Last updated on Mar 16, 2024
- All
- Business Administration
- Program Management
Powered by AI and the LinkedIn community
1
Financial strategy
2
Financial policies and procedures
Be the first to add your personal experience
3
Financial plan and budget
Be the first to add your personal experience
4
Financial monitoring and reporting
Be the first to add your personal experience
5
Financial risk management
Be the first to add your personal experience
6
Financial evaluation and learning
7
Here’s what else to consider
Financial governance is the process of ensuring that a program's financial resources are managed effectively, efficiently, and ethically. It involves setting clear roles and responsibilities, establishing policies and procedures, monitoring and reporting on financial performance, and addressing risks and issues. A financial governance framework is a set of tools and practices that support and guide financial governance in a program. In this article, we will discuss the essential components of a financial governance framework and how they can help you achieve your program objectives.
Top experts in this article
Selected by the community from 3 contributions. Learn more
Earn a Community Top Voice badge
Add to collaborative articles to get recognized for your expertise on your profile. Learn more
- Hitesh Chopra 272 x 🏆 Linkedin Top Voice|| Certified Independent Director, EXECUTIVE MBA INSEAD , Former-Accenture, Atos | PMP| PgMP…
2
- Ruperto Agustín Chapoñan Quiroga CIP, PMI (PfMP, PgMP, PMP, RMP)®, PMO-CP®, SFC™, SS YB. Mech. Elec. Eng. | Portfolio Manager | Program Manager | Project Manager | Risk Manager | WEE | BIM | PMO | Contract…
1
1 Financial strategy
A financial strategy is a high-level plan that defines the financial goals, priorities, and principles of a program. It aligns with the program vision, mission, and scope, and provides direction for financial decision-making and resource allocation. A financial strategy should address questions such as: What are the expected costs and benefits of the program? How will the program be funded and sustained? What are the financial risks and opportunities? How will the financial performance be measured and evaluated?
Help others by sharing more (125 characters min.)
- Hitesh Chopra 272 x 🏆 Linkedin Top Voice|| Certified Independent Director, EXECUTIVE MBA INSEAD , Former-Accenture, Atos | PMP| PgMP | PfMP | ITIL Expert
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
Financial Strategy help us define clear and comprehensive financial policies and procedures in alignment with organization objective. To develop this- Have internal control in place to ensure integrityfinancial risks carefully evaluated and mitigation plan createdFinancial Planning and budget in alignment with organization objectivesCompliance and audits in place to ensure effectiveness of governance process
LikeLike
Celebrate
Support
Love
Insightful
Funny
2
2 Financial policies and procedures
Financial policies and procedures are the rules and guidelines that govern the financial operations and transactions of a program. They ensure compliance with relevant laws, regulations, standards, and best practices, and promote accountability, transparency, and efficiency. Financial policies and procedures should cover topics such as: How are the financial roles and responsibilities defined and delegated? How are the financial plans and budgets prepared and approved? How are the financial records and reports maintained and audited? How are the financial controls and safeguards implemented and reviewed?
Help others by sharing more (125 characters min.)
3 Financial plan and budget
A financial plan and budget is a detailed document that outlines the estimated income and expenditure of a program for a specific period of time. It reflects the financial strategy and objectives of the program, and serves as a tool for financial management and control. A financial plan and budget should include elements such as: What are the sources and amounts of revenue and funding? What are the categories and items of costs and expenses? What are the assumptions and contingencies? How are the variances and deviations tracked and reported?
Help others by sharing more (125 characters min.)
4 Financial monitoring and reporting
Financial monitoring and reporting is the process of collecting, analyzing, and communicating the financial data and information of a program. It enables the program stakeholders to assess the financial status and progress of the program, and to identify and address any financial issues or risks. Financial monitoring and reporting should involve activities such as: How often and to whom are the financial reports prepared and distributed? What are the key financial indicators and metrics? How are the financial results compared and evaluated against the financial plan and budget? How are the financial feedback and recommendations incorporated and acted upon?
Help others by sharing more (125 characters min.)
