The crisis had exposed weaknesses in financial institutions’ financial steering and control. Chief Financial Officers were encouraged to integrate strategy and planning, to reinforce the operational links between finance, risk and line management, and to improve in internal controls.
A recent examination of the role of CFOs in Europe revealed some common factors determining success. There are four distinct types of CFO according to the scope of their responsibilities, and this has a significant effect on the performance of a financial institution, both during and after the crisis.
Our view is that CFOs must reach beyond their traditional, statutory duties and play a leading role in several strategic processes. Whether these initiatives require culturally sensitive organisational discussions or process improvements, CFOs need to step up and take the lead in driving through the necessary changes, supplemented by commensurate upgrades in their own organisation’s mandate and capabilities.
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