The job of the corporate financial officer is to create a value for a company. For example, the finance group at American Electric Power of Columbus, Ohio has four main areas of concentration: liquidity, flexibility, compliance with laws and regulatory support. The goals of the objective are met through four main activities carried out by AEP’s Finance Department: 1) designing, implementing and monitoring financial policies, 2) planning and executing the financing program, 3) managing cash resources, and 4) interfacing with the financial community and investors.When you are trying to value your company, you first have to look at how important your company is to the economy, you have to keep track of the financial policies of the company and make sure that they are appropriately followed. If Enron did this, they wouldn’t be in so much trouble. You also have to manage your cash resources of your company effectively so that you don’t over spend and drive your company to bankruptcy. You need to make good investments with your companies money and if the need arises, it is your job to decide upon whether or nor a merger would be beneficial.
Corporate finance is far more difficult to manage than your personal finances because corporate finance effects a lot more people and is the deciding factor in whether or not a company succeeds. When companies go into debt, it is the corporate finance officer’s job to get things back on track. Proper corporate finance requires that you keep on top of what is happening with the economy at all times because it is economical trends that will decide the future of your company. A good finance officer will see down trends coming and prepare the company beforehand.