Financial Benchmarking:

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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