Your World of Legal Intelligence
 United Kingdom | +44 (0) 20 7284 8080

CIMA is working to give businesses the tools to aid both immediate survival and long-term competitiveness.

Document Cited in Related
Vincent
AuthorLowth, Glynn
PositionIn business - Chartered Institute of Management Accountants

The business world has always been a risky place, of course, but there are some good reasons for us to believe that it's riskier today than it ever has been. The recession and the market failures we have seen after the turmoil in the financial services industry are only part of a particularly potent cocktail that includes increasing supply-chain complexity, rapid technological change, climate change, globalisation, the emergence of new markets and growing political uncertainty.

This serious situation is also prone to rapid and unpredictable change, which can have serious repercussions for the economics of an organisation's strategy. Such uncertainty requires businesses to stay focused on the right management information so that they can chart their way through safely. The CFO's role, therefore, is arguably more crucial than ever. CFOs must play a central role, not only in providing that information but also in supporting effective decision-making. They must manage cash flow; streamline capital spending, challenge any unrealistic assumptions underpinning strategic plans; secure funding; and develop crisis plans. And then there is the need to manage risk while appraising investment opportunities to secure the long-term future of the business. This delicate but crucial balance between short-term survival and future competitiveness can be achieved only when the CFO is in a position to provide an objective picture of the organisation's position so that informed and sensible decisions can be made.

CIMA is undertaking short-and long-term initiatives to understand the situation and to help its members, wherever they are in the world, navigate their way through the immediate dangers. Managing risk and performance through the business cycle is one area that we have been focusing on recently, for example. Companies can be prone to oscillating between two extremes here: they tend to let their guard down and become complacent when business is good, but often they overreact in the opposite way when...

To continue reading

Request your trial
COPYRIGHT TV Trade Media, Inc.
COPYRIGHT GALE, Cengage Learning. All rights reserved.

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT