Role of Cfo
Past Role of CFO
The past role of Chief Financial Officer(CFO) revolved around the following key core areas
Performing the role of the operating manager of finance function, controlling compliance and statutory reporting in publicly traded companies.
Counselling role or Advisory role and help in bringing about orderly and control centric growth in companies.
Performing the treasury duties which involve decision making on how to invest the company’s money, taking into consideration risk and liquidity.
Deciding the Capital Structure of the company. The CFO should determine the best mix of debt, equity and internal financing in the company.
Present Role of CFO
Currently the Indian economy is in a crisis situation with increasing Current Account Deficit (CAD) and huge fall in the rupee. The situation is getting worser with the possibility of US Attack on Syria. The GDP growth of India is at the sub 5% level and WPI inflation has rose above 6%.The role of CFO becomes even more important in the current situation with the rupee depreciating against the dollar and negatively impacting the balance sheet of most of the Indian companies except those firms which are export oriented and IT Firms. CFOs in the present day organizations are largely restricted to the responsibilities of providing the top management with financial data gathered from both outside and within the organizations. The finance department acts as a medium through which business plans are prepared based on financial projections.
In regard to India, a CFO today is concerned with the following issues
A major chunk of the Indian CFO’s believe that revenue growth/preservation, cost reduction and maintenance of talent pool are the major organizational challenges.
Presently, Indian CFOs have limited participation in the strategic role.
Most of Indian CFOs are not involved in sustainability strategy and governance. Sustainability functions include internal controls, compliance with tax
The past role of Chief Financial Officer(CFO) revolved around the following key core areas
Performing the role of the operating manager of finance function, controlling compliance and statutory reporting in publicly traded companies.
Counselling role or Advisory role and help in bringing about orderly and control centric growth in companies.
Performing the treasury duties which involve decision making on how to invest the company’s money, taking into consideration risk and liquidity.
Deciding the Capital Structure of the company. The CFO should determine the best mix of debt, equity and internal financing in the company.
Present Role of CFO
Currently the Indian economy is in a crisis situation with increasing Current Account Deficit (CAD) and huge fall in the rupee. The situation is getting worser with the possibility of US Attack on Syria. The GDP growth of India is at the sub 5% level and WPI inflation has rose above 6%.The role of CFO becomes even more important in the current situation with the rupee depreciating against the dollar and negatively impacting the balance sheet of most of the Indian companies except those firms which are export oriented and IT Firms. CFOs in the present day organizations are largely restricted to the responsibilities of providing the top management with financial data gathered from both outside and within the organizations. The finance department acts as a medium through which business plans are prepared based on financial projections.
In regard to India, a CFO today is concerned with the following issues
A major chunk of the Indian CFO’s believe that revenue growth/preservation, cost reduction and maintenance of talent pool are the major organizational challenges.
Presently, Indian CFOs have limited participation in the strategic role.
Most of Indian CFOs are not involved in sustainability strategy and governance. Sustainability functions include internal controls, compliance with tax