PROFIT | CFOS IN FOCUS
CFOs most likely to become CEOs during uncertain times But that ’ s not all . The outlook for the global economy in the short-to-medium term is paved with greater uncertainty .
Fluctuating energy prices brought about by geopolitical and other macro-economic challenges have led to significant supply disruptions , large currency fluctuations , commodity prices rising , public government deficits and cost cutting , inflationary pressures in some countries , and ongoing environmental challenges .
All this is taking place against the backdrop of an inexorable longer-term shift of power gravitating from west to east , born by the growth of Brazil , Russia , India , and China ( BRIC countries ), which are in turn facing their own growth challenges with the rise of new emerging economies .
These macro-economic trends have a significant impact on the way in which businesses operate , the priorities they face , and the strategies they develop to succeed on a global platform . This is the global environment in which tomorrow ’ s CFOs will operate . It presents challenges they must embrace , and opportunities they must leverage .
To gain a deeper understanding of the reasons behind the dynamics that make CFOs more likely to become CEOs , the first factor leadership considers is economics . Financial acumen is more likely to be in demand during times of hardship – a theory that was proven during the pandemic . This includes a range of skill sets related to various company verticals , such as strategic leadership , performance management , policy regulation , stakeholder management , corporate communications , digital technologies including Big Data , and analytics .
How CFO roles are changing – what tomorrow holds But hang on , there is more . CFOs now have an increasing personal stake in , and accountability for , regulatory adherence and compliance – engaging policymakers to ensure new regulatory requirements provide benefits to the business .
The CFO position has expanded in scope because of the increased external exposure of businesses to the whims of the financial markets and greater shareholder scrutiny . Companies in highly regulated sectors like banking and utilities are more likely to hire a CEO with prior finance
38 January 2023