Key areas of responsibility

In this lesson

1. 0:00 Key areas of financial manager responsibility
2. 0:54 Investment decisions and shareholder wealth
3. 2:26 Financing decisions and capital structure
4. 4:00 Dividend decisions and earnings retention
5. 5:11 Stakeholder communication and engagement
6. 7:15 Financial planning and performance control
7. 8:38 Risk management and mitigation techniques

About this lesson

The video explores each decision in detail. Investment decisions involve selecting projects using techniques like net present value and internal rate of return, whilst balancing capital allocation with non-financial factors such as ethics and sustainability. Financing decisions focus on raising capital efficiently—choosing between equity and debt to optimise your cost of capital and gearing level. Dividend decisions determine how much profit to distribute to shareholders versus retain in the business. Beyond these primary responsibilities, you'll also learn about the financial manager's secondary objectives: communicating clearly with both internal and external stakeholders, planning and controlling finances through budgeting and performance monitoring, and managing financial risks including interest rate, currency, and investment risks. Understanding these interconnected responsibilities will help you grasp how senior finance professionals create value and maintain stakeholder confidence in real business environments.

Duration: 10m