Role of Finance Manager

In the area of finance and financial management, finance manager is important authority. Not only to raise the finance of company, finance manager do also other lots of works for company. We can explain his role in following words.

1. Role of Finance Manager for Raising Funds of Company

Finance manager checks different sources of company. He did not get fund from all sources. First, he check his need in short term and in long term and after this he select best source of fund. He has also power to change the capital structure of company for giving more benefit of company.

2. Role of Finance Manager for Taking Maximum Benefits from Leverage 

Finance manager uses both operating and financial leverage and try to use it for taking maximum benefit from leverage.

3. Role of Finance Manager for International Financial Decision

Finance manager finds opportunities in international financial decision. In these opportunities, he does the contracts of  credit default swap, interest rate swap and currency swap.

4. Role of Finance Manager in Investment Decisions 

Finance manager checks the net present value of each investment project before actual investment in it. Net present value of project means what net profit at discount rate, will company gets if company invests him money in that project. High NPV project will be accepted. So, due to high responsibility, role of finance manager in this regard is very important.

5. Role of Finance Manager in Risk Management 

Happening of risks means facing different losses. Finance manager is very serious on risk and its management. He plays important role to find new and new ways to control risk of company. Like other parts of management, he estimates all his risks, he organize the employees who are responsible to control risk.He also calculates risk adjusted NPV. He meets all risk controlling organisations like insurance companies, rating agencies at pervasive level. He is able to convert company’s misfortunes into fortunes. By good estimations of averse situations, he tries his best to safeguard the money of company.

– See more at: http://education.svtuition.org/2011/08/role-of-finance-manager.html#sthash.vzye9hVP.dpuf

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