Activities of Finance Professional Flashcards
(43 cards)
What the are 4 activities of a finance function according to the White paper (Farrar)
Assembling Information
Analysing Information
Advising to Influence
Applying for Impact
Define Data and Define Information
Data: Raw unprocessed facts and figures
Information: Data that has been processed in a way to make in meaningful for planning or decision making
What types of data are identified in the report ‘From insight to impact- unlocking opportunities..’
Financial Data
Enterprise Data
Big Data
What is financial Data
Standard Metrics which are well tracked and understood by organisation
What is enterprise data
Financial data + Broad operational and transactional data for analysis and forecasting
What is big data
Enterprise data + new types of internal and external data which can be unstructured, large in volume
Could yield insights into business performance, risks and opportunities
What is the general rule of costs associated with assembling data
Costs should not exceed the value of the information created
Value can either be intrinsic and sold or more subjective to the company in terms of the information provided
What qualities does information require to be useful
A: accurate- reliable information with no mistakes
C: complete - include everything if relevant and be consistent
C: cost effective
U: understandable
R: relevant
A: accessible- choice of medium should be appropriate
T: timely
E: easy to use
What are ways of collecting data
Informal gathering: general everyday information
Formal gathering: when organisation needs specific data for specific purpose
Define environmental Scanning and provide examples
- External data source
- Process of gathering external information from wide range of sources
-eg. tax specialists, legal expert, research and development, marketing managers, government, bureaus, consultancies, data sharing portals, newspaper etc
What are requirements of internal data sources
- System for collecting/measuring data that sets out how, when, by who, methods
- Informal communication of information between staff and managers
- Formal communication
What are some sources for internal data
- Accounting Records (ledgers, books and bank transactions)
- Human resources (payroll records)
- Machine Logs
- Time sheets
- Staff conversations
Define Data Cleansing
Process of identifying incorrect data and modifying or removing it
eg. duplicated, errors, corrupt, out of data, data with no purpose, data held in contraction of gdpr
What are the methods of cleansing data
Cross-checking raw data with validated
Manual checks
Automated batch processing
Data wrangling (converting raw data from one form to another to use in different system
How is a data-centric business created
- understand what data is important
- assess existing data initiatives
- identify quick wins and proof of concept projects
- conduct a formal full-scale data project
- create data culture
What is a data connection tool
Software to connect vast data sources
- cloud-based and lots of processing powers
- eg. tableau or Microsoft power bI
What are the four key functions of data connection tools
- Data integration: can compile data from many sources
- Pre-built starter kits: accelerate development time
- User friendly
- Mobile reporting
Define data analysis
Process of evaluating data by comparison benchmarks to form a conclusion
- reporting the facts
Define data insights
Finding the indicators of the drivers of value for the organisation
- reporting what might happen in the future
What are the four levels of data analysis
- Reporting- what happened
- Analysis - why did it happen
- Monitoring - whats happening now
- Prediction - what might happen
Complexity and value to the business increase at each level
Define stakeholders
People/groups who have an interest in the organisation
What is the difference between primary and secondary stakeholders and list examples
Primary: contractual relationships with the organisation (shareholders, managers workers, trade unions, customers, suppliers and business partners, lenders)
Secondary: other relationships which impact organisation (government, local authority and public, natural environment)
Explain shareholders as stakeholder in an organisation
- Money invested is at stake
- Expect a return on investment and growing profits through dividends
- growth in capital value of their share of the business
Explain directors/managers/employees and trade unions as stakeholders
- Livlihoods, career at stake
- Expect fair and growing remuneration
- Expect career progression and safe working environments
