The modern-day role of
1. Adaptability
It’s essentially a prerequisite for a CFO now to be adaptable, open to change and always willing to take on new responsibility, often in areas they have not been trained in. CFOs are no longer only the financial book-keeper, but also the company change agent and a key strategic partner with a say in increasing areas of the business as a whole. This requires an openness to diversification of their role, to step out of their comfort zone to handle new tasks, and to be prepared to continually learn, often from scratch, requiring significant time and dedication.
2. Uncertainty
No CFO foresaw the 2008 financial crisis and indeed, the pervasive damage it would inflict on so many companies. Similarly, for a business with economic interests in Syria, Libya and Egypt, it was impossible to know that the Arab Spring was around the corner in 2010. Such economic and political events are nearly always impossible to foresee, and can cripple or even bring down a business entirely. A company’s best approach is to be as ready as possible for unexpected events to transpire and to protect themselves by not being dependent on any one specific business division. This also includes uncertainty to do with their own industry: regulation, competition, price and availability of raw materials, to name a few components.
3. Keeping up
The finance industry has recently experienced what many economists view as a long-term period of change. With such change, CFOs must be ready to implement correctly and efficiently new compliance procedures and protocols. Additionally, with increasing choice of finance service options, including services provided by the alternative finance sector in particular, companies are no longer so dependent on banks. This adds an extra layer of responsibility to the CFO role, as they must ensure costs are reduced by considering more options, and continually review such choices. To do this effectively, a CFO must stay well informed with industry updates and changes.
4. Relationship-building
CFOs are now increasingly involved in key decisions across all major areas of a business, requiring the direct collaboration with all main company figures (CEO, COO, Marketing,
5. Structural streamlining
CFOs have to act quicker in light of various factors such as increased competition, regulation and changes to market conditions, and think differently in response to continued budget austerity. They have to analyse all business departments and how to best structure the organisation to be efficient, consistent and cost-effective. This includes the consideration of business process outsourcing and successfully identifying strategies which allow their company to differentiate themselves from their competitors; something that companies have been hesitant to commit to. This is mainly because they are reluctant to commit to risky investment while they recover from the effects of the economic downturn.