FINANCIAL MANAGMENT.

Added on - 21 Sep 2019

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Running head: FINANCIAL MANAGMENTAMP LIMITEDFinancial ManagementStudent Name:Course work:University:
FINANCIAL MANAGEMENT1Table of ContentsIntroduction......................................................................................................................................2A.Chief Financial Officer Roles and its Impacts.........................................................................2Three responsibilities of CFO......................................................................................................2Impact of responsibilities on the Company’s objective...............................................................4B.Pension Fund Manager and EMH............................................................................................6Efficient market hypothesis.........................................................................................................6Conclusion.......................................................................................................................................8References......................................................................................................................................10
FINANCIAL MANAGEMENT2IntroductionIn this present paper, we will discuss the roles and responsibility of chief financial officer and theimpact of their responsibilities on the objective of the company. The company is AMP limitedwhich is a non-financial company in Australia since 1849. The company provides financialservices with superannuation and investment products, financial advice, insurance, loans such ashome loan and others. The paper also describes the case in which is the efficient market is true,the pension still not select a portfolio with a pin.A.Chief Financial Officer Roles and its ImpactsThe AMP limited is a non-financial Australian stock exchange listed public company. Thecompany has largest stockholders register. The Chief financial officer plays a vital role in thenon-financial company. The company is having four main areas of business, namely, advice andbanking, insurance and superannuation, customer solution and AMP capital (AMPet al., 2016).The CFOs roles and responsibilities are continues which includes stretched and scrutinized formaintaining the high-level view of an organization, balancing short-term activities such asliquidity management, business integrity, strategic leadership, managing innovations and others.Three responsibilities of CFOFollowing are the principles of CFO:a.Create value:The value creation is done through developing a sustainable strategywhich helps to create the value in the organization.
FINANCIAL MANAGEMENT3b.Enable value:The CFO enables the value in the organization through supporting the toplevel management and government bodies in decision making and strategy formulationwhich is directed towards the goals and objective of the company.c.Preserve value:The value is preserved through managing the risk, asset and liabilitymanagement which helps to achieve the goals and objectives of the organization. Theinternal control system is implemented and monitor for the effective system.d.Report value:The business reporting should be used for an internal and external system which helps toensure relevant and useful reporting in the organization.Following are the three major responsibilities of chief financial officer:1.Controllership dutiesThe Chief finance officer is responsible for presenting and reporting accurate historicalfinancial information timely which helps to take a decision and developing strategies ofthe company. The investment decisions are based on the information presented by CFOso it should be accurate because the crucial decisions are based on the reports presentedby CFO (McKinney et al., 2015). It is one of the main responsibilities of CFO to presentthe reporting which is used by the stakeholders for taking financial decisions.2.Treasury dutiesThe CFO is responsible for the financial condition of the company which is based on thestrategy formulation and decision making by CFO. The CFO is responsible for theliquidity, risk management, capital structure, debt-equity ratio and others financialaspects which directly impacts on the profitability of the company. The CFO acts as abackbone of the company because the financial conditions directly impact on the
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