Why improving board communication is time well spent
CFOs have to establish effective relationships with their boards to both fulfill their fiduciary responsibilities and advance their agendas.
When it comes to risks, boards have plenty to worry about. In fact, according to the latest CFO Signals™ survey, their list of concerns is extensive— and growing. External worries for boards include economic health in North America. Then, from an internal perspective, there are strong concerns about the loss and/or succession of key managerial and other talent, as well as the execution—more than the quality—of strategy.
Obviously, it is the CFOs’ responsibility to keep the board up-to-date on how their companies are managing these risks—and to a certain extent, to address their concerns. But new research from Corporate Board Member and Deloitte LLP, titled "Bridging the Gap," reveals differences between CFOs’ and directors’ perceptions about how much time CFOs actually spend on risk management.
In this issue of CFO Insights, we examine that research and discuss ways CFOs can better communicate concerns about risk and in the process possibly raise their own profiles.