Every
day the financial analyst are involve in the comparison of the financial figure
and with the help of these financial and statistical figures they make the comparison
and abstract the results and judge their performance.
· According to the words
etymology the roots of the word benchmarking is taken form the Cobblers.
Because they keep the actual size of the customer foot size to make the shoes
for their customers.
· That’s the reason we can
say easily that the financial benchmarking are the targeted figures or
standards that always put against the actual achieved figures, amounts or
statistical figures.
· Financial Benchmarking is
important for evaluation of performance of any investment. It is important for comparison
with the actual figures. Setting the benchmark is important and helpful for an
investor to communicate with his portfolio manager. We can evaluate the risk
situations, market and industry future through it.
That’s the reason every financial
manager and financial analyst recognize and knows the importance of the
financial benchmarking because without this benchmarking they cannot evaluate
their performance and cannot make the improvement in their business operations
processes.
That’s the reason we can easily evaluate all the topic with the simple meaning for "benchmarking which influence the financial managers
towards making improvement and change in their operational abilities to achieve
the stated goals and targets."
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