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CFO Competencies

The CFO’s Role

A Chief Financial Officer (CFO) is a senior executive who carries a wide range of responsibilities, including financial reporting, high-level decision making, financial reporting, strategic financial management, performance evaluation, as well as investment decisions.

CFOs must have an extensive and comprehensive understanding of finance and accounting, enabling them to assist businesses in achieving their short- and long-term objectives, develop financial strategies in various sectors, and provide insights to the company. CFOs are also responsible for measuring and reporting on an organization's performance in compliance with relevant standards and regulations.

Strategic and Tactical Planning

Assess key business factors and drive value through strategic planning, development, and execution
Evaluate alternative decisions using analytical techniques and make recommendations
Identify cost drivers and perform cost modeling to enhance organizational decision-making
Analyze long-term investment alternatives using quantitative and qualitative techniques and make recommendations
Identify, assess, and manage risks within an organization
Project financial and operational resources needed to develop a financial plan in line with the organization’s strategic goals
Manage a company’s short-term and long-term financing needs
Design performance management systems, evaluate the success of strategic and tactical initiatives and recommend corrective actions where appropriate

Reporting & Control

Implement systems and processes to ensure data security, protection of an organization’s assets, and compliance with all legal and reporting requirements
Leverage financial accounting skills to record and analyze financial transactions and balances
Support external financial reporting by compiling and analyzing costs incurred by an organization
Leverage financial accounting skills needed to prepare financial statements for internal and external stakeholders
Analyze a company’s financial statements to assess the performance
Implement procedures and processes to ensure accurate and timely tax filings and effective tax strategies
Report organizational value created over time for stakeholders and society, including financial and non-financial information

Digital Technology & Data Analytics

Use technology to support operational and financial processes, solve problems, analyze data, and enhance overall business performance
Ensure the availability, utility, integrity, and security of data
Extract, transform and analyze data to gain insights, improve predictions, and support decision making
Present data visually to better explain key patterns, trends, and correlations

Business Acumen & Operations

Understand and master the dynamics of a business and identify the drivers of success in the relevant industry
Act as a valuable business partner to operational units outside the accounting/finance department
Use quality management and continuous improvement tools and techniques effectively
Plan and organize resources, both people and financial, to complete a major undertaking or event

Leadership

Listen effectively to others and communicate ideas through various forms, whether written, spoken, or non-verbal methods
Influence, motivate, and gain the support of others to achieve organizational goals through emotional intelligence, accountability, and setting the “tone at the top”
Work effectively with others to build trust and yield positive results
Lead an organization, team, or individuals towards a desired goal or vision
Resolve issues using appropriate methods to attain ideal outcomes for the organization
Reach an agreement between two or more parties to yield an outcome suitable for negotiating parties
Select, develop, retain, and reward people to ensure a strong workforce and successful business performance

Ethics Compliance

Comply with a set of guiding principles that govern a person’s behavior in the workplace
Identify ethical conflicts and lapses in the workplace and take appropriate action
Execute the organization’s strategy with integrity and in compliance with the law, regulations, and standards

Importance of Finance Professionals

Finance professionals possess a thorough and comprehensive understanding of accounting and finance and acknowledge the impact these disciplines have on business operations across various industries.

A career in finance includes job roles such as In a professional environment, finance individuals can emerge as financial accountants, financial controllers, group accountants, or management accountants. Business finance is more than passing exams and getting certified. Gaining relevant experience within the profession is key to developing real-world competencies to manage and help organizations achieve their’s financial and business goals.

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