Strategic financial management in portfolio and project management is a process by which financial resources are allocated to projects oa. based on their strategic value. The goal is to optimize the organization’s financial resources and achieve its strategic objectives. This process includes identifying appropriate projects, determining their strategic value, assessing their financial viability and allocating financial resources based on this assessment. The process also includes monitoring the performance of projects to ensure that they are on track and that financial resources are used effectively.
Through a new financial grid available in both portfolios and projects, the three levels are linked. Easily different types of money can be compared e.g. ‘Budget versus Forecast’ or ‘Planned versus Spent’. Scenario planning can be used to analyze the impact of various situations before they are effected. This provides easy insight and the opportunity for financial steering at all levels.
