contents

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Contents

Environment

Top 10 Business Risks – 2010

Facets of CFO Role

Balanced Score Card – Business & Finance

Evolving role of CFO

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Environment

U.S.A.

Continued economic slowdown

High household debt

Rising unemployment

High fiscal deficit

Credit rating down grade

Contd.

3

Environment

Europe

Sovereign debt problems

Slowdown in economic growth

Inflexibility due to common currency

Contd.

4

Environment

Japan

After effects of Tsunami

Risks relating to nuclear plant and power shortages

Stagnated economy

Contd.

5

Environment

Asia

Robust domestic demand

Rising inflation driven by commodity prices

Large capital inflows

Compulsion to maintain higher growth rate to control unemployment

6

Top 10 Business Risks - 2010

1. Regulation and compliance (2)

2. Access to credit (1)

3. Slow recovery or double-dip recession (No change)

4. Managing talent (7)

5. Emerging markets (12)

Contd.

7

Top 10 Business Risks - 2010

6. Cost cutting (No change)

7. Non-traditional entrants (5)

8. Radical greening (4)

9. Social acceptance risk and corporate social responsibility (New)

10. Executing alliances and transactions (8)

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Facets of CFO Role

Business partnering

Functional excellence

Fiduciary responsibility

Corporate governance

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Balanced Score Card BusinessFinance

Functional Excellence

Financial Perspective

Controller’s Role

Internal Process

Business Partnering

Customer

People

Learning & Growth

10

Business Partnering

Gain business knowledge.

Strategy formulation.

Bench marking.

Competitive intelligence.

Contd.

11

Business Partnering

Aid in forecasting / range planning

Make or buy decisions

Evaluate investments / new ventures

12

Functional Excellence

Value creation through financial strategies

Zero surprise

Sound accounting principles

Segment reporting

Bench marking with peers

Contd.

13

Functional Excellence

Consistent information to shareholders

Knowledge management

Cost management

Awards

14

Fiduciary Responsibility

Strong internal controls

Credible financial statements

Enterprise risk management

15

People Development

Build, motivate and run high talent team

Coaching and career planning

Continuous training

16

Corporate Governance

Compliance with the law of the land

Interaction with regulators

Transparent reporting

Arms length dealings

Views based on facts and data, not perception

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Evolving role of CFO

Execution

Trusting the numbers

• Ensuring business decisions are grounded in sound financial criteria

Providing insight

• Providing insight and analysis to support CEO and other senior managers

Contd.

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Evolving role of CFO

Enablement

Getting your house in order

• Leading key initiatives in finance that support overall strategic goals

Funding organizational strategy

• Funding, enabling and executing strategy set by CEO

Contd.

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Evolving role of CFO

Development

Development of business strategy

• Developing and defining the overall strategy for your organization

Contd.

20

Evolving role of CFO

Communication to the external marketplace

•Representing the organization’s progress on strategic goals to external stakeholders

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“The perfect finance person has mastered the technical, they’re strong on the interpersonal, they have worked in different countries and done operational roles and seen finance from the other side of the fence.”

By Andy Halford, Vodafone.