Financial management

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The previous course in financial management has been offered since 2018 as a specialization in the expanded course "Operational Resource Management". Thematically, this means in companies the entire process planning and process control with regard to the use of financial instruments . The main task is, revenues and expenses wherever possible as in coverage to bring that to the use of leverage (z. B. loans ) can be dispensed with. In order for financial management to take full effect, it is necessary to conduct a large number of analyzes . Based on these analyzes, the substantiated planning is carried out. The planning includes periods of a few days up to long-term periods, which - depending on the type of company - can extend over several years. An example is the development of a new car, which usually takes two to three years.

Tasks of the finance industry

Financial analysis

The financial analysis primarily includes the collection and evaluation of data from all areas. The collected and evaluated data form the basis for all other financial management processes. The financial analysis is structured as follows:

Preparatory phase

Evaluation phase

  • Implementation of corrections to the data to depict realistic company values such as B. the uncovering of fictitious profits or the consideration of extraordinary results.

Evaluation phase

Control phase

  • In the control phase, the operational and strategic influence of financial company decisions takes place.

Financial planning

The following goals / strategies are pursued for financial planning:

  • Determination of the capital requirement (short, medium and long term, safety reserve)
  • Definition of the financial strategy and the financing rules
  • Exploring the financing options (evaluation of alternative financial resources)
  • Obtaining the necessary financial resources (preparation of financial concepts)
  • Securing (absolute and relative) liquidity
  • Creation of a (to be fixed) financial and liquidity plan
  • Maintaining and controlling profitability
  • Maintenance of bank contacts and ongoing reporting.

Financial control

  • Appropriate and optimal use of the available capital
  • Improvement of capital resources
  • Negotiations with the house banks
  • Credit marketing
  • Optimal design of the payment terms
  • Accelerated payment flows (e.g .: payment by customers)
  • Use of cash management and electronic banking for payment transactions
  • Achieving relative independence from individual banks.

Financial control

  • Maintaining the financial balance
  • Proof of use of capital and control
  • Monitoring of bank accounts and credit lines
  • Review of interest statements, value dates and fees
  • Ongoing information acquisition and use of affordable financing options on the market
  • Execution of target-actual comparisons, deviation control
  • Installation of suitable early warning systems.

Development from finance to modern financial management

The traditional approach of finance is characterized by the fact that the consideration is primarily from the point of view of the financier, i.e. the owners and creditors. The focus is on the description and discussion of the forms of financing as well as company facts that have a decisive impact on the financing of the company within its life cycle . These specially treated facts include the establishment of companies, their liquidation, the capital increase and the capital reduction. The description of the forms of capital was treated descriptively from the perspective of financial engineering. The aim was to comply with certain balance sheet structure rules. In the traditional approach, the capital requirement represents a given quantity, so that the question of how to cover this requirement is in the foreground.

In contrast, more recent approaches to financial management focus on the connection between investment and financing issues. Financial management therefore includes the theory and technology of raising capital including capital repayment and capital investment . Both the acquisition and the disposition of financial resources are thus dealt with. Another new approach is the so-called capital market-oriented approach. The characteristics of the approaches are summarized in the following table (see J. Süchting: Finanzmanagement, 6th edition, Wiesbaden 1995):

Traditional approach

  1. External perspective (shaped by banks)
  2. Descriptive method
  3. Isolation of financial decisions with regard to raising capital
  4. Efficiency criterion: compliance with balance sheet structure standards.

Management and decision-oriented approach

  1. Internal approach (analytical, optimization)
  2. Analytical method
  3. Simultaneous decisions about raising and using capital
  4. Efficiency criterion: Contributions to the success and risk position.

Capital market-oriented approach

  1. External perspective
  2. Analytical method
  3. Return demands of the capital provider are understood as the company's cost of capital
  4. Efficiency criterion: market value maximization


  • Joachim Süchting: Financial Management. Corporate Finance Theory and Policy. 6th completely revised and expanded edition. Gabler, Wiesbaden 1995, ISBN 3-409-37157-5 ( series of publications by the Institute for Credit and Finance 1).