Introduction to International Financial Management in India
International financial management of an organization is a complex process, involving its own methods and procedures. It is made even more complex because of the globalization that is making the world’s financial and commodity markets more and more integrated. This process of integration is both across countries as well as markets. Not only the markets but even the organizations are becoming international in their operations and approaches. This changing scenario makes it imperative for professionals pursuing advanced financial management courses to study the field of international finance. Let’s study the scope of international financial management and understand why it is essential to study it.
Scope of International Financial Management
The main objective of international financial management is to arrange sufficient funds for meeting the short-term and long-term goals of an organization. A financial manager has to concentrate on the following areas of international finance function:-
- Estimating Financial Requirements
The fundamental responsibility of the international finance manager is to estimate the short and long term financial requirements of the business. To determine this, the finance manager has to prepare a financial plan for the present as well as the future, based on the past financial data of the business. This includes estimating the amount required for purchasing fixed assets as well as the working capital.
- Deciding Capital Structure
The capital structure refers to the kind and proportion of different securities for raising the required funds. After deciding about the amount of funds required, its time to decide which type of securities should be raised. It may be wise to finance the fixed assets via long-term debts and current assets via short-term debts.
- Selecting a Source of Finance
After preparing the capital structure, the appropriate source of finance needs to be determined. Various sources from which finance can be raised can include share capital, debentures, financial institutions, commercial banks, public deposit or equity, etc. If finance is required for short-term then a bank, public deposits, and financial institutions are appropriate. On the other hand, if finance is required for long-term, share capital and debentures might be useful.
Also Read: Best Practices in Financial Management
Trends in International Trade and Cross-border Financial Flows
Globalization essentially involves the various markets being integrated across geographical boundaries. Integration of financial markets involves the freedom and opportunity to raise funds from anywhere in the world and invest it anywhere through any type of investment. Though the degree of freedom differs from country to country, the end is towards having reduced control over the international markets. As a result of this freedom, anything affecting the international financial markets in one part of the world automatically and quickly affects the rest of the world.
Companies operating in international markets are not the only ones that need to be aware of the complexities of international finance. Even the companies operating in domestic markets need to understand the issues involved. To understand the concept of international finance, you may need the guidance of an advanced financial management course. A financial management online certification is specially designed for those who wish to gain an understanding of advanced concepts and techniques of international finance. Scout the internet for advanced financial management courses, find a one that fits your budget and is credible from a well-known institution to deepen your knowledge in international financial management.
This is for all the finance professionals out there – things are going to get tough, buckle up.
The business environment is an ever-changing one, but changes have picked up the pace since the advent of technology. This is why finance professionals need to stay up-to-date with the recent themes and trends circling the business environment. One such aspect that professionals need to focus on is financial risk. Here’s why.
Prepares You for the Unexpected
By its very nature, financial risk management helps minimize the effects felt by businesses from unforeseen circumstances. Avoiding such catastrophes is considered the most significant and pivotal benefit of financial risk management.
Professionals put in their sweat and blood to create a full-proof financial strategy; however, there are financial challenges that can lead to a disaster. And financial risk management helps prepare for the unexpected. One thing that can help learn how to minimize such effects are online finance courses. These courses help you prepare for every possible financial situation that can go wrong at an organization.
Helps Forecast Potential Problems
This element of financial risk emphasizes on the ability to prevent probable mishaps or overcome them in a controlled manner. It can help maximize a business’s financial opportunity by enabling the management to act swiftly on excellent investment opportunities. It also allows a company to stay ahead of the financial market trend and make quick investment decisions.
Handling unexpected situations leads businesses to maintain high credit and financial status in the business environment. Forecasting risks and opportunities are the main ingredients of a well-composed financial risk management plan. Furthermore, it ensures continued and steady growth in spite of potential risks.
Helps Build an Emergency Fund
Every company needs to have an emergency fund that should cover about three to six months of business expenses. An understanding of financial risk management is what helps professionals build an emergency fund that can mitigate the risk of loss of work or other such risks.
How Can Online Finance Courses Help?
Online finance courses are designed to familiarize professionals with the various instruments available for risk management. One such course you can pursue is the AFRM online professional program by IIM Raipur. Offered on the Talentedge platform, the AFRM online professional program by IIM Raipur covers risk management instruments like futures, swaps, credit derivatives, etc. Additionally, the course also aims to introduce you to some complex instruments which can help you forecast future threats and avail opportunities.
Financial risk management is essential for professionals aspiring to climb up the career ladder. Organizations are bombarded with threats from every direction, and improving your financial risk knowledge and skills can help you not only to advance your career but also to help your organization steer clear of such risks.
So, if you are a working-class financial professional seeking to improve their knowledge and upskill, AFRM online professional program by IIM Raipur is the ideal choice for you.