The Office of the CFO Concept: Greater Expectations and Evolving Responsibilities

Published by Chris Egan, BUCS Board Chairman

The pace of the world is increasing every day, and in the business world, it is critical to stay agile and evolve to keep up with the competition. This is especially true for CFOs in our organizations. In recent years, the traditional role of managing finances, accounting, and budgeting has expanded to include a broader strategic focus, technology innovation, and risk management. Companies are now expecting more from their finance leaders, and CFOs are meeting these new demands.

Value Creation

One of the most significant changes in the role of the CFO is a greater emphasis on strategy. Companies are looking for their finance leaders to provide a more proactive approach to financial planning and decision-making. CFOs are expected to provide insights and recommendations on key business initiatives, such as mergers and acquisitions, growth strategies, and digital transformation.

Technology and Data Management

To support the increasing responsibilities and speed of information, companies have turned to the CFO. This has increased the role of technology in finance. With the rise of cloud computing, automation, and artificial intelligence, CFOs are now expected to have a deep understanding of technology and how it can be leveraged to drive business value. This includes evaluating new technologies, developing technology-driven solutions, and managing cybersecurity risks.

Value Protection

Financial reporting, compliance, and treasury have historically been the foundation of the CFO’s role in protecting the value of the organization. But risk management is another area where expectations for CFOs have increased. Companies are looking for their finance leaders to provide a comprehensive view of financial risk and to develop strategies for managing it effectively. This includes not only traditional financial risks, but also non-financial risks such as cyber threats, data privacy, and reputation.

Expanded Role

The new concept of the Office of the CFO is demanding, but it also presents exciting opportunities for CFOs to drive value and impact in their organizations. By embracing technology, developing a strategic mindset, and taking a proactive approach to risk management, CFOs can become true business partners and help their organizations succeed in the years ahead. Companies are expecting more from their finance leaders, and CFOs are stepping up to meet these new demands. The future of the Office of the CFO is bright, and we can expect to see even more innovations and progress in the years to come.

Source: BDO