Strategic Financial Management and Its Significance
Strategic financial management involves the alignment of a firm's financial resources toward its long-term goals to add value to its shareholders, guarantee sustainability, and optimize resource usage. This stands in contrast to traditional financial management, which is the running of an organization on a daily basis. The process includes planning, risk management, and long-term financial strategies. Other than the reasons listed above, SFM optimizes profitability, manages risks, and provides stability in finance.