ANALYSE THE INTEGRATION OF FINANCIAL MANAGEMENT PRACTICES WITHIN PROJECT MANAGEMENT FRAMEWORKS AND ITS IMPACT ON PROJECT SUCCESS

Abstract

A very important aspect is that of financial management practices being integrated within the project management framework, which has a major effect on defining success in projects. Financial planning, budgeting, cost control and risk management are the main forces in determining whether projects are can be achieved within scope, budget, and schedule. Still, the accurate financial management systems link the strategies formulated at the top through the execution of projects to make sure that budgets are met, resources are allocated appropriately and effectively, without running the risk of project failure or going off-budget all the time. Therefore, this research critically investigates what is the role of financial management in project success, specifically how financial principles are incorporated into various project management frameworks such as PMBOK, PRINCE2 and Agile methodologies.

The study focuses on the following research questions: 1) Investigating the relationship between financial management and project success. (2) What are the best practices to include finance principles in project management frameworks? By examining existing literature, industry papers, and practical examples in detail to understand their approach and solution to the problems they have faced, this research aims to highlight the best practices for budgeting, accounting, and reporting in project management. Projects with robust financial governance frameworks, live budget tracking, and flexible financial strategies are much more likely to meet their targets, according to the findings. Case studies of results from past events provide analysis of both successes in financial management for events such as London 2012, and failures of financing or financial mismanagement such as that of the Sydney Opera House. It also looks at how technology is changing the landscape of financial management, with a focus on the adoption of financial software, AI-driven analytics, and blockchain technology.