Analysis Of CFO Role Change

CFO is becoming more and more necessary and has more and more responsibility to uphold and abide by regulations. They are now investing more personal resources in handling regulatory affairs and lobbying policy makers to ensure that new regulatory requirements can bring benefits to enterprises. Future CFO needs to prevent legislation that is too cumbersome and cumbersome. They will need to lobby on behalf of enterprises, implement business processes and agreements that do not require more regulation, and influence the development of relevant policies. They also need to ensure that financial functions of enterprises have professional ability to solve regulatory problems.

　　 Globalization

The globalization of enterprises has had a significant impact on the role of CFO and the composition of financial functional departments. This effect will continue to increase in the future. Future CFO relationships will be global and often virtual, and informal conversations in the corridors will continue to decrease in the past.

Enterprises are rethinking their business models and strategic positioning. Global experience will be a basic requirement for future CFO resume. The basic quality of CFO will be the understanding and understanding of how to implement different business models in specific regions or countries in the face of different strategic challenges and situations.

Expansion has brought new pressures to businesses, such as how to finance new markets and ensure compliance with additional local regulatory frameworks and requirements. The financial function department must have strong adaptability because it simplifies different rules and regulations into the general financial activities of enterprises, and CFO must arrange how to make the financial functional departments best support the expansion of enterprises to emerging markets.

The tactical problem is one thing, and the relationship between culture and cross-border work is completely another matter. As financial responsibilities become more and more internationalized, CFO needs to guide financial functions across different cultures, work practices, beliefs, languages and time zones, and have vision for them. Global leadership will become the cornerstone of future CFO roles.

　　 technology

The emergence of large and complex data, while challenging financial functions, also provides important opportunities for enterprises to analyze business. We hope that financial functions and CFO will be at the center of this data revolution. Analytical tools with more powerful predictive capabilities are constantly being introduced. The increasing intelligence and performance of mobile devices, such as tablet computers, are also promoting a revolution in personal and business ecosystems.

Technological upgrading can collect, collate, standardize and generate data in a more timely manner. This will help to obtain more effective business information, identify new market opportunities and profitability opportunities, assess and manage corporate performance, simulate operational environment, or collect customer opinions. Future CFO and their financial functions must be very good at using this technology. In theory, this means that the time for recording and verifying data will decrease, and the time behind the associated data and analysis data will increase, that is, more financial perspective will be applied to enterprise decision making.

Analysis enables business information to be further refined. It involves not only querying data and reporting information, but also connecting data points, returning, linking, evaluating and predicting future business possibilities. For example, when analyzing customers' interest rates, business messages can identify which customers contribute the most to corporate profits, and data analysis will explain why these customers contribute the most.

Prediction analysis, that is, predicting future performance based on past performance of enterprises, will be the key driving force for CFO and their financial businesses in the future. However, in the turbulent times now facing enterprises, scenario planning and stress testing will increasingly become the top priority of financial functional departments. The next question becomes how to divide the boundaries - useful schemes and parameters are always very limited.

Another question is who will control this great opportunity? Business information and subsequent analysis are initially developed in the field of computer science, information systems and marketing. Financial professionals are the analysts that business takes for granted. From this point of view, analysis will increasingly fall within the scope of management and responsibility of CFO.

　　 Transformation

Reducing costs and improving efficiency has become a better partner for enterprises. This is the typical goal of financial transformation and the primary task of CFO in the future. Today, financial services sharing and service outsourcing business are growing rapidly, which proves that CFO of enterprises is focusing on restructuring and transformation of corporate financial activities.

In many ways, we have achieved many easily accomplished results. CFO uses remote operation mode to carry out labor arbitrage overseas to reduce costs, and also uses financial sharing services to improve efficiency, promote enterprise standardization, improve quality, transaction flexibility and automation. All in all, these measures were successful.

Future CFO will have higher expectations for these financial models. Their demand for optimizing financial operations is more intense, resulting in two major challenges for future CFO. First, we must make the whole financial mode efficient, and get better service and more suggestions from outsourcing service providers, so as to continuously improve the financial operation of enterprises. Second, for the retention of financial functions, we must make the mission within the enterprise group clear, clear tasks, and closely cooperate with external services to provide more effective analysis for enterprises.

The future CFO must ensure that for the enterprise, finance is the catalyst for business transformation, which can affect the long-term performance of the enterprise, rather than the short-term financial situation or the one-time cost reduction.