Financial Management – Assignment Example

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Table of ContentIntroductionOverviewProposed budget cut areasRisk area and the subsequent ways to mitigate riskRecommendationsConclusion ReferencesIntroductionGreater Manchester Fire and Rescue Service which is a fire and rescue operator based in UK is looking towards reducing the expenses by 5% on certain areas like staff, equipment and premises. Greater Manchester Fire and Rescue Service needs to weigh the benefit and cost involved due to their steps and needs to identify the risk associated with the same. The paper thereby looks into different areas where Greater Manchester Fire and Rescue Service can reduce the expenses and the risk that could arise from them.

It also considers the ways that Greater Manchester Fire and Rescue Service can take to reduce the risk in the future. OverviewFinancial planning holds an important position for every organization and sound financial process helps to ensure that the goals of the organization are easily achievable. (Wang, 2010) Having a sound policy helps to ensure that the strategies don’t backfire and helps to improve the overall planning. Sound financial planning helps to achieve the following (Brigha & Houston, 2009)Proper financial planning ensures that the long term investments are easily made as it ensures sufficient funds throughout the business life cycle. Proper planning helps to ensures that the assets which are no longer required are disposed of at the correct prices.

It will facilitate in the disposal of fire fighter engines, places and equipment which are not required. Proper planning ensures that the risk associated with the staff reduces as the nature of job carried out in fire and rescue services is riskyWith economies reviving from the global downturn Greater Manchester Fire and Rescue Service is looking towards adhering to the government requirements of reducing the expenses by 5%.

Greater Manchester Fire and Rescue Service has identified certain areas which they look to work on and ensure that with efficient planning and efficiency are able to reduce the expenses by 5%. Proposed budget cut areasGreater Manchester Fire and Rescue Service have proposed certain areas where they are looking towards reducing the expenses which will help them ensure that their operations don’t get affected. Some of the areas identified by Greater Manchester Fire and Rescue Service are as followsStaff: Greater Manchester Fire and Rescue Service employ over 1,960 employees for a population of 2.5 million.

Their employees are distributed over 41 destinations which they operate. The financial statement highlights that Greater Manchester Fire and Rescue Service has 1911 full time fire fighters and 39 part-time (Annual report, 2010, p. 9). Greater Manchester Fire and Rescue Service thereby looks towards reducing the employees by closing down certain areas where they operate as the same destination can be dealt from other fire stations in the nearby areas (Performance Plan, 2010) Greater Manchester Fire and Rescue Service spends around 68% of their budget on employees.

As the expense on employees forms a large percentage of the total budget so a proposed cut of 5% will greatly benefit Greater Manchester Fire and Rescue Service as the money can be used elsewhere.

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