In the broadest of strokes, a chief financial officer (CFO) is responsible for overseeing and influencing a company’s financial activities, according to Investopedia. However, this position also has some specific responsibilities that are not always directly related to monitoring financial numbers.
A CFO needs to have a strong grasp of how their business operates. That means understanding the business model as well as how the business fits into its industry. In turn, this knowledge can be used to push other departments, such as operations and marketing, in a constructive manner. The knowledge can also help with top-level decision making at the company.
Risk Management and Strategic Advice
A CFO plays a huge role when it comes to risk management. That means accurately assessing risk and mitigating it when necessary.
Additionally, this position provides strategic advice, whether that applies directly to risk management or other considerations. Their financial knowledge plays a huge role when it comes to predicting future events and trends, and helping the company plan and react accordingly. Additionally, the CFO is often responsible for communicating the company’s strategic moves and the reasoning behind those moves to others.
When it comes to adhering to regulations, the CFO also has an important role. For instance, the officer must make sure the company adheres to guidelines set by the Securities and Exchange Commission, including generally accepted accounting principles. Other regulations and regulating bodies may come into play as well.
Being a Leader
As a high-level executive, this position is responsible for delivering leadership to the company. They need to give advice and urge caution when necessary. And because they touch so many different parts of the company, they must be good at communicating information in a clear, accessible manner.
If you enjoyed this article, be sure to check out the rest of Grecco Capital’s blog content!