CFO Challenges

- Industry Challenges
- CFO Challenges
- Corporate Governance
- Risk and Compliance

In the current business environment that demands doing more with less, financial executives are especially challenged from two directions:
Streamlining their own organizations; making them more efficient, and often more strategic, without sacrificing the critical business functions required of them.

In regards to corporate performance, the main objective of the finance function is to improve the ability of decision-makers to understand and manage the business. Finance accomplishes this by delivering better information to company decision-makers, and helping decision-makers analyze the information quicker than the competition. There is no doubt that timely, accurate information in the hands of decision-makers creates a competitive advantage because it allows decision-makers to better understand the business drivers. As a result, organizations can outperform their competitors and create sustainable shareholder/stakeholder value. The mid-market CFO’s challenge is how to become a strategic weapon for the CEO.

The role of CFO is changing the most in following areas:

  • Greater role in technology and information systems initiatives
  • More strategic planning and decision-making
  • Increased interaction with other departments

One of the most daunting challenges facing CFOs and their staffs today is how to ensure that the financial information they supply to stakeholders, both externally and internally, is consistent and correct. The checklist for compliance seems to grow whenever you turn around. Sarbanes-Oxley, US Patriots Act, HIPAA. MiFID, Basel II, PCI data security standards, etc. – were these even parts of our vocabulary several years ago?

Healthy businesses continually test their effectiveness, even in good economic climates. They continually try to re-invent the ways they conduct business internally and how they relate to their clients. Some CFOs are more proactive than others. That is, they don’t wait for a crisis to envelop them before they re-assess their business structures. They embrace change, not only as a means of survival, but as a critical aspect of prospering.