CFOs Tackle Enterprise Risk Management

CFOs are facing a rapidly changing risk landscape and discovering they are on the front lines. CFOs are being called upon to manage risk with decision-maker responsibilities. Boards and leaders lack oversight into how their companies manage enterprise risk. CFOs help bridge the gap, so risks are prioritized, capital is allocated, and informed decisions by leadership are made.

Some key factors and considerations for CFOs are:

• Risk prioritization: CFOs need to lead their organizations in prioritizing the risks to focus risk mitigation efforts on.
• Enterprise risk management toolset: Risk managers use many tools, including heat maps, bowtie analysis, and scenario planning. CFOs need to fund the tools that address the top risks without losing sight on lower tiered risks that might warrant attention later.
• Climate reporting: CFOs with global operations are well aware of climate reporting requirements. In the US, CFOs need to be aware of SEC standing with its climate initiative.
• Third-party risk management: CFOs need to be aware where the risk of incidents is higher. Risks posed by third-party vendors require special attention.
• Cybersecurity risk management: As companies modernize operations, there is an increasing demand on AI and digital that increases the risk of cyber incidents. Special plans are needed to mitigate the enterprise risk from cyber.