Financial management consulting is a field that most people know very little about unless they’ve had personal experience with it. However, consultants often play a crucial, if not very visible, role in the success of other businesses. In a nutshell, financial management consultants work with businesses in the financial services industry, and their mission is to help clients save money and grow their profits by predicting problems and coming up with solutions.
Risk Management Consulting
Risk management begins with identifying threats to a business’s financial health. Risks could stem from security problems, legal issues, financial instability, and even natural disasters like fire or flooding. Once risks are identified, they need to be evaluated and prioritized in terms of how great a threat they pose and how likely they are to occur. The next step involves putting in place measures to control or mitigate those risks that are deemed most significant. For example, David Johnson Cane Bay Partners founder uses data-driven risk management models to help clients avoid losses.
A financial management consulting firm also works with company managers to help identify areas of the business that can be made more efficient. They may offer data analytics and modeling tools to help clients see exactly how current strategies are working and to find points in business processes where waste occurs. Debt collection clients, for example, can benefit from predictive dial utilization to automate outbound calls and screen for bad numbers. Consultants may also recommend debt sale strategies that can protect clients from losses.
Portfolio Management Consulting
Another aspect of financial management consulting involves portfolio management. Consultants work with clients to assess the areas of accounting, investor relations, cash management, and tax management. By identifying potential weaknesses in these areas, consultants can help their clients save money by improving the quality and accuracy. In addition, they can provide daily and monthly reporting to reveal trends and help clients get the most out of their investments.
People who go into financial management counseling typically have a background in financial services and business management. Many find it a rewarding line of work because they are able to contribute to their clients’ success.