When an enormous amount of money is at stake, investors and lenders want to make sure that the company they are involved in is functioning as effectively as possible. Irresponsible management can ruin investors and the greatest management blunders can even jeopardize the entire economy. Business assurance managers are responsible for proving that a given company is making smart management decisions.
Assurance refers to the act of verbally trying to encourage others to have confidence in a particular action or event. According to DougMcClure.net, this act of assurance is related to auditing, financial reports, risk management, disaster recovery and security assessments. Businesses often create portfolios that are intended to assure federal agencies, investors, lenders, customers and vendors that their business is operating properly. Proper operation varies from industry to industry. Departments related to customer service, technology optimization, process management, information management, supply chain and infrastructure all have to concern themselves with business assurance management. However, there are some larger companies that have a department devoted solely to business assurance.
Business assurance management departments are responsible for forging business policies and standard operating procedures in a way that is effective, efficient and trustworthy. According to RBS Coutts Bank Ltd, these departments communicate with various other departments in order to gather information not only to better set business policy, but to also create portfolios in order to assure various outside parties. This department often works closely with the human resources department in order to train employees so that they will be able to follow procedures developed by the business assurance management team.
Many members of the business assurance management department have educational backgrounds in finance and business management. Previous experience with risk management, finance and leadership are often preferred for members of the assurance management department. Members of the business assurance department must have analytical, organizational, collaborative and communication skills. They must also be up-to-date with the latest business regulations.
Based on data collected by the Bureau of Labor Statistics, between 2008 and 2018, the need for financial managers is expected to grow by 8 percent. While increasing regulations and the globalization of businesses will increase the need for financial managers, the need for financial managers will be reduced by corporate downsizing, mergers and acquisitions. During a financial crisis, the need for assurance will likely increase as many financial institutions become reluctant to loan money and as governmental agencies increase oversight over companies.
In 2008, the median earnings for financial managers were $99,330, according to the Bureau of Labor Statistics. The highest paid financial managers worked for brokerage firms, while the lowest paid financial managers worked for depository credit intermediators. Many financial managers earn much more than their yearly salary through investments and yearly bonuses.
2016 Salary Information for Financial Managers
Financial managers earned a median annual salary of $121,750 in 2016, according to the U.S. Bureau of Labor Statistics. On the low end, financial managers earned a 25th percentile salary of $87,530, meaning 75 percent earned more than this amount. The 75th percentile salary is $168,790, meaning 25 percent earn more. In 2016, 580,400 people were employed in the U.S. as financial managers.