In the last four months, the world has become a far more volatile place than before. Economies have is slow and industries across sectors have slumped.
Governments around the globe are trying ways to manoeuvre the situation and secure the sustainability through these extraordinary circumstances. Companionships, too, are in a similar place and are unwearyingly waiting for him a revival.
While we are in the unlock phase, there is no timeline to when this financial pandemonium will be terminated. Firms are persistently looking for robust retrieval strategies to flatten the negative financial arc. Revival and business continuity are vital factors for all business owners.
Financial rulers are resolving immediate concerns and aligning for future opportunities to safeguard the overall financial status and performance of businesses.
In the current scenario, a modern chief financial officer( CFO) has a pivotal role to play. His fiscal acumen and pondering understanding of the global economic situation delivers security and resilience within the organisation. A modern CFO is poised to analyse the situation, advocate changes in business programmes, and ensure coalesced implementation with the help of his peers.
Here are some areas that a modern CFO must conducted an investigation into for optimising the rebirth process.
Leading the way
Today, a modern CFO is more versatile than ever. He is the financial tactical appendage of the CEO and an effective business partner on board that foretells the big picture to steer fund apportioning and corporate leadership. He precedes with intellectual and feelings agility to instill confidence in the internal and external stakeholders.
A CFO must be able to decipher exhaustive intelligence immediately with precision. As a captain and spouse, CFO’s inherent knowledge influence the overall decision-making forte of the leadership team. With programs moving from a proliferation state to existence state, a CFO is the most liable friend of the company.
He is a critical part of the team that drives new innovations and survival idea for overall business success and subsequent growth.
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Reality check
A CFO is the epicentre of a company’s business and fiscal data; he is abreast of the company’s financial works, as well as the performances of various concoctions and organizations across the board.
On ground reality, this influences his decision which requires him to take a closer look at the business, flora recital, sales offices, or accumulates. He should be up to date with the current ecosystem to ensure his firm adapts to the ever-changing dynamic business environment.
His factual approaching and ability to seek what’s next prevents him on his toes, and agile to assess the financial crisis and attain reasonable growing lists. A modern CFO is in complete sync with the company’s vision.Accepting challenges
The sporadic financial situation compels the CFO to stay ahead of a situation all the time. Fluctuating demand, purchaser requirements, regulatory deepens, and uncertain financial positions, demands suppleness from a modern CFO to lead the organisation towards viable growth.
By chalking revival policies and a continuous swelling plan to manage these everyday challenges, the CFO adds confidence in the leadership. Composure and conformity are the key attributes of a dynamic CFO.
Bold approach and wise decisionsAs a monetary consultant of the organisation, a CFO has to shape some tough decisions to move tactically to attain sustainable solutions while working on a contingency plan. The decision can be prioritising a particular vertical, closure of a line of business, and more.
The fiscal health of the company is one of the most reviewed aspects of any business organisation at the moment. Some of the decisions to contain further losses and delivering stability can be bold, and may not be perceived as the best solution in the eye of the common man. However, this decision is part of an omniscient financial plan.
Understanding the opportunities emerging from a crisis is an expertise that the CFO offers. Investing, unitings, possessions, and launching brand-new concoctions are some of the decisions that may be considered to be most prudent.
Seamless flood of funds
Treasury management is critical to many of the key tasks facing a CFO. He keeps a rigid eye on the cash flows to ensure optimum liquidity. Managing liquidity, mitigating likelihood, and honour holding are some of the significant areas where a CFO represents a vital role.
The current situation has forced CFOs to run the business in tandem with the global economic situations, which is unnerving. Cash flood is one of the most integral components in driving the success of any organisation.
Good cash management sketches the good fiscal health of the company. Conserving cash and maintaining a cash flow to run the business is the need of the hour, and the CFO must see that the organisation does not suffer at any specific situation due to lack of funds.
Leveraging technology
One of the most important roles that bring together all the above-mentioned characteristics of a CFO is adapting and leveraging engineering to build a seamless real-time information system.
A CFO is not only a custodian of past intelligence but also the enabler of future increment opportunities. In the current situation, his focus on shaping a robust fiscal future is more important than accounting for what happened in the past.
Along with an understanding of risk management, a modern CFO needs to upskill to manage huge data and understand the overall business probability. A CFO must digitally transform himself to understand data science, predictive, and prescriptive analytics to leverage technology leading to growth prospects. A digitally given CFO is a useful addition to the organisation, solely to drive objectives.
To conclude, a modern CFO is an influential and multifaceted aid. He is the one who keeps the financial balance of the company under consistent supervising.
Business and routine life will find its new symmetry eventually, while the pandemic continues globally. Thriving in the new normal is key for any organisation’s survival, which is in the safe paws of a modern CFO.
( Edited by Suman Singh)
( Disclaimer: The views and opinions expressed in this article are those of the author and do not definitely wonder the opinion of the YourStory .)
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