Financial Management

Financial Management Practice determines how the finances are managed across the portfolio. This practice does not concern finances of individual projects and programmes, but the portfolio as a whole.

This practice is part of the Portfolio Delivery Cycle.


An organization’s finances remain the topmost indicator of how it performs. This is true, even for non-profit entities, because their continuity is dictated by how well they manage their funds. Therefore, it is very important to align the portfolio management with the financial management processes of the organization.


The following activities form the portfolio financial management practice:

Keys to Success

Net present value is a financial indicator that expresses the value of future costs and benefits in today’s money. This is due to the fact that value of money depreciates with time. Many organizations use Net Present Value when calculating financial benefits.

Staged release of funding should be aligned with milestones and gates of the project. This will ensure funds are best utilized.

Written by Inham Hassen

This wiki is developed and managed by an accredited trainer, independent of AXELOS. While aligned with their guidelines, it’s not an official resource.