Financial management is the process of planning, organizing, controlling, and monitoring a company's financial resources in order to achieve its business objectives and maximize its value. It involves making decisions about how to raise and allocate capital, manage risk, and evaluate the performance of the company's investments.Financial management is an essential function of a business, as it helps the company to ensure that it has the necessary financial resources to achieve its goals and to make informed decisions about how to use those resources. It also helps the company to manage its financial risks and to maximize its return on investment.