What is the primary role of a financial manager?

The primary role of a financial manager revolves around making investment and financing decisions that are focused on maximizing shareholder wealth. This encompasses evaluating investment opportunities, managing capital structure, and ensuring that the company is effectively utilizing its financial resources to generate the highest possible returns for its shareholders.

Financial managers analyze various financial data to determine the best ways to allocate resources, assess risks, and plan for future financial growth. Their decisions directly impact the company's profitability and ability to compete in the market, ultimately influencing the value of shareholders' investments.

In contrast, overseeing daily business operations, ensuring compliance with financial regulations, and managing marketing strategies, while important functions within a company, fall outside the core responsibilities of a financial manager. Their primary focus is strategically directing financial activities to build long-term shareholder value.