‘CFOs Just Like Mid-fielders, Take Defence & Move To Attack’
The Bureau of Labour Statistics (BLS) predicts that job growth for Chief Financial Officers (CFOs) will increase by 8 per cent between 2020 and 2030, leading to a major transformation in the CFO world.
According to Sethurathnam Ravi, Managing Partner, Ravi Rajan & Company, the role of a CFO is just like a mid-fielder; they take the defence and move to attack,
This has transformed dramatically in the last ten years, he adds.
On the role of CFOs in start-ups, Ravi says, "It is testified that there is a valuation game for many start-ups with multiple equities holders, and there are many key players in start-up companies."
Earlier, the transformation was for profitability and business growth, but, today, it could be on the basis of profitability, business growth and valuation, he added.
He believes that with this transformation, the role of the CFOs is changing significantly.
A CFO serves as the top financial executive of a company or organisation, but nowadays, CFO doesn't have any single fixed role. He says the role could be debt raising, risk management, and managing shareholder agreements or others.
Ravi also emphasises the role of CFOs in the future and says that data protection will be critical. "With time, we are seeing a tremendous change in the way of working, and most things are shifting online, so, future CFOs have to be ready for it," he adds.
Also, he says there is constant pressure on CFOs to maintain the companies' rating and upgrade it.
