A CFO in an organization is the second senior-most designation. Thus, being second-in-command may be a great feeling but the gig comes with much stress and challenges. In the present times, the CFO of a company has to confront and also handle many business complexities like good-talent retention, cash flow issues, liquidity problems etc. These are no doubt relevant challenges that cause major heartburn to the senior CFOs. George Ammar, being a senior and a new-age CFO has also faced the challenges that this article will narrate but, has come out with flying colors as well. But, considering the challenges that they face, their approach towards them also help the C-level executives to make prior planning for related complications in advance.
CFO’s of the modern age like George Ammar are not just accountable for business security and finances but, they also have to look into general as well as personnel management. Across different industries, CFOs generally encounter some common challenges. Bearing that in mind, one must also not forget that every challenge has a possible solution to it as well. The common issues are as follows:
Technological Trends and Spends
Technology is never static and is constantly advancing. Thus, it is crucial to keep up with it at all levels of business operations. The technological advancements & improved methods of information presentations are evolving. CFO’s are facing difficulty in coping with modern enterprise Cloud Applications like Workday in place of Oracle or SAP.
As it is a known fact that technology is prone to continuous improvements, there is nothing to be intimidated as newer technologies become available. Embracing these technologies will only be of practical help to the organization despite the initial issues in adaptation. It’s time to use it to your advantage.
Risk of Security Breaches
The finance department of any organizations holds delicate and sensitive information that requires hard-core security, especially in the increasing cyber attack landscape. These are common business threats coming from online mediums that CFOs find challenging to find solutions for.
Go, cloud-based! This is the best possible solution as these systems are better than the outdated ones that make cyber-attacks easier.
Discovering & retaining good talent
Having the skills to turn accessed data into information does not suffice for the CFOs and finance professionals of today. It isn’t easy to find efficient talent that your company requires in today’s competitive market scenario. But, it is all the more challenging to retain that talent. CFO’s are finance people but also have to put their heads into personnel management which becomes a problem.
Employee engagement programs must include making them feel motivated and valued. Bonuses or pay raises are not the only motivating solutions. You can think of other cost-effective ways too. Not everybody is skilled to handle everything. Admitting this and outsourcing parts of the finance team thus becomes necessary.
The CFO is accountable to see that the business finances are in sync with government compliance and rules. It is often challenging to keep up with sudden changes in these rules.
As a CFO, you must have up-to-date information about these changes. Also, make prior plans to reduce the impact of such changes to even out the transition process.