MBA EXAM HIBMAT DLA
MBA EXAM HIBMAT DLA
Financial management provides the foundation for proper fund utilization and strategic planning
to uphold fiscal supervision. Managing finances is crucial since it adds value to an organization
and strengthens the customer relationship. Imagine a financial institution (banks or Non-banking
financial institutions) operating under the strict supervision of the central bank. Since the Central
Banks control the monetary mechanism, they can regulate the general functioning of banks by
tweaking repo/reverse repo rate values, etc. Banks essentially earn profits from the difference in
interest income earned from extending loans and interest paid by their customers.
a) List and explain FIVE objectives of financial bank management. (10mrks)
b) Explain the FIVE A’s of financial management. (10mrks)
Risk management has been a very important component of business plan for the banks and an
undercurrent of risk mitigation and planning has always been part of the banking business. There
have been conscious efforts in minimizing the risk without affecting the business opportunities
since the early days of banking. However the increasing volume of business and complexity in
financial transactions and instruments involved and the depth and nuances in risks faced have
considerably increased.