Tuesday, 18 August 2015

Managing Financial Resources (MFR)

Managing Financial Resources 

I was quite nervous at the start of this module as I always believed that finance and accounting were very complex subjects. I was concerned about quickly grasping the theory, especially on economic concepts and financial ratios, as my experience in project environments never exposed me to the depth of finance covered in this module. I had to ask myself, 
what learning process would allow me to adequately understand the core concepts? 
So, I volunteered to assist one of the business managers at work to get hands on experience of managing financial resources in our environment and relate the module content to this work. It worked to an extent only.

The math portion of this module was great – developing cash flows, income statements, balance sheets etc. Even the ratio calculations and subsequent analysis and conclusions made on the ratios was easy to grasp. Sounds like an easy module, right? Wrong! I struggled with the economics portion of the module. For example, I understood Porters 5 forces, but struggled to use the actual finance numbers to justify my conclusion. Decision making was another section that took a lot of time to understand. Once again, I understood the decision making techniques but could not relate it back to the numbers. This was also true for budgets.

This module has taken me out of my comfort zone, and allowed me to work closely with the business managers in the Chief Operating Officer’s business unit. When interpreting the company’s financial statements, I realized how large our company really is and the considerable amount of work that goes into preparing these statements as well as the impact of decisions taken based on the analysis of the financials. 

I just passed the assignment, which was disappointing, but a true reflection of my understanding of the module. I have a lot more to do on this module and cannot say I fully grasped all the concepts. 

2 more assignments and 3 exams left for this year!!

An eye opening ... ME



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