Financial management requires planning for the future of an individual or a business organization, to ensure a positive cash flow .It includes the administration and maintenance of all types of financial assets. Moreover, financial management also covers the process of identifying and managing risks. Risks are a very common feature / occurrence in financial management.

The primary aim of financial management is the appraisal rather than the techniques of financial quantification. A financial manager looks at the available data to judge the performance of enterprises / business organizations. Managerial finance is an interdisciplinary approach that borrows it origin from both managerial accounting and corporate finance.

Some experts refer to financial management as the science of money management. The primary usage of this term is in the world of financing business activities. However, financial management is important at all levels of human existence because every entity needs to look after its finances. Without finances, it extremely difficult or rather impossible to survive.

The process of financial management takes its shape at two levels. At the individual level, financial management involves matching the financial expenses according to the financial resources. An individual having surplus cash or access to funding need to be able to take financial decision that are designed to benefit them in the long run and also help them achieve their financial goals in life.

From the organizational point of view, the process of financial management is connected with financial planning and financial control. While aim of financial planning is to quantify various financial resources available and plan the size and timing of expenditure, financial control on the other hand, refers to the monitoring of cash flow.