In the current unstable business environment, CFOs are required to implement better risk management models that will support business agility. Even though ownership of risk management might be spread across different departments of an organization, all of the departments are required to work hand-in-hand to enable growth.
Using internal and external data, CFOs are able to have a wider view of risks, making them an integral part of any organization. According to PWC’s 2022 Global Risk Survey, companies are more likely to experience revenue growth when risk management is implemented as a “team sport” across all departments.
In 2022, one of the challenging tasks for CFOs is the volatile regulatory, risk and tax policy landscape. Additionally, the COVID-19 pandemic has also made it hard to manage risks with risk events occurring at an accelerated rate. Together with risk and tax leaders, CFOs should employ predictive analysis to try and mitigate any detrimental risks.
CFOs should also focus on accelerating digital transformation and invest in technologies such as cloud and analytics to enhance growth. CFOs also need to consider the potential of using cryptocurrencies as the digital currencies continue to gain more traction.
Another focus-area for CFOs is the issues of environment, society and governance (ESG). Much of the effort is directed towards consistent reporting frameworks and metrics and instilling workplace trust by implementing a good ESG program.
CFOs have also taken on more accountability since they are the ones expected to build trust with employees and stakeholders. According to Gary McGaghey, CFO at Williams Lea Tag, he suggests that good CFOs are the ones who listen to everyone around them, especially their team. CFOs need to invest more in data privacy and cyber security to enable more assurance and transparency in the organization.
Since the advent of COVID-19 pandemic, a new era of work began in order to adjust to the current situation. CFOs need to find new hybrid models that are unique from other companies and those that take into account the employees’ needs.
CFOs work portfolios have diversified with more responsibility being assigned to them. CFOs are required to be at the top of their game to enable sustainable growth. Gary McGaghey advises every CFO to always step back and look at the big picture before making any important decisions.
Due to his exemplary experience in business and financial sheet restructuring, Gary McGaghey has been able to deliver increased shareholder value to numerous companies as a CFO. Gary is also a Chartered Management Accountant and a Chartered Accountant. See More information: https://www.garymcgaghey.co.uk/