Cfo Changing Roles

Topics: Finance, Management, Corporate governance Pages: 3 (1085 words) Published: October 30, 2005
Touro University International

Hanumanthappa C VijayaKumar

Course: FIN501

Module 1: Introduction to Financial Management

Case Assignment: CFO

Professor: Dr. Geoffrey Clarkson

In this case study we will articulate why CFO's role is getting more and more complex and is getting multitasking along with some regulations passed post Enron and post worldcom era. The CFO's role is not only expanding but also demanding regulatory compliance which has made the role much challenging. A recent Survey shows at that most of the finance manager would not like to take the post of CFO in near future because of the complexity of the role and new regulation like SOX in place. SO The CFO Job has become less desirable with all the new developments. CFO Then and Now:

In the traditional executive suite the CFO's role was to keep tabs on the money – what came in and what went out - and then make sense of that information for the board of directors and top management. Today CEO's are delegating high level management responsibilities at such a rapid rate and regulations are piling up that CFO's are being stretched even further putting them on the hot seat. Now CFO's not only need to have finance expertise and leadership but also integrity, strategic vision, communication skills and business acumen. Other than the CEO, the CFO is the only executive who touches every aspect of the business, internally and externally. Now they have to be savvy enough to be effective in operational reviews and to play coach. Growing competition, a sharper focus on corporate governance and technological innovation all play a part in radically changing the way CFOs impact an organization. The CFO must have an array of skill sets to survive and thrive. Sarbanes-Oxley has stepped up accuracy, but the pressure to get the numbers right is weakening finance executives' threshold for risk. Today's CFO clearly needs to be a partner with the CEO and, in the case of larger...

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