We have more data than ever …
… which, however, does not always mean we have the capacity to analyse it and gain insights on how to mitigate risk. Modern CFOs can take on this job and inform others about the risks and uncertainties.
Don’t underestimate risk management
Enterprise risk management should be integrated with strategic and business planning. If you have ever experienced some operational surprise stemming from unanticipated risk, you know you need to do better.
Apart from increasing volumes of data, there are certain technological innovations which may disrupt your business model. Therefore you need to start capturing and analysing data in good time and use the insights to spot developing risks and opportunities. Only if you do this can you adjust your business model and strategy accordingly, according to the cfo.com website.
Given the shortage of talents in the field, anyone able to crunch vast amounts of data will shine in a leading finance function. Finance professionals are trained in analysing complex data and can manage complex risk.
There should be integrated reporting, including:
- financial data
- integrity of supply chains
- value of the brand
- potential for disruption by new technology
- extracting value from data
A CFO is a leader whose team understands data modelling, risk, and how all this relates to business performance. Automation is freeing finance staff from repetitive tasks. Therefore, they should be able to move from core accountancy based functions to digital and data analysing activities. CFOs should then push for the adoption of the above-mentioned integrated enterprise risk management processes.
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