There are various tasks associated with it. They are as under :-
- Capital budgeting
- Risk management
- Financial analysis
- Working capital management
- Foreign exchange & risk management
- Derivatives
- Asset pricing
- Investment banking
- Mergers & Acquisitions
All the aforesaid areas are the seperate fields altogether. One has to develop his insights into various aspects such aspects before he considers himself as the expert in this area of financial excellence.
Finance which is generally considered to be an emotion less subject, but due to the emergence of "SFM" this notion about the finance is undergoing a drastic change.
Finance is slowly converting to phynance i.e. the study about the human. After the big scams like that of stock market by Harshad Mehta or the latest 2G spectrum scam by A Raja has made the impact of human activity very clear.
Next big thing in SFM is the reason behind the organistional structure- why the came up; what the logic behind the big or small size organisation. Various problems are-:
- Agency problems
- Goal conflict
- Rent seeking behavior
- Free ridership
- Bounded rationality.
In the next step SFM talks about the strategy formulation by the company keeping in mind the human behavior.
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