Elements and Performance Criteria
- Review data
- Analyse costs of and returns from assets and liabilities using standard accounting techniques to identify extent of debt and equity financing
- Use data to identify costs of different forms of capital to organisation
- Standardise asset and liability estimates and valuation criteria, and regularly adjust in line with changes to environmental factors
- Determine options
- Establish long-term and short-term periods for organisation by reference to strategic goals, cash flow requirements and operational objectives
- Identify long-term financing requirements and cost in line with organisation’s expected revenue returns, cash flows and asset base
- Research sources of financing and evaluate to determine compatibility with organisation’s finance strategy
- Identify and examine investment analysis and financial planning requirements
- Implement strategies
- Structure financial plans to meet strategic goals and provide returns within long-term and short-term operational objectives
- Develop short-term and long-term objectives for organisation’s capital structure in line with operational and strategic plans
- Establish internal control procedures in consultation with stakeholders to support implementation and to meet possible emergencies with portfolio management techniques applied
- Evaluate outcomes
- Monitor interrelationships between long-term and short-term objectives to ensure consistency of returns between operational and investment plans
- Assess costs and returns to determine ongoing viability of strategy
- Regularly review tax efficiency of financial strategy to maintain optimal returns from assets