Certified Facility Manager (CFM) Practice Exam 2025 - Free Practice Questions and Facility Management Study Guide

Finance and business competency is crucial in facility management primarily because it assists in budgeting and financial decision-making. This skill set enables facility managers to create accurate budgets, allocate resources effectively, and understand the financial implications of their decisions. By mastering these competencies, facility managers can ensure that operational costs are kept in check while still maintaining a high-quality environment and service level.

Effective budgeting allows for the strategic planning of expenditures related to facility maintenance, upgrades, and day-to-day operations. Additionally, sound financial decision-making is critical in justifying expenses to higher management or stakeholders, managing cash flow, and preparing for unforeseen expenses. Overall, these competencies provide a holistic view of the financial health of the facility, which is essential for long-term sustainability and operational success.