International Financial Manager
The financial manager of IKEA store in Abu Dhabi is James McGowan
His role as a financial manager is to envisage the close supervision of the work performed by the finance staff including day to day contact with the banks to check in level of payments made per day and to transact the payment of materials and external credits through the bank. He is the one responsible for the production of all management reports including monthly financial management report. He budgets for IKEA store annually reforecast periodically. In the process of all these, he operates financial tasks like setting and varying all the internal credits limits and funding employees.
He assures cash creditors by paying them on time and prepares payment for the distributors
He also liaises with professional advisors like auditors and oversees the works performed by infrastructure developers and ensures timely reporting of results and payment. The financial manager is focused and has more that ten years of experience since he has served as a manager and financial assistant in different firms (Kendrick & Vershina, 2005).
To manage his financial risks, he has involved the future risks and has made a sport in the banking system so that the company can have a lock-in set exchange rate in the current financial period. He also uses foreign exchange option markets which are managed by global banks. This enables Ikea to purchase options to buy and sell the foreign money they get from the sell of their furniture and other products are sold for them by the institution in future. In the meanwhile he waits so that he would exercise the selling option depending upon the changes of market values against the U.S dollar (Bradstreet Corporation, 2003).
Finally, his last approach to managing and mitigating financial risk is to manage the financial risk is through managing their functional currency of the businesses they have overseas. This takes the form of balance sheet management or income management in that instead of IKEA borrowing locally from Abu Dhabi, they could borrow overseas inform of U.S dollars so that there will be no impact on their balance sheet at the time of payment when other currencies move up or down against the U.S dollar (Bradstreet Corporation, 2003).