BSBFIM801
Manage financial resources


Application

This unit describes the skills and knowledge required to manage financial resources in a complex environment for a substantial business unit or organisation.

Leaders are typically required to forecast future financial resource needs, analyse current asset performance and capacity to a standard expected in a commercial environment, and to set business targets. There is a requirement to manage compliance mechanisms, to manage financial risk within agreed plans and mechanisms, and to monitor compliance with financial projections.

It applies to the management of financial resources relating to complex and diverse operations or projects and is an important aspect of work for managers or leaders.

It may relate equally to small-scale activities within a small to medium-sized organisation or a significant activity in a large organisation.

No licensing, legislative or certification requirements apply to this unit at the time of publication.


Elements and Performance Criteria

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1 Forecast future financial resource needs

1.1 Establish and report on the capacity of existing financial systems

1.2 Forecast financial data and business system requirements

1.3 Analyse forecasted requirements

1.4 Prepare and plan budget forecasts according to organisational and statutory requirements

1.5 Prepare and present recommendations for budget expenditure or for modification of existing projections

2 Analyse current asset performance and capacity

2.1 Analyse the costs of, and returns from, assets and liabilities using standard accounting techniques to identify extent of debt and equity financing

2.2 Establish management responsibilities and legal requirements for reporting, in consultation with relevant organisational staff

2.3 Analyse and interpret financial reports and key information

2.4 Analyse and evaluate the effects of financial decisions on the ability of the organisation to meet planned outcomes

3 Set business targets and compliance mechanisms

3.1 Collect comparative and trend information and confirm needs for future budget and associated resources

3.2 Complete negotiations to secure resources in accordance with relevant shortterm and longterm needs

3.3 Allocate resources against the budget to maximise organisation’s performance

3.4 Maintain accurate and uptodate records of resource allocation and usage according to organisational and legislative requirements

3.5 Develop and review management systems which enable timely collection, management and processing of information

3.6 Complete and accurately report records of budget performance and expenditure according to organisational procedures and statutory requirements

3.7 Evaluate and improve budget audit mechanisms and compliance requirements as required

4 Manage financial risk

4.1 Identify and analyse financial risk factors

4.2 Document and manage financial risks according to organisational policies and procedures

4.3 Implement procedures to regularly review financial risk management activities

5 Monitor compliance with financial projections

5.1 Identify deviations from budgets that generate an adverse effect on budget objectives

5.2 Promptly develop action plans to remedy significant deviations from budget objectives and projections

5.3 Monitor and review financial documentation against organisational objectives

5.4 Revise and renew budget priorities to meet operational contingencies and risk management

5.5 Manage costs to targets set in the budget

Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.

Skill

Performance

Criteria

Description

Reading

1.1, 1.3, 1.4, 2.1, 2.3, 2.4, 3.1, 3.4-3.7, 4.1-4.3, 5.1-5.3

Identifies, analyses and evaluates complex text from a variety of sources to determine business requirements

Writing

1.1, 1.2, 1.4, 1.5, 2.2, 3.1, 3.4-3.6, 4.2, 5.2-5.4

Records data accurately using relevant format, style and language suited to context and audience

Prepares specific information which clearly conveys an understanding of outcomes and uses terminology appropriate to present to relevant personnel

Oral Communication

1.5, 2.2, 3.2

Articulates information concisely using appropriate terminology, tone and style

Uses questioning and listening techniques to exchange and clarify information

Numeracy

1.1-1.5, 2.1, 2.3, 2.4, 3.1, 3.3, 3.4, 3.6, 3.7, 4.1, 5.1, 5.3, 5.5

Collects, records, analyses and adjusts numerical data using appropriate methods

Navigate the world of work

1.4, 2.2, 3.4, 3.6, 5.3, 5.4

Recognises, understands and applies applicable legislation, industry standards and organisational policies and procedures in the conduct of own work

Interact with others

1.5, 2.2, 3.2, 3.6

Tailors communication to achieve its purpose, demonstrating an understanding of the needs, interests, issues and priorities of each audience

Collaborates and negotiates with others to achieve joint outcomes, playing an active role in facilitating effective group interaction and influencing direction

Get the work done

1.1-1.4, 2.1, 2.4, 3.1, 3.3, 3.5, 3.7, 4.1, 4.3, 5.1, 5.3, 5.4

Uses logical processes in planning, implementing and evaluating complex tasks to achieve stated goals

Identifies problems, establishes the causes and applies analytical processes to formulate a course of action and criteria in addressing issues

Takes responsibility for high impact decisions in complex situations involving many variables and constraints

Defines benefits, costs, risks and feasibility from a broad range of perspectives and may think laterally to redesign aspects to address potential issues


Sectors

Finance – Financial Management