# The evolving role of the CFO Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-03-29 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: The Evolution of Financial Decision Makers in a Globalised Meta Description: Discover how financial decision makers have shifted from 'number-men' to 'value creators' in a fast-paced, risk-laden business landscape. URL: https://financedigest.com/the-evolving-role-of-the-cfohtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/img0489-1845-1737287671355-compressed.jpg) By **Tim Vine**, Head of European Trade Credit at Dun & Bradstreet In an increasingly globalised and digitalised world, roles in business are not what they used to be ten or twenty years ago. It would be unheard of, or at the very least unusual, to have a CIO or COO in a company, but these days businesses cannot do without them. So what of the CFO, the financial backbone and core of an organisation? Their roles are under increasing scrutiny internally and externally, and thus their [role has transformed](https://www.financedigest.com/the-root-of-all-good-sustainabilitys-role-in-digital-transformation.html "The Root of All Good: Sustainability’s role in Digital Transformation") from “financial engineer” or “number-men” in the 1990s, to “super controller” in the wake of Sarbanes-Oxley. A more “strategic CFO” is _du jour_. Financial decision makers (ranging from CFO to [credit risk manager](https://www.financedigest.com/enhancing-credit-exposure-management-through-graph-analytics.html "Enhancing Credit Exposure Management Through Graph Analytics")) must now focus on mitigating risk, but not in its traditional, original form involving little risk-taking. A financial decision maker’s reputation has been cemented as a roadblock on fast growth, but companies these days expect much more. Their new remit is focussed on [driving growth](https://www.financedigest.com/football-shoes-market-globally-expected-to-drive-growth-through-2021-2031.html "Football Shoes Market Globally Expected to Drive Growth through 2021-2031"), and is thus under increasing pressure to mine big data to understand and mitigate risks, improve operational efficiency and identify opportunity. In short, the modern financial decision maker has three core characteristics within business. They are the _financial steward, a value creator and a value accelerator._ This new remit is in no small part down to a progressively challenging landscape where there is increased financial risk due to [businesses globalisation, rising cases of bankruptcy and fraud and businesses struggling to achieve steady and significant growth](https://www.financedigest.com/euro-zone-business-growth-slowed-in-may-as-factories-struggled-pmi.html "Euro zone business growth slowed in May as factories struggled-PMI") largely due to economic and political uncertainty. What has happened in the [world politically in the last six months](https://www.financedigest.com/world-food-price-index-falls-for-sixth-month-in-sept-fao.html "World food price index falls for sixth month in Sept -FAO") alone has made businesses even more concerned about declining stability and stunted growth. We can even see this shift in a financial decision maker’s remit in [trade credit](https://www.financedigest.com/why-is-trade-credit-insurance-important.html "Why is Trade Credit Insurance Important?"), for example; a staple of the modern business environment is where goods or services are purchased on account and paid for later. It is also a key tool for [business growth](https://www.financedigest.com/new-uberall-research-shows-global-increase-in-online-engagement-with-local-businesses-during-covid-uk-leads-with-42-percent-growth.html "New Uberall research shows global increase in online engagement with local businesses during Covid, UK leads with 42 percent growth"). Here, credit professionals need to [assess and make bold decisions about risk and opportunity](https://www.financedigest.com/opportunity-assessment-of-rail-wheel-and-axle-market-reveals-lucrative-prospects-for-manufacturers.html "Opportunity Assessment of Rail Wheel And Axle Market Reveals Lucrative Prospects for Manufacturers") – balancing the need to avoid bad risk and accept smart risk – or rather, maximise working capital and minimise bad debts. Using this knowledge, they need to share their findings and tools with sales [teams needed to grow](https://www.financedigest.com/the-digital-voice-adtech-pr-agency-grows-team-by-eight.html "The Digital Voice Adtech PR Agency Grows Team By Eight") and to ensure they are harnessing all insight to drive business forward. And thus we shouldn’t underestimate the [power of data used in making these decisions about risk and opportunity](https://www.financedigest.com/cycling-power-meter-market-to-offer-lucrative-growth-opportunities-for-players-during-the-forecast-period-2018-2026.html "Cycling Power Meter Market to Offer Lucrative Growth Opportunities for Players During the Forecast Period 2018 – 2026"). As data analytics has evolved, so has a financial decision maker’s role within the company; the data that they use is involved in looking at the financial background of a business to [credit analysts assessing whether potential customers have a strong credit rating](https://www.financedigest.com/credit-suisse-group-rating-downgraded-by-sp.html "Credit Suisse Group rating downgraded by S&P"). But [data is pointless without the tools to turn](https://www.financedigest.com/sterling-falls-vs-dollar-as-focus-turns-to-uk-data.html "Sterling falls vs dollar as focus turns to UK data") it into intelligence, and this is where the modern, data-fuelled decision maker must come into their own. They must use this information and [turn it into actionable assets that will drive](https://www.financedigest.com/baby-food-industry-will-turn-to-drive-sales-growth-of-functional-dairy-ingredient-market-fact-mr-report.html "Baby Food Industry Will Turn To Drive Sales Growth Of Functional Dairy Ingredient Market, Fact.MR Report") revenue, efficiency and a host of other benefits for their organisation. It’s [clear to see that companies are increasingly shifting away](https://www.financedigest.com/turkey-clears-away-rubble-from-earthquake-rescue-efforts-wind-down.html "Turkey clears away rubble from earthquake, rescue efforts wind down") from the rigid roles that financial decision makers once occupied. [Expectations on CFOs and the like are much higher](https://www.financedigest.com/italian-hearing-aid-maker-amplifon-expects-higher-2023-earnings.html "Italian hearing aid maker Amplifon expects higher 2023 earnings"), so that companies don’t fall into sclerotic management that could impede growth. It is now about not just taking risks, but ‘smart’ risks that will help turn these financial decision makers into [enablers for business growth](https://www.financedigest.com/enabling-strategic-growth-across-the-circular-economy.html "Enabling strategic growth across the circular economy"). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---