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Risk management a critical aspect of CFO responsibilities

Risk management a critical aspect of CFO responsibilities

Managing risk is an important role for any executive, but this aspect of the job description can be even more crucial for CFOs.

According to CFO.com, financial risk management is, of course, a major responsibility for financial

Managing risk is an important role for any executive, but this aspect of the job description can be even more crucial for CFOs.

According to CFO.com, financial risk management is, of course, a major responsibility for financial bosses, but the task of managing risks goes far beyond that scope. In fact, every time a decision is made, CFOs need to evaluate the potential risks and figure out ways to cope with them.

Additionally, while quarterly reviews serve as important tools for understanding one's risks, CFOs need to place an emphasis on risk management much more often than once per quarter, as new challenges can crop up on a daily basis, particularly in the fluctuating financial markets.

CFOs in particular have a complete understanding of the company's bottom line, meaning they need to be able to effectively assess where chances should be taken and, conversely, where risks should be minimized, according to the news source.

Likewise, according to The Wall Street Journal's CFO Journal, financial executives need to be prepared for the "unthinkable," especially in light of the recent economic crisis.