Financial management is the application of financial concepts to the financial resources of an organization with the aim of maximizing returns and minimizing financial risks. It involves three types of financial decisions – capital budgeting, financial structuring and working capital decisions.

The banking and financial services sector is one of the fastest growth sectors in the economy. As businesses grow across the economy, more financial resources are required to fund additional or new industrial infrastructure, asset acquisitions, adoption of new technologies and market building activities.

Financial analysis is the process of evaluating business proposals, projects, budgets and other finance-related entities to determine their performances and economic viability. Typically, financial analysis is conducted to determine whether an entity is stable, solvent, liquid or profitable enough to warrant a monetary investment. This is particularly important in credit risk evaluation and loan approval process in a bank or financial institution. For bank officers employed in banking institutions, financial analytical skills are key requirements for front lien banking operations.