What Are the Duties of Financial Managers?

• Financial managers oversee the financial operations of their company. Jupiterimages/Photos.com/Getty Images

  Financial managers play an extremely important role in the ongoing survival of financial firms, banks and other companies where investment and financial planning are central. According to the Bureau of Labor Statistics (BLS), financial managers made a median salary of $99,330 in May 2008. Such a financially rewarding career comes with great responsibility.

Oversight

• One of the most important duties for financial managers is to oversee the financial development of a company. Financial managers provide oversight in the creation of financial reports, develop cash management strategies and make key decisions regarding the investment activities that their company engages in. Financial managers in banks or investment firms who oversee a particular branch or department often coordinate the financial activities of workers under their direction.

Cash Management

• Some financial managers, known as cash managers, manage the flow of money in and out of a company in terms of disbursing payments and keeping track of money coming into the company. Cash managers keep track of this flow of cash into and out of the company in order to make projections about future income and financial need.

Minimizing Risk

• Another type of financial manager, known as a risk manager or insurance manager, tries to minimize the amount of financial risk a company takes. He typically oversees various types of programs designed to prevent undue loss. In some cases, this may involve the purchase of various types of insurance policies that protect the company in the event of unforeseen loss. Risk managers must be able to calculate potential risk and plan for it to the best of their abilities. Some develop accounting systems in order to keep close tabs on all financial matters within the company and develop a plan to minimize risk.

Other Tasks

• Financial managers also perform a number of different miscellaneous activities. Some of these include networking within the community in order to increase business and establish relationships with other businesses. This is especially important for banks that want to attract other businesses that may need to borrow money in order to sustain the businesses. Other tasks may include approving or rejecting lines of credit to those businesses, recruiting staff members, preparing reports that are required by financial regulatory authorities when necessary and even training staff members.