The Impacts and Assertions of International Financial Management – A Review

Abstract

Financial Management is a vital tool in ensuring corporate and organization success. It is important for firms to use assessment and management models or systems with proper balances and checks and in an independent manner without external, internal, or personal interests influencing the process. Financial Management has been one of the utmost reasons of growth, development and production. In accounting processes, long term strategic planning has proved to be beneficial, however overlooking the importance of short term goal management has led corporations and organizations in a position of great depravity and all production has reached a phase of stigma and standstill. Corporations have incurred losses due to inefficient financial management strategies. An array of financial models can be utilized in the identification, assessment and the prioritization of risks within a corporation. The aim of this paper is to research on different international financial systems, analyze, and establish their role as an indispensable tool in managing international finances in corporate governance. The study researched empirical data to find out financial systems and their role in the economy as applicable in corporate governance. This research paper attempts to provide a brief review on the impact of short term financial management in the global standing of the world. It is imperative that organizations should preplan their finances and other fiscal measures, and the process of a well-carried out management has been briefly explained in this paper. The research paper aims at presenting a common understanding and information on the nature of international finance, while explaining its significance, role and impact and calculating its efficiency. International Financial Management is a process very different from that of local and national management of resources and is based on a number of factors, therefore implying its forecasting and growth strength. The paper reflects on the dynamics used in international finance management as well as the approaches carried out as part of controlling the international economy. The findings show that financial management helps in identifying, assessing and putting priority of the financial risks that the organization is likely to come across and putting strategies on how to stop, manage or counter them. However, the process works bilaterally in case of corporations because both financial risk management and corporate governance have a reciprocal relationship where they depend on each other for the success of a corporation regardless of the financial risk model utilized. Financial management is a tool in good corporate governance and good corporate governance is essential through proper controls over financial risk management. There is limited research in comparing effectiveness of different strategies and financial risk models; therefore, it is an area worth being ventured into for future research.