H2.3 Financial Management Processes

This topic is the most central to the application and understanding of Financial Management. You'll notice that there are relatively less Financial Management Strategies compared to the other key functions of Operations, Marketing and Human Resources.

It is in the process topic that the most critical skills are covered - that is, being able to interpret financial data and diagnose the problems of businesses. In this topic, you'll gradually see that numbers tell a story. Once you can determine the issues a business is facing, you'll then be able to administer the appropriate strategy as a remedy (the medical model again).

The most common and likely questions in the HSC examination for this topic focus upon financial ratios, their interpretation, and a relevant strategic response. Many students are scared off by the mathematics. I have found that once the concept is grasped, the math is easy - and by the way, you do not even need to memorise the ratio formulas. All we want to see is that you can apply the ratio and interpret the result.

This topic covers: