- Chief financial officer
The chief financial officer (CFO) or Chief financial and operating officer (CFOO) is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management. In some sectors the CFO is also responsible for analysis of data. The title is equivalent to finance director, a common title in the United Kingdom. The CFO typically reports to the chief executive officer and to the board of directors, and may additionally sit on the board.
Most CFOs of large companies have finance qualifications such as an MBA or come from an accounting background. A finance department would usually contain some accountants with Certified Public Accountant or equivalent status. The Sarbanes-Oxley Act of 2002, enacted in the aftermath of several major U.S. accounting scandals, requires at least one member of a public company's audit committee to be a financial expert.
Federal government of the United States
The federal government of the United States has incorporated more elements of business-sector practices in its management approaches, including the use of the CFO position (alongside, for example, an increased use of the chief information officer post, within public agencies).
The Chief Financial Officers Act, enacted in 1990, created a chief financial officer in each of 23 federal agencies. This was intended to improve the government's financial management and develop standards of financial performance and disclosure. The Office of Management and Budget (OMB) holds primary responsibility for financial management standardization and improvement. Within OMB, the Deputy Director for Management, a position was established by the CFO Act, is the chief official responsible for financial management.
The Office of Federal Financial Management (OFFM) is specifically charged with overseeing financial management matters, establishing financial management policies and requirements, and monitoring the establishment and operation of federal financial management systems. OFFM is led by a controller.
The CFO Act also established the CFO Council, chair by the OMB Deputy Director for Management and including the CFOs and Deputy CFOs of 23 federal agencies, the OFFM controller, and the Fiscal Assistant Secretary, the head of the Office of Fiscal Service of the Department of the Treasury. Its mandate is to work collaboratively to improve financial management in the U.S. government and "advise and coordinate the activities of the agencies of its members" in the areas of financial management and accountability.
OMB Circular A-123 (issued 21 December 2004) defines the management responsibilities for internal financial controls in federal agencies and addressed to all federal CFOs, CIOs and Program Managers. The circular is a re-examination of the existing internal control requirements for federal agencies and was initiated in light of the new internal control requirements for publicly-traded companies contained in the Sarbanes-Oxley Act of 2002.
While significant progress in improving federal financial management has been made since the federal government began preparing consolidated financial statements, the Government Accountability Office (GAO) reported that "major impediments continue to prevent [GAO] from rendering an opinion." In December 2006, the GAO announced that for the 10th consecutive year, the GAO was prevented from expressing an opinion on the consolidated financial statements of the government due to a number of material weaknesses related to financial systems, fundamental recordkeeping, and financial reporting.
At the same time, in calendar year 2007, the CFOC announced that for the second consecutive year, every major federal agency completed its Performance and Accountability Report just 45 days after the end of the fiscal year (2006).
In today’s increasingly challenging and volatile macro world, the role of the CFO has evolved significantly. Traditionally being viewed as a financial gatekeeper, the role of the CFO has expanded and evolved to a strategic partner and advisor to the CEO. In fact, in a report released by McKinsey, 88 percent of 164 CFOs surveyed reported that CEOs expect them to be more active participants in shaping the strategy of their organizations. Half of them also indicated that CEOs counted on them to challenge the company’s strategy.
The uneven pace of recovery worldwide has made it more challenging for many companies. CFOs are increasingly playing a more critical role in shaping their company’s strategies today, especially in light of the highly uncertain macroeconomic environments, where managing financial volatilities is becoming a centerpiece for many company’s strategies, based on a survey held by Clariden Global.
The duties of a modern CFO now straddle the traditional areas of financial stewardship and the more progressive areas of strategic and business leadership with direct responsibility and oversight of operations (which often includes procurement) expanding exponentially. This significant role-based transformation, which is well underway, is best-evidenced by the “CEO-in-Waiting” status that many CFOs now hold. Additionally, many CFOs have made the realization that an operating environment that values cash, profit margins, and risk mitigation is one that plays to the primary skills and capabilities of a procurement organization, and become increasingly involved (directly via oversight or indirectly through improved collaboration) with the procurement function according to a recent research report that looks at the CFO's relationship with procurement.
Corporate titles Chief officersChief accounting officer · Chief administrative officer · Chief analytics officer · Chief audit executive · Chief brand officer · Chief business officer · Chief channel officer · Chief commercial officer · Chief communications officer · Chief compliance officer · Chief creative officer · Chief data officer · Chief executive officer · Chief financial officer · Chief human resources officer · Chief information officer · Chief information security officer · Chief knowledge officer · Chief learning officer · Chief legal officer · Chief marketing officer · Chief merchandising officer · Chief networking officer · Chief operating officer · Chief procurement officer · Chief product officer · Chief risk officer · Chief science officer · Chief stores officer · Chief strategy officer · Chief technology officer · Chief visionary officer · Chief web officer Other titles Related
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Chief Financial Officer — ( CFO) The officer of a firm responsible for handling the financial affairs of a company. Bloomberg Financial Dictionary * * * chief financial officer chief financial officer ➔ officer * * * chief financial officer UK US noun [C] (also chief… … Financial and business terms
Chief Financial Officer — Die Funktionsbezeichnung Chief Financial Officer (CFO) aus dem angelsächsischen Raum entspricht im Deutschen etwa dem Kaufmännischen Geschäftsführer oder Finanzvorstand bei Aktiengesellschaften (Finanzwesen). Im Zuge der Internationalisierung… … Deutsch Wikipedia
Chief Financial Officer — Directeur financier Pour les articles homonymes, voir DF et DAF. Directeur financier … Wikipédia en Français
chief financial officer — noun The executive who is in charge of financial affairs, notably as head of a financial department, typically directly under the chief executive officer and/or the board who lead the corporation or other organisation as a whole Syn: financial… … Wiktionary
chief financial officer — person responsible for the financial issues of a company or large organization, CFO … English contemporary dictionary
Chief Financial Officer — CFO The head of an organization’s financial and accounting functions … Auditor's dictionary
chief financial officer — /tʃi:f faɪ nænʃəl ˌɒfɪsə/ noun an executive in charge of a company’s financial operations, reporting to the CEO. Abbreviation CFO … Dictionary of banking and finance
chief financial officer — noun the corporate executive having financial authority to make appropriations and authorize expenditures for a firm • Syn: ↑CFO • Hypernyms: ↑corporate executive, ↑business executive … Useful english dictionary
Chief Financial Officer of Florida General Election, 2006 — Chief Financial Officer of Florida Election, 2006 2002 ← November 7, 2006 → 2010 … Wikipedia
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