Wednesday, December 21, 2005
The Changing Role of the CFO
The role of the CFO has undergone significant and dramatic change since the early 1980s, with some of the biggest changes taking place in the last decade. Businesses have grappled with a range of developments in the economic and regulatory environments since the late 1990s, including:
•Technology investment. In the run-up to Y2K (the year 2000), companies invested heavily in preparing their IT systems—many opting for enterprise resource planning (ERP) systems to ensure a smooth date-change transition.
•The brick wall. The bursting of the dot-com bubble, in combination with the events of September 11, put the brakes on the global economy in 2001. Businesses were forced to squeeze as much as they could from their past investments, with many eschewing growth initiatives in favor of cost-cutting.
•Brighter skies, but more regulations. In the most recent business cycle, growth and economic optimism have replaced retrenchment. Yet the emergence of new regulations such as Sarbanes-Oxley and Basel II and their attendant compliance costs has kept cost containment on the front burner, while putting pressure on companies to implement more effective internal controls and corporate governance.
posted by Brian Moran @ 9:11 AM