A CFO’s role in risk management
CFOs should holistically evaluate their companies’ risks while challenging their internal audit teams to ensure that their strategy is aligned with the imperatives of the company but also structured to identify emerging risks.
Risk management – find out more
Risk management – a key CFO issue
Today’s CFO has an expansive financial perspective with a view of the “big picture.” That’s why risk – with its bearing on all aspects of an organization – must be viewed through the CFO lens. By monitoring the economic impact of risk, CFOs are most adept at managing resource allocation and scenario planning.
Risk management demands top-tier attention for three primary reasons:
- The pace of business complexity is so brisk that it’s outpacing the sophistication of risk management, leaving companies vulnerable.
- The risk implications of social media are tremendous; business ramifications are immediate.
- The correlation between risk management and bottom-line performance is strong and direct.
CFOs must use risk management to improve the predictability of results, optimize resources, protect organizational assets and enable growth. Seizing business opportunities is often heavily dependent on the CFO’s ability to identify, assess and manage risks. Inability in this area is risking business and exposing vulnerability.
CFOs should consider marrying risk management and performance measures. There’s a strong correlation between the two, and by unifying the scope, the organization can achieve a better return on its risk management investment.