Why is understanding finance important?

The development of financial literacy skills is essential for any manager wishing to be successful in their chosen field. For example, Bernie Brookes, Myer’s Chief Executive Officer, has previously acknowledged that he entered the business world with non-business related qualifications in humanities and a view that finance was “gobbledegook”. 

In an address to a Women Chiefs of Enterprises International conference in Sydney (9 September 2011) Brookes noted “Those with financial acumen have a free kick in life …”. This awareness compelled Brookes to study the basics of finance and he told conference delegates that while he “… doesn’t understand the intricacies … (he) does understand finance now” and that “… financial literacy is essential for any entrepreneur.” Brookes also advised delegates that they should not underestimate “exception” reporting as it “…a rich source of data that explains what you need to know about your business.”