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Financial Context
Also referred to as "Economic Context".

One of the facets in the context of the organization.


Every organization must navigate its unique context, which will vary depending on several factors, including:
  • The type of organization (eg. services and/or products)
  • The sector in which the organization operates (eg. MUSH sector, industrial, residential, etc)
  • The geographical location in which the organization is situated
  • The jurisdiction in which the organization is located


Purpose
An understanding of the financial context is necessary for the organization to determine value and establish appropriate:



Elements of the Economic/Financial Context

       External Economic Factors
      Internal Economic Factors
  • Operating budget
  • Capital budget


Examples of "Knots" in the Financial Context
Listed below are some examples of problems in the financial context of an organization:
  • Budget deficit
  • Inaccurate estimates
  • Outdated forecasts
  • Inefficient operations
  • Low Return on Investment (ROI)


Process and Analysis of the Financial Context
An understanding of the legal context of an organization is derived from:
A PESTLE analysis can sometimes be supplemented with a SWOT Analysis. The following table provides an example of a correlation of the organization’s strengths, weaknesses, opportunities and threats.

Listed below are some of the keys steps associated with the PESTLE Analysis
  • Arrange a workshop of knowledge resources
  • Conduct PESTLE Analysis - identify each context (social, economic, etc)
  • Conduct SWOT Analysis
  • Corrrelate PESTLE to SWOT
  • Communicate the findings
  • Goals - Establish objectives for the organization
  • Policies - Establish policies that correlate with the goals.
  • Strategy - Develop strategy to satisfy the goals.



Tools for the Economic/Financial Context
Listed below are some of the tools to assist the asset management team with the management of the financail context:
Every organization is influenced by a multi-faceted context. These facets should be recognized as landmarks that will orient the organization ast it navigates a path along the asset management journey
Fig.  Every organization is influenced by a multi-faceted context. These facets should be recognized as landmarks that will orient the organization ast it navigates a path along the asset management journey.


Financial "knots" must be addressed carefully or they may get even tighter
Fig. Financial "knots" must addressed carefully or they may get even tighter.


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Fig. Organizational "knots" (problems) require patience and finesse to untangle them -- or they will get even tighter.  Do you know how to untangle the knots in your organization?


The various sectors of industry and real estate that are contemplating ISO 55001 conformity
Fig. All sectors of the economy present varied contexts in which organizations operate. The primary sector (extraction), secondary sector (production), tertiary sector (service-based) and the quaternary sector (knowledge-based).


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See also:
  • Awareness
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