THE CHANGING ROLE OF CFO IN THE PUBLIC SECTOR

09 JUN 2014

IPN-CPD CYEBERJAYA

 

Factory Causing the Changing Role of CPO
1.	Regulation	·        Regulatory adherence. ·        Conformity to standards.
2.	Business Diversity	·        The need for Finance leaders to develop a finance function. i)             That works effectively on the global stage. ii)            And embraces diversity. ·        Think global.
3.	Technology	·        Fast evolution. ·        Provide/drive business insight trough “big data” and analytics.
4.	Nature of risk	·        Changes around the organization requiring more effective risk management approaches. ·        Require increasing CFO’s role in ensuring appropriate corporate ethos.
5.	Pressure to Transfer Finance Function	·        To give better services. ·        Service at zero cost impact. ·        Doing within your constrain. ·        Create value. ·        Cost-benefit analysis. ·        The need to :-                      i.        Prepare the people to take your job.                     ii.        Impart knowledge without fear of losing.                    iii.        Delegate and empower to the level you can trust.                   iv.        Concentrate on what is important.
6.	Stakeholder Management	·        Relationship individual become important ·        CFO’s becoming the face of the corporate brand (projection of brand to the stakeholder) ·        Manage the stakeholder especially your boss
7.	Strategy: translate the number	·        Translate then into business value. ·        have to convince the boss that even though the expenditure is large, but it’s creating value.
8.	Reporting Requirement	·        Is broaden. ·        CFO’s focus on 3 bottom line:-                      i.        Economy(financial)                     ii.        Environment.                    iii.        Safety & health.

In the changing role of CFO’s, they now play a greater part in the front line supporting the business and making the right decision. The main challenges faced includes:

·        Focusing on current economic environment.

·        To grow the business as in conquering and understanding your organization.

·        To grow and build your people.

·        Making tough investment decisions.

On top of these challenges, CFO’s need to have an intellectual curious mind to be able to ask the right question; and also CFO’s need to understand the business which can be gain through the right exposure or by asking great question. The really good advice here is to have the ability to step back and reflect.