As we move further into 2023, there are several challenges that CFOs may face. Here are some of the most significant ones:
Economic uncertainty: The global economy is likely to remain unpredictable, with the ongoing COVID-19 pandemic, geopolitical tensions, and other factors affecting markets and supply chains. Finance chiefs will need to navigate these uncertainties and adapt their strategies accordingly.
Cybersecurity risks: With the increasing use of technology in finance, cybersecurity risks continue to be a major concern. CFOs will need to work closely with their technology teams to implement robust security measures and ensure their businesses are navigating the ever increasing regulatory demands.
Sustainability and ESG: Environmental, social, and governance (ESG) factors are becoming increasingly important to investors and other stakeholders. CFOs will need to integrate ESG considerations into their financial reporting and decision-making processes.
Talent management: The finance function is facing a shortage of skilled professionals, and CFOs will need to work to attract, retain, and develop top talent. This may involve offering competitive compensation packages, creating a positive workplace culture, and investing in training and development.
Digital transformation: The finance function is undergoing a digital transformation, with the use of artificial intelligence, automation, and other technologies. CFOs will need to stay up-to-date with these developments and ensure their organisations are leveraging them effectively.
Overall, finance chiefs in 2023 will need to be adaptable, strategic, and forward-thinking in order to navigate the challenges ahead and drive their organisations forward.
CFOs are feeling “an all-time high” in their financial and economic uncertainty, topping the previous all-time high of spring 2022. In the UK, 57% are pessimistic about the financial prospects for their companies and sectors. Only a bold 13% say they’re optimistic for 2023. So far, so gloomy. “But there’s still scope to be optimistic,” says Knut Ronning, CFO of financial software company Xledger. “The business environment that will shape the coming year can create good opportunities, too. It’s a great time for acquisitions, for example. That’s not to say the situation isn’t demanding. You still have to make your value proposition very clear.”