In a business environment marked by volatility and uncertainty, the CFO plays a crucial role in comprehensive risk management, tasked with mitigating risks while also supporting—and even driving—the organisation’s growth.
It remains a clear example of how the CFO’s role has evolved into increasingly strategic functions, making it critical to find the level of “balance” that best suits the company’s needs and capabilities, always ensuring stability alongside growth opportunities.
This is a dynamic balance that, due to constantly changing variables, requires continual “recalibration” over time, demanding vision, planning and efficient resource management from the CFO.
They hold a significant advantage in their close understanding of the business, which enables them to identify synergies across different areas to align goals (beyond purely financial ones) with the company’s overall strategy.
While financial risk management has historically been an area of natural leadership for the CFO, the scope of their role has expanded to include any risk that might significantly impact the company.
This shift has changed perceptions of the CFO: from the traditional figure often seen as the one saying “no” to new projects due to their cost, to someone who must now act as a “facilitator”, always looking for ways to make growth initiatives viable.
Therefore, the main challenge is to find the optimal point between prudent, reasonable risk management and the necessary ambition to drive business development.
If the balance tips too far toward the “safe zone,” the company risks missing important new business opportunities. The same is true in the other direction: leaning too far toward risk can threaten the company’s stability and continuity.
Accordingly, it is the CFO’s role to balance profitability with the organisation’s long-term survival, enabling the company to seize opportunities while avoiding risk levels that could jeopardise its continuity.
Driving growth without compromising stability requires making strategic decisions based on data analysis and risk assessment, always aligned with long-term objectives.
This reality demands the development of new competencies that go beyond traditional financial expertise—such as strategic thinking—so the CFO can work alongside the CEO to lead the company’s growth.
An equally important aspect is managing multidisciplinary teams across different areas of the organisation to implement initiatives that balance assumed risk with sustainable growth.
Another key point is aligning ESG (Environmental, Social and Governance) factors, not only from a financial perspective but as part of overall business strategy.
The goal is to provide leadership that drives the transition toward a more sustainable organisation, reducing its environmental impact.
Ultimately, the CFO has become the architect responsible for balancing prudence in risk management with the ambition required to drive growth.
Their ability to navigate this delicate and constantly changing balance will determine the organisation’s long-term success and sustainability, making this skill a critical part of the CFO’s role.
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