Study Guide

Objective

Having completed this study unit

- You recognize the meaning of financial management to an organisation and its operations.

- You are able to identify potential financial risk factors and changes in the economic environment and foresee their effects on the organisation.

- You know the basics of profitable business and financial thinking.

- You are able to identify the key financial ratios and measures and you are able to analyse their effect to the organisation.

Competences: Proactive Development Competence, Business and Financial Management Competence

Content

Theme 1. Organisation’s finances: overview, observation of changes in operating environment, impact of the economy on operations, financial risks and financial management

Theme. 2. Getting to know the financial statement: income statement and balance sheet for limited liabilities company and association, basics of profitable business.

Theme 3. Financial analysis: different analysing methods, financial ratios, measures, and decision making.

Assessment criteria, satisfactory (1)

Level 1
Meaning of financial management and financial thinking:
You recognize the meaning of financial management to an organisation and its operations.   
You are able to identify potential financial risk factors and foresee their impact on the organisation’s operations, taking into account changes in the operating environment.  
You know the basics of profitable business and financial thinking.  
You are able to identify the key financial ratios and performance measures and you are able to analyze their effect on the organisation.  

Level 2
Meaning of financial management and financial thinking:
You know the importance of financial management to an organisation and its operations.    
You are able to describe potential financial risk factors and foresee their impact on the organisation’s operations, taking into account changes in the operating environment. 
You know and are able to describe the basics of profitable business and financial thinking.  
You know the key financial ratios and performance measures that describe the financial situation of the organisation.

Assessment criteria, good (3)

Level 3
Meaning of financial management and financial thinking:
You understand the importance of financial management to an organisation and its operations.   
You are able to describe by using examples potential financial risk factors and foresee their impact on the organisation’s operations, taking into account changes in the operating environment. 
You understand the basics of profitable business and financial thinking. 
You understand the key financial ratios and performance measures that describe the financial situation of the organisation.  

Level 4
Meaning of financial management and financial thinking:
You have a command of the importance financial management to an organisation and its operations.   
You are able to assess potential financial risk factors and foresee their impact on the organisation’s operations, taking into account changes in the operating environment. 
You understand the role of key figures and performance measures in monitoring an organisation’s finances and know how to use them to make financial management decisions.

Assessment criteria, excellent (5)

Level 5
Meaning of financial management and financial thinking:
You are able to evaluate and analyze the organisation’s operations from the perspective of financial management.  
You are able to critically assess potential financial risk factors and foresee their impact on the organisation’s operations, taking into account changes in the operating environment. 
You are able to utilize the key financial ratios and performance measures in planning your operations and analyze their results.