Financial Policy Review Process Outline
This document provides a comprehensive guide to the financial policy review process of a business, carefully detailing all the relevant steps, procedures, and operational norms. It serves as a holistic reference for understanding and implementing effective financial policy reviews within a business organization.
Introduction
The financial policy review process is crucial for sustainable business operation and growth. Regular review encompasses assessing, refining, and making necessary adjustments to current financial policies, ensuring they meet the evolving needs of the business.
Financial Policy Review Process
1. Initial Assessment
This is the initial phase where the current fiscal policies are identified and listed. Comprehensive details of these policies, including their designs and purposes, are also presented. The table below shows an example:
Policy Number | Policy Name | Policy Description | Purpose of Policy |
|---|
01 | Capital management policy | Policy that guides the utilization of the business's capital resources | To manage and allocate capital efficiently |
2. Policy Analysis & Evaluation
Here, the existing financial rules are critically evaluated for their effectiveness. Some questions to ask: Are they in line with the company's goals and mission? Do they comply with legal regulations? Are they efficiently executed?
3. Identification of Changes Needed
After a careful analysis, necessary changes are identified. This could mean rewriting some policies, eliminating redundant ones, or creating new rules to cater to newly identified needs.
4. Revision of Policies
This section involves the actual drafting of policies. Existing rules are rewritten and necessary alterations are incorporated. New policies are also crafted at this stage.
5. Approval & Implementation
Once the drafts are prepared, they are forwarded to the relevant stakeholders for approval. After approval, the updated policies are implemented and communicated to all parties involved.
6. Monitor & Adjustments
The effectiveness of the updated policies is tracked and necessary adjustments are made on an ongoing basis to ensure their relevance and efficacy.
Conclusion
Financial policy review is a continuous cycle that ensures the company's financial health and stability. Through regular review, the business can keep abreast of legal changes, industry trends, and internal shifts in strategy or structure that may require updated financial guidelines.
