Different types of financial managers
Although BLS classifies financial managers as a stand-alone role, there are a few occupations that it considers as “types” of financial managers. Roles vary by the responsibilities, topics, tax laws or regulations specific to the industry or organization where a financial manager works. This can include government or healthcare positions. Let’s explore each and their unique responsibilities.
Please note that University of Phoenix educates graduates to become financial managers. While the information below describes types of that role, the University cannot guarantee that the specific skills required for these roles are taught in its programs. This information is designed to help you understand the scope of the industry, so you are better informed about your career decisions.
Treasurers oversee a company’s assets, including cash, investments and other financial resources. Their role is to optimize the use of these assets, strategically allocating funds to meet an organization’s objectives and maximize profitability.
Other crucial responsibilities include:
- Creating and monitoring budgets, completing financial reports, and ensuring that expenditures are aligned with a company’s financial goals
- Analyzing financial data, identifying areas where costs can be controlled or reduced, and providing recommendations to optimize spending
- Ensuring the company has sufficient cash flow to cover day-to-day operations, investments and financial obligations
- Assessing and mitigating financial risks such as market fluctuations, interest rate changes, currency risks and credit risks
- Negotiating banking relationships, managing debt and credit facilities, and communicating financial performance to investors and management
Their expertise plays a pivotal role in driving the company toward success.
Credit managers work to establish credit policies and guidelines. They assess customers’ creditworthiness, set credit limits and determine appropriate payment terms.
They also develop strategies for managing a company’s debt. They analyze risk factors, monitor credit exposures and recommend solutions to potential problems.
Additionally, credit managers:
- Monitor customer payment patterns, assess the risk of late or non-payments and implement strategies to minimize potential losses
- Analyze cash-flow patterns, identify opportunities for efficiency and implement measures to improve collections and reduce bad debt
- Establish and enforce payment policies, monitor payment trends and follow up on delinquent accounts
- Stay informed about evolving credit practices, legal requirements and compliance standards
- Collaborate with sales and customer service teams to ensure a smooth and equitable credit application process, address customer inquiries and resolve payment disputes
Since credit managers are responsible for payment compliance and credit risk assessment, they play a critical role in maintaining a company’s financial stability.
Risk and insurance managers
First and foremost, risk managers assess and analyze potential risks the company may face. They conduct thorough risk assessments, examining areas such as operations, finance, legal compliance, technology and more.
Once risks are identified, insurance managers step in to provide protection. They work closely with insurance brokers and underwriters to evaluate the company’s insurance needs. Then, they recommend and secure appropriate insurance policies that offer coverage for potential losses or liabilities.
Risk and insurance managers also play a pivotal role in managing insurance claims. They liaise between the company and insurance providers, ensuring claims are filed accurately and efficiently. They follow up on claims, facilitate communication and work toward a fair resolution.
In addition to these responsibilities they:
- Strive to create a culture of risk awareness: They educate finance managers and other employees about potential risks, and they develop training programs and promote best practices to minimize risks.
- Keep up with industry trends and regulatory requirements: They stay informed about changes in laws, regulations and insurance policies.
- Develop business continuity plans: This ensures a company has strategies to mitigate risks and maintain operations in the face of disruptions.
- Coordinate emergency response efforts: They work closely with other departments to ensure a company can effectively navigate challenging situations.
Although risk isn’t the ultimate decider of an organization’s financial success, it is key in maintaining security — something that risk managers ultimately strive for.
Cash managers work diligently to monitor, control and forecast a company’s cash flow. By understanding a company’s cash position, they can make informed decisions and strategies to ensure a healthy and sustainable cash flow.
They also work closely with financial institutions to establish and maintain banking services that support the company’s cash management objectives. They negotiate favorable terms for banking services, such as cash concentration, electronic fund transfers and short-term investment options.
Other duties include:
- Analyzing cash positions, forecasting cash needs and making informed decisions about short-term investments or borrowing options
- Developing procedures for cash handling, approvals and disbursements to prevent fraud, misappropriation or errors
- Collaborating with other departments to ensure smooth coordination of cash management activities
They ensure that a company can make timely and informed decisions about its financial resources.
Finance at University of Phoenix
If a career as a financial manager interests you, a Bachelor of Science in Business with a Financial Planning Certificate at University of Phoenix can help you learn how to analyze financial information to address business needs. However, if you’re interested in one of the different types of financial managers, such as being a treasurer or cash manager, you will have to look up the specific education and requirements for those roles as the necessary focus areas may not be taught in the UOPX degree program.
In the business and financial planning program, you’ll learn top skills such as management, operations, financial planning and financial analysis. More specifically, you’ll learn how to examine areas of financial planning that can be used to improve decision-making and analyze financial information to improve operational performance.
Perhaps you’d prefer to pursue a career in accounting. If so, you may want to consider the University’s Bachelor of Science in Accounting. In this program, you’ll learn to develop specialized skills in managerial accounting, estate taxation, advanced topics in accounting research and more. If you’re interested in business in general, or other sector of business, explore more about the business degrees offered at University of Phoenix!