Thursday, July 23, 2009

Reviewing of ‘The CFO’s New Environment’

This report is prepared by CFO Research Services in collaboration with ACCA, July 2009.

As a whole, the report discusses about the new roles and functions of CFO in responding to the current economic situation which directly affected the business operations. In general, the business organizations/companies have shifted the normal focus of profit maximization to the cash flow management, working capital and liquidity or in other words to ensure and maintain the stability instead of to keep growing.

In order to arrive to this new focus, the finance people are not left alone, they are getting more support from Boardroom and at the same time their involvement to the daily operation decision are increased. Their team is not only functioned as figures crunchers who have only to prepare the financial report for the purpose of mere disclosure without the participation in operation.

Among the new angles that need to concern are:-

(a) Risk Management

(b) To re-priorities the investment decision – Reduce CAPEX and balancing Working Capital

(c) Ability to understand the operation and get involve.

(d) Increase the level of communication internally and externally.

This new era has put the CFO’s role to be primed and to be considered as a golden age for the CFO.

Hashim

5.48 am

23 July 2009

Riyadh, Saudi Arabia

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