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Describe what management means to you in your own words.

Describe what management means to you in your own words.

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Answer #1

Management can refers to any form of management within an organization within the broad scope of finance

1. Financial Management

2. Portfolio Management

3. Risk Management

1. Financial Management -  Financial management is important because this supports long term sustainability of the business. The important components of financial management are maintaining a good debt to equity ratio, having a healthy bottom line and good revenue sources. The management should reduce expenses and improve operational efficiency to increase the income to the shareholders of the business.

2 Portfolio Management - Portfolio management can apply to personal or business as well. It involves the management of Stocks, bonds, mutual funds and other investment classes that the investor may choose to invest in.

3. Risk Management - This involves managing the risk in a business. If a project in the business is considered very risky and has a risk coefficient higher than that of the overall business, risk management is used to determine whether it is good to go ahead with this project or not.

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