10.04
I’m not exaggerating when I say that one of the sexiest words the dictionary is the word “financial”. As a check on this I refer to one of the James Bond films, where the famous agent posed as a great banker. In the ever-repeated scene of the casino, a beautiful young woman aware of his profession question … and what is your specialty? Our hero looks mischievously and replied “my specialty is aggressive take-over’s” (take aggressive, referring to a mode in Mergers and Acquisitions, but with ulterior motives …).
Sure! So, we all want to be financiers but more likely by the fact perform in the area of Financial Management, we are not purged automatically becomes a financier.
Basically an administrator is a professional who plans, organizes, directs, coordinates and controls the operations of a company. The financial manager within this general scheme, makes financial management. In a very summary form, financial management includes some of the following activities:
- Business Strategic Planning.
- Evaluation of Costs and Benefits.
- Define Assets: Capital Budgeting.
- Evaluation Project / Business Case.
- Funding itself and / or third parties.
- Operations: accounting, treasury, inventory.
- Reengineering Financial.
The completion of these activities in our professional prints in a certain way of thinking and feeling. Its ultimate goal is to print a course and order so as to achieve continuity of “normal” operations of the organization. It is natural then that this person feels an aversion to risk, especially if these risks are not their own business.
If the business is producing good yields with sales of pre-cooked meal, it is improper for the Treasury trying to find excess returns in the corn markets of the Chicago Mercantile Exchange. That would be improper cash management.
The Financier in turn, are more focused on performing tasks not so common, we could speak instead of the more extraordinary tasks that control the daily life of a company. For example, a debt re-structuring which decisively change the capital structure of the corporation, not an everyday task. Nor is the creation of a derivative or a synthetic structured finance work. Remove sterling European Forex system is typical of a financier like George Soros. Achieving a successful merger or run an “aggressive take-over” on the Electricidad de Caracas, also is an extraordinary task.
However, the important thing is not of course the extraordinary nature of the tasks of the financier, but his attitude or mind set, that is, their attitude toward risk. To the financier and to J. Bond, the risk is everything is business risk.
The main function of the financier is the proper management or risk management to achieve returns well above those that we could get “normal” within existing resources or better yet, with resources that are not ours.
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