Managing Resources

Question 1

What does the “Managing Resources” competency focus on?

Answer 1

Managing the effective use, allocation, and costing of resources, excluding human resources.

Question 2

What are some key aspects of resource management

Answer 2

Types of resources required
Managing financial resources
Accounting techniques
Budgeting and forecasting
Procurement and acquisition
Monitoring resource use
Costing of resources
Relationship between cost and value

Question 3

What should be considered in managing resources?

Answer 3

Setting financial objectives
Conducting budget exercises
Monitoring and managing financial resources
Working with a finance department
Setting personal objectives
Preparing reports and recommendations on resource use and allocation

Question 4

How should financial objectives be set according to resource management principles?

Answer 4

Financial objectives should meet the company’s corporate financial hurdle rates (e.g., ROCE, ROI, PAYBACK, IRR) and filter down into the project to ensure it represents the best use of the company’s capital or cash.

Question 5

Why is understanding financial hurdles important in managing resources?

Answer 5

Understanding financial hurdles ensures that the project represents the best use of the company’s capital or cash. If it doesn’t, the capital should be allocated elsewhere, and the individual accountable for the project must be aware of this.