Financial management

Financial management (FMs) are highly skilled individuals who report directly to senior management, most typically the financial director (FD); the role is referred to as 'Staff' rather than "Line". Profitability, expenses, cash flow, and credit are all concerns of financial management in an organisation, which is defined as ensuring that the "organisation has the means to carry out its goal as satisfactorily as possible," with the latter being commonly defined as maximising shareholder value.

Corporate finance and financial risk management are both concerned with short-term working capital management, with a particular emphasis on current assets and current liabilities, as well as managing fluctuations in foreign currency and product cycles, often through hedging (see Corporate finance Financial risk management). It also includes day-to-day money management that is efficient and effective, and as a result, it overlaps with the job of treasury administration. It is also involved in long-term strategic financial management, with a particular emphasis on, for example, capital structure management, which includes capital raising, capital budgeting (capital allocation between business units or products), and dividend policy; the latter, in large corporations, falling under the purview of "corporate finance" rather than "finance."