Financial Management Essay

Submitted By randimad
Words: 1235
Pages: 5

CFOs and Strategists: Forging a
Common Framework

One most important objective of Financial Management is to maximize shareholders profits (value), accomplish a place between competitive advantages would be another goal of business strategy. A CEO is a person who is responsible achieving this level of his business decided the short or long term vision and predict the best way to accomplish that.
I would like to talk about the different between short and long term plan for financial managers
Short-term Goals
When you're establishing your financial plan, the first thing you need to do is identify both your short-term and long-term goals. Identifying goals and a plan to support them can bring you assurance of a sound financial future. Without clearly identified goals and a supportive plan, there’s the tendency to mismanage your money with fruitless spending leading to the potential for financial trouble.
Think of your goals as the foundation for your financial plan. Each financial goal should have a time horizon and can be a stepping stone for a future goal. Short-term goals differ from long-term goals usually in the sense of timing. Short-term goals are generally smaller in scope and dollar amount with a definite target date for accomplishing them.
Long-term Goals
There are short-term goals and long-term goals and some goals that fall in between. The distinction between the categories is usually related to the amount of time it takes to accomplish the goal and the financial commitment to achieve them. Short-term goals are achievable in the more immediate future and intermediate goals take slightly longer and more of a financial commitment. Long-term goals usually take more than five years to accomplish and require a disciplined saving and investing strategy over a long time period. The most important long-term financial goal for everyone is to save for retirement. For most people, this is the first priority over saving for any other goal.
The first step is to develop good savings and investing habits and establish a financial plan when you're young. If you start contributing to an employer's 401(k) plan or an IRA or Roth IRA as soon as you begin working, and consistently put money in those retirement accounts, you'll be on the right track to accumulate enough money for your retirement years.
I am still looking and finding this important part that manager want to create sustainable competitive advantage for a long term with a long forecasting indications to improve the value but should be with long term productivity I read this interesting article about how to shareholders value and I like to add it while I am thinking it is important point to discuss.

Creating Shareholder Value
Critics imply that managing for shareholder value is all about maximizing the short-term stock price. Companies that manage for shareholder value, the thinking goes, do whatever it takes to engineer an ever-higher market price. That is a profound misunderstanding. The premise of shareholder value, properly understood, is that if a company builds value, the stock price will eventually follow. The objective is to build value and then let the price reflect that value.
While some executives allow that they should not manage to increase the short-term stock price, they remain reluctant to embrace the concept of managing for shareholder value. It is worth explaining why this is the right objective, and how other stakeholders — including employees, customers, and suppliers — fit into the picture.

Making the Financial Markets Safe
The second case which is talking about making financial market safe, financial crisis and risk
Management are two most important area that we should aware in our forecasting and prepare for all possible risk to know latter what to do. It hard to predict specifically but having some initial plan would help.
The impact on risk management failure of financial crises
An extensive report released by the…