The Finance
Department
Statistics & Risk
Management
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Finance Management
 The CFO is primarily responsible for
managing and growing an organization’s
assets
– Finance Department
– Accounting Department
Copyright © Texas Education Agency, 2012. All rights reserved.
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Primary Goals
 Gather Raw Data
 Process Statistics
 Present Findings
Copyright © Texas Education Agency, 2012. All rights reserved.
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Who is Interested?
 Executives and Management
 Stockholders
 Lenders
 Taxing Bodies
 Governmental Agencies
 What do you think each of these groups
would be interested in?
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Interested in What?
 Industry Trends
 Past Sales/Profits (Losses)
 Assets (Including Cash)
 Liabilities
 Innovations and Projections
 What do you think is the most important
area to analyze?
Copyright © Texas Education Agency, 2012. All rights reserved.
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Truth, Nothing But the Truth.
 A loss in trust is hard to recover from.
 Customers want to buy from successful,
honest firms.
 Supplier-Partners want to service reliable,
honest firms.
 Why do you think that is true?
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Rules in Business Finance
 Those who need financing the most will have
the most difficult time acquiring financing.
 Lenders already in for a “penny” will
probably lend a “pound”.
 Too Big to Fail………………..
Copyright © Texas Education Agency, 2012. All rights reserved.
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