must have the skills and strength to evaluate and assess risks to help their company maintain a competitive edge. The responsible of the financial manager in maximizing shareholders and use real-time financial information to take advantage of the latest opportunity to capitalize on an investment. According to the text the financial managers works to achieve the goals of shareholders because shareholders are the owners of the company that employs the financial manager. This can give rise to conflict when a manager makes decision because of the needed to make decisions based on shareholders approval and what is best for the company ongoing success.
Sometimes the goals of shareholders can tempt the financial manager to make unethical decision in managers attempt to maximize the goals of the shareholder value. Other times companies will have a disregard of shareholders values and not only disregard reducing expenses but foster an environment where financial abuse takes place from renting luxury cars to doing business at the most expensive hotels. This behavior is important in evaluating the roles that financial managers have when attempting to justify how they plan on maximizing shareholder value. If a financial manager has numerous perks that are costly to the company a determination should be made as to whether the goals of...

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