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* Financial Management Introduction As the number of users grows, IT budget keeps growing. Customers grow more concerned about IT spending, and less able to map this spending to the business. Financial Management is developed to structure the management of the IT infrastructure to promote the efficient and economic use of IT resources. An effective cost control system should fulfill the following criteria: Support the development of an investment strategy that allows for the flexibility provided by modern technology. Identify priorities in the use of resources. Cover the costs of all IT resources used in the organization, including updating relevant information. Support management with day-to-day decisions so that long-term decisions can be taken with the lowest possible financial risk. Be flexible and able to respond quickly to changes in the business activities. Within an IT organization it is visible in three main processes: Budgeting is the process of predicting and controlling the spending of money within the organization and consists of a periodic negotiation cycle to set budgets (usually annual) and the day-to-day monitoring of the current budgets. IT Accounting is the set of processes that enable the IT organization to account fully for the way its money is spent (particularly the ability to identify costs by Customer, by service, by activity). It usually involves ledgers and should be overseen by someone trained in accountancy. Charging is the set of processes required to bill Customers for the services supplied to them. To achieve this requires sound IT Accounting, to a level of detail determined by the requirements of the analysis, billing and reporting processes. * On-going, Ad hoc, Regularly * Introduction A disaster is much more serious than an incident. A disaster is a business interruption. That means that all or part of the business is not “in business” following a disaster. Familiar disasters include fire, lighting, water damage, burglary,