The CFO Lab also serves as a discreet platform for CFOs to share perspectives and experiences with one another. If you are interested in hearing more, please contact Christophe on: christophe@thecfolab.com

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October 2023

What are the key themes you're coming across in the market?

At The CFO Lab, our primary emphasis lies in developing cutting-edge insights to guide CFOs in making strategic investments within their Finance departments to address the challenges of the next 24 to 36 months. CFOs across various industries are especially concerned about the uncertain economic landscape, characterised by high interest rates, high inflation, and sluggish growth, compounded by increasing ambiguity resulting from a deepening multi-crisis environment.

The pandemic underscored a crucial lesson for CFOs and their teams: the need for improved agility and speed in delivering rapid scenario plans to their boards. These plans are essential for enabling organisations to make well-informed decisions in managing risks to their own operations. Consequently, there's a growing emphasis on enhancing this capability, encompassing both the acquisition of top talent and the adoption of advanced technological solutions.

What are the main issues companies are thinking about now?

It's hardly a surprise that CFOs are currently facing two prominent challenges on the horizon: AI and ESG (Environmental, Social, and Governance).

The critical question revolves around effectively harnessing the advancements brought about by the AI revolution while avoiding falling prey to the associated hype. Finance departments have twice experienced the pitfalls of prematurely adopting technological trends. The prior instances of mass adoption of Excel and Access led to prolonged difficulties and expenses in untangling solutions that fell short of the requirements when regulatory frameworks like Sarbanes-Oxley were introduced. The recommended approach for CFOs in implementing AI in Finance is to first identify specific and well-defined use cases, address underlying process issues, and then integrate AI solutions in a thoughtful sequence.

ESG is undeniably a paramount strategic concern for organisations, investors, and society as a whole. Nevertheless, it's merely a matter of time before the precise disclosure requirements that companies must adhere to become standardized. Ultimately, the CFO and their team, along with their systems and data, will bear the responsibility. Consequently, CFOs are now actively contemplating strategies to navigate this forthcoming regulatory reporting challenge, which will have a profound impact across all sectors.

What has been the most interesting thing you’ve read / watched recently?

I've just finished reading Timothy Garton-Ash's, "Homelands – A Personal History of Europe". What captivated me was not only the author's profoundly personal encounters in a rapidly evolving Europe during the 1980s and in the post-Iron Curtain era, but also his significant influence on the policy stage. It appears that he is a constant presence in the Oval Office, Downing Street, or the Elysée.

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Please note: The views and opinions expressed in this interview are those of the individual financial professional(s) and do not necessarily reflect the views or opinions of Alma Strategic. These insights are provided for informational purposes only and may not be relevant at the time of reading, as market conditions can change rapidly. The information provided should not be construed as investment advice or a recommendation to buy, sell, or hold any financial product or security. Individuals should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Alma Strategic disclaims any responsibility for the accuracy or completeness of the information provided in this interview.