financial-management

Vocabulary Word

Definition

Financial management is all about managing an organization's money. It involves strategic planning, organizing and controlling of financial resources to reach the company's objectives.

Examples in Different Contexts

In personal finance, 'financial management' refers to the handling of individual or family finances, including budgeting, saving, investing, and planning for retirement. A financial advisor might advise, 'Good financial management starts with a clear understanding of your income and expenses.'

Practice Scenarios

Business

Scenario:

Our quarterly report shows a decline in profit margins. It's crucial we revise our fiscal strategies.

Response:

Absolutely, good financial management practices will help us increase our profit margins.

Public-Policy

Scenario:

The recent audit revealed some discrepancies in the fund usage. We must ensure our financial procedures are transparent.

Response:

We need to implement strong financial management policies to maintain trust and transparency.