Strategic uncertainty and the role of the CFO
Finance's voice in steering the conversation
By forming partnerships between finance and the business units, CFOs should lead the conversation by championing an integrated approach that balances strategy, risk, and finance in critical decisions. CFO involvement in those decisions, as well as alignment between those decisions and the CFO's priorities, are increasingly important if companies want to navigate uncertainty-related challenges ahead.
Companies across the globe often struggle to define, execute, and communicate their business strategies to key stakeholders. Still-slow economic growth, ongoing questions about government fiscal direction, and a host of other challenges create “strategic uncertainty” for many corporate leaders, making them exceptionally cautious about investments and content to hold onto cash.
CFOs and senior finance executives have an increasing voice in strategic decisions. By applying a strategic execution framework, finance executives can provide a unique perspective and specific actions that contribute to better decisions and greater value creation.
In this article, learn how finance executives can help inform strategic decisions and guide business partners across the enterprise in six specific areas:
- M&A transactions
- New product launch
- New market entry
- Risk-adjusted forecasting
- Capital investments