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Jun 2016

The role of the CFO on the modern board

Our briefing 'The role of the CFO on the modern board' is based upon a recent CIMA event discussion. It considers the role of the CFO in the context of the evolving board agenda and offers five practical tips on how the CFO can help the board to ensure it makes good use of its limited time.

The CFO is the guardian of the integrity and rigour of all management information, both financial and non-financial, from inside and outside the organisation, across different time frames. The CFO needs to ensure the provision of quality metrics. Furthermore, the CFO connects the dots by providing an understanding of how the different parts of the organisation come together to create value and where the trade-offs are. No amount of information and analysis is useful unless it can be communicated with impact. Most boards are usually drowning in information, so the CFO needs to influence better decisions by communicating insight that meets the board’s needs and is simple and transparent. These responsibilities form the basis of the CGMA® Global Management Accounting Principles, which were launched in October 2014, following a period of extensive consultation. The discussion group agreed with this view and saw the role of the CFO in terms of two key perspectives – tasks and relationships.

Following the release of the briefing, CIMA explored these issues in greater detail through the CFO Dialogue: Managing the board's expectation held in Kuala Lumpur. 

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The role of the CFO on the modern board

The CFO connects the dots by providing an understanding of how the different parts of the organisation come together to create value and where the tradeoffs are.