The CFOs are responsible for managing risks across the organisation. They also provide advice to maximize profits while minimizing financial risks with compliance
The CFOs are responsible for managing risks across the organisation. They also provide advice to maximize profits while minimizing financial risks with compliance
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The role of a Chief Financial Officer (CFO) has evolved over the years. From the days when their primary responsibility was to manage the company’s finances, today, CFOs are strategic partners to the CEO, playing a critical role in shaping business strategies and ensuring long-term sustainability. They are responsible for managing financial risks, navigating market volatility, prioritizing compliance, budgeting, looking for investment prospects, addressing security concerns, and contributing to the success of the organisation.
Rajeev Mantri, CFO, Citi India & Cluster Finance Head, Citi South Asia, underscored the importance of the CFO’s role in managing risks across the organization. He stated that any decision made has an impact on the company’s financial performance, and the CFO must ensure that regulatory compliances are met without neglecting any aspect of the business.
While discussing compliance and its requirements, Suranjit Mishra, Chief Financial Officer and Corporate Governance, Tata Power Delhi Distribution, highlighted the significance of adapting to changing compliance requirements. He emphasized three mantras: internal checks and balances, effective oversight, and connecting with stakeholders as key strategies for compliance to drive organizational success.
On the other hand, Sumit Khadria, Group CFO, EbixCash, stressed the importance of understanding the business to make informed financial decisions. He explained that financial decisions are the culmination of all aspects of the business, and every decision is based on returns on paper while complying with both global and local regulations. Prashant P. Thakar, Chief Financial Officer and Director, Suvidhaa Infoserve, pointed out that maintaining master data as per regulations has become easier over time, but the cost of compliance has increased by 2.5X compared to a decade ago. He highlighted the importance of leveraging technology to streamline processes and reduce costs.
The role of a CFO has expanded beyond financial management to encompass a range of responsibilities that contribute to the organization’s long-term sustainability. They must navigate a complex landscape of financial risks, market volatility, and compliance requirements while ensuring that the organization remains competitive and successful. Technology plays a critical role in this endeavour, enabling CFOs to automate processes, improve efficiency, and reduce costs.
The panel discussion at the BW CFO 4OUnder40 Awards & Summit 2023 in New Delhi provided insights into the evolving role of CFOs and the challenges they face in today’s dynamic business environment. It emphasized the need for CFOs to be strategic partners to the CEO, to adapt to changing compliance requirements, and to leverage technology to drive growth and success.