Financial policies clarify the roles, authority, and responsibilities for essential financial management activities and decisions. Financial policies clarify the roles, authority, and responsibilities for essential financial management activities and decisions.

Financial policies refers to policies related to the regulation, supervision, and oversight of the financial and payment systems, including markets and institutions, with the view to promoting financial stability, market efficiency, and client-asset and consumer protection. Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.