5 Financial risk management
Financial risk management is the process of identifying, assessing, and mitigating the potential financial threats or uncertainties that may affect the program's objectives, outcomes, or benefits. It involves establishing a risk appetite, a risk register, and a risk response plan for the program. Financial risk management should consider factors such as: What are the internal and external sources of financial risk? How likely and how severe are the financial impacts? How can the financial risks be avoided, reduced, transferred, or accepted? How can the financial risk exposure be monitored and controlled?
Help others by sharing more (125 characters min.)
6 Financial evaluation and learning
Financial evaluation and learning is the process of reviewing and reflecting on the financial performance and achievements of a program. It involves measuring and comparing the actual financial results against the expected financial outcomes and benefits, and identifying and sharing the financial lessons learned and best practices. Financial evaluation and learning should address questions such as: How well did the program meet its financial goals and priorities? What were the financial successes and challenges? What were the financial gaps and opportunities? How can the financial governance be improved for future programs?
Help others by sharing more (125 characters min.)
- Ruperto Agustín Chapoñan Quiroga CIP, PMI (PfMP, PgMP, PMP, RMP)®, PMO-CP®, SFC™, SS YB. Mech. Elec. Eng. | Portfolio Manager | Program Manager | Project Manager | Risk Manager | WEE | BIM | PMO | Contract Management | ISO 21500 (Industries Energy, Mining, Telecommunications and Construction)
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
The essential components of a financial governance framework could contain:• Clear policies and procedures that define the roles and responsibilities of the different actors and establish financial decision-making.• An effective internal control system to ensure that financial resources are used effectively and efficiently and financial risks are minimized.• An effective financial reporting system can help stakeholders take action to address any financial issues identified.• An effective internal audit system can help ensure that regular audits of financial processes are carried out and that action is taken to address any identified issues.
LikeLike
Celebrate
Support
Love
Insightful
Funny
1
7 Here’s what else to consider
This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?
Help others by sharing more (125 characters min.)
-
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
A financial governance framework typically includes:1. Policy Setting: Clear policies for financial management and accountability.2. Risk Management: Identifying, assessing, and mitigating financial risks.3. Internal Controls: Mechanisms to ensure accuracy and reliability in financial reporting.4. Audit Functions: Regular audits to verify financial integrity and compliance.5. Reporting Systems: Timely and accurate financial reporting for decision-making.6. Regulatory Compliance: Adherence to applicable laws and regulations.7. Stakeholder Engagement: Involving stakeholders in governance processes.
LikeLike
Celebrate
Support
Love
Insightful
Funny
Program Management
Program Management
+ Follow
Rate this article
We created this article with the help of AI. What do you think of it?
It’s great It’s not so great
Thanks for your feedback
Your feedback is private. Like or react to bring the conversation to your network.
Tell us more
Tell us why you didn’t like this article.
If you think something in this article goes against our Professional Community Policies, please let us know.
We appreciate you letting us know. Though we’re unable to respond directly, your feedback helps us improve this experience for everyone.
If you think this goes against our Professional Community Policies, please let us know.
More articles on Program Management
No more previous content
- Here's how you can prioritize your personal well-being while managing multiple teams as a program manager.
- Here's how you can maintain agility in your decision-making processes as a program manager.
- Here's how you can navigate conflicts arising from resource allocation as a program manager.
- Here's how you can equip program managers with essential conflict resolution skills in the workplace.
- Here's how you can drive successful program outcomes through leadership.
No more next content
Explore Other Skills
- Business Communications
- Business Strategy
- Executive Management
- Business Management
- Product Management
- Business Operations
- Business Development
- Business Intelligence (BI)
- Project Management
- Entrepreneurship
More relevant reading
- Financial Management How can empathy improve financial management?
- Executive Management How do you align your financial goals and initiatives with the organization's vision and mission?
- Financial Management What are the most important skills for financial management professionals to develop?
- Financial Management Here's how you can effectively update and report financial matters to your boss.
Help improve contributions
Mark contributions as unhelpful if you find them irrelevant or not valuable to the article. This feedback is private to you and won’t be shared publicly.
Contribution hidden for you
This feedback is never shared publicly, we’ll use it to show better contributions to everyone.