Do Financial Managers Travel a Lot?
The concept of a financial manager spending a significant amount of time traveling may come as a surprise to many. In fact, it is quite common, especially for those working in the banking industry, where the role often requires extensive travel to ensure the proper management and oversight of clients and their assets.
The Responsibilities of a Bank Manager
A bank manager’s primary role is the stewardship of a bank’s assets. This involves not only managing the financial health of the bank but also ensuring that the investments and loans approved by the manager and their team are utilized appropriately and on schedule. The manager must foster and develop clients, maintaining strong and trustworthy relationships to ensure financial stability and growth.
The Historic Example of Donald Trump
A recurring example often cited to illustrate the extensive travel and responsibility of a bank manager is the case of Donald Trump. Although Trump is renowned for his vast wealth, a significant portion of his fortunes has come from the financial support of banks. A shrewd bank manager would be wise to keep a close eye on the application of these funds, especially with large-scale developments like furnishing casinos and resorts.
In one such instance, it was reported that funds intended for furnishing the Taj Casinos in Atlantic City went missing. Upon investigation, it was discovered that the bulk of the money had been used to settle arrears for a yacht, rather than being used for the intended purpose. The resulting collapse of the hotel led to substantial financial losses for the bank, with the board demanding an explanation from the manager who approved the loan.
The manager would need to prove that they conducted thorough due diligence, involving teams to verify the application of the funds. This might mean traveling to the property, inspecting the premises, and personally verifying the invoices and the placement of the furniture. Such travels can be critical to ensuring the integrity of financial transactions and prevent potential legal issues.
The Importance of Business Trips
Not all business trips are the same. Some may be local, serving to maintain client relations and ensure the ongoing success of these partnerships. Others may be further afield, necessary for extensive due diligence, property inspections, and asset verification. The scope of these trips can vary depending on the specific needs of the bank and the scale of the transactions involved.
The need for travel highlights the importance of both the financial manager’s role and the potential consequences of neglecting these responsibilities. A financial manager who fails to travel as necessary risks not only professional repercussions but also legal issues. Legal representation might be required to defend against accusations of fraud or misappropriation.
Given these factors, it is clear that financial managers, particularly those in the banking sector, must be prepared for a significant amount of travel to ensure the financial health and integrity of their institutions.
Conclusion
The role of a financial manager is multifaceted and requires a deep understanding of both the local and global financial landscape. The extensive travel involved is a crucial aspect of this role, allowing for the oversight of investments and loans, and the maintenance of strong client relationships. Whether local or international, these trips are essential for ensuring the proper and ethical management of financial assets.