Effective financial management is critical for any business (big or small) to survive and grow. It entails planning, organizing, controlling, and monitoring financial resources that can aid in the achievement of the organization's business objectives.
Fremont, CA: B-schools teach financial management to management graduates, which includes aspects such as strategic planning, directing, organizing, and controlling financial endeavors in an organization.
Management graduates also learn how to apply management principles to financial aspects of an enterprise, as well as key aspects related to critical financial decisions. Some fundamental concepts taught include capital budgeting, capital structure, as well as working capital management.
Graduates who enter the finance workforce provide critical input to the organization in investment decisions, financing decisions, and dividend policy decisions. One of the primary roles of a financial management team in large organizations is to maximize shareholder wealth, i.e., to ensure that shareholders earn the most wealth for their investment.
Effective financial management is critical for any business (big or small) to survive and grow. It entails planning, organizing, controlling, and monitoring financial resources that can aid in the achievement of the organization's business objectives.
There are a few emerging trends in finance management that management graduates must learn in order to remain relevant and efficient in the workforce of the future.
Digital Transformation
Financial management is seeing a massive and ongoing focus on digitization and the adoption of new and emerging technologies to improve operational efficiencies and provide superior customer experiences.
The application of artificial intelligence, big data analytics, and machine learning to finance is transforming the financial management domain. There are tools, technologies, and platforms dedicated to financial management, and having hands-on experience will be extremely valuable to the next generation workforce.
McKinsey has identified four digital technologies that are reshaping finance management: automation and robotics, which aid in process improvement; data visualization, which provides end-users with real-time, easy-to-understand financial data; basic analytics, which aid in efficient decision support; and advanced analytics, which can assist businesses in uncovering hidden shareholder value and growth opportunities.
Cryptocurrency
Knowledge of cryptocurrency – a digital or virtual currency secured by cryptography, making it nearly impossible to counterfeit or double-spend – is also required for the future workforce.
Understanding cryptocurrencies, which are decentralized networks based on blockchain technology and have a distributed ledger enforced by a disparate network of computers, is anticipated in the next generation workforce entering the financial management domain.
