How Kyriba Helps CFOs Avoid Risk

⇨ CFOs must contend with more responsibilities than ever before, like security, ESG, and GRC concerns.

⇨ CFOs should leverage emerging technologies like AI and automation to keep up with their tasks.

⇨ Data and analytics are crucial to withstanding financial instability and supply chain disruptions.

The office of the CFO has seen its role expand significantly in recent years. Governance, regulatory, and compliance concerns are now piled onto the financial priorities that CFOs have. Because of their position in the company, CFOs are uniquely suited to steer their organizations away from financial risk.

With all the challenges that CFOs face, it can be difficult for them to know where to start. To help these business leaders excel in their roles, the financial solutions experts at Kyriba provided a list of six major financial risks that CFOs face, and how they can meet those challenges.

Navigating Complex Regulatory Environment

Regulations are constantly in flux. Different governments and other regulatory bodies impose new roles affecting financial reporting, risk management, and more. Unfortunately, not all enterprises have their own strategic compliance teams, leaving CFOs responsible for ensuring they are compliant with any applicable regulations.

Organizations can turn to automated solutions to monitor new regulations, create strong internal controls, and provide accurate and timely financial data to meet reporting obligations. Access control is the most commonly adopted technology organizations use to meet GRC strategic priorities, as it can support both visibility and reduce the risk of fraud while also mitigating the potential risk of an audit.

Mitigating Fraud and Cybersecurity

More than half of all companies faced at least one payment fraud incident in the past 12 months, according to a Trustpair and Giact survey. As new technologies emerge, malicious actors will try to find ways to leverage them for nefarious purposes.

Though they may not be cybersecurity experts, CFOs are ultimately responsible for dealing with any financial damage that a company incurs from fraud or other cybersecurity incidents. Kyriba offers a cloud-based Saas platform with security features like protected login, data encryption, AI-powered fraud detection and more which can help prevent any malicious activity from breaching an organization’s SAP landscape.

Planning Around Economic Volatility

The global economy has been especially volatile since the pandemic, with inflation and a shifting geopolitical landscape. CFOs may feel like they are at the mercy of these forces, but adopting a robust risk management strategy can insulate organizations from uncertainty.

The most important component of any modern risk management strategy is data. Organizations must have centralized data for accurate liquidity planning. With real-time information, CFOs can quickly position their organizations as needed to maximize their position.

Withstanding Supply Chain Disruptions

Just as the global economy has been disrupted in recent years, so have global supply chains. CFOs must ensure that they minimize outstanding debts while receiving payments as quickly and seamlessly as possible. This can prove difficult with countless suppliers and vendors each facing their own unique challenges. Organizations can use working capital optimization tools, like those offered by Kyriba, to optimize cash returns and ensure a positive relationship with all vendors and buyers to mitigate any disruptions they face.

Harnessing Emerging Technology

Despite all of the challenges that they face, CFOs have new tools at their disposal to meet them. Perhaps the most talked-about emerging technology is artificial intelligence. Users can leverage AI to rapidly automate mundane and repetitive tasks, giving finance teams more time to do work that adds value to the organization.

Companies can also leverage machine learning to supercharge their data and analytics capabilities to discover patterns and unlock further insights.

Balancing Environmental, Social, Governance

Companies are no longer judged solely on their bottom line. Enterprises are now striving to become more environmentally and socially conscious while offering transparency into their governance strategies.

Yet organizations often struggle with their ESG programs because of a lack of investment, as well as difficulty measuring progress. One strategy to combat these issues is Kyriba’s supplier sustainability program. It gives CFOs access to ESG rating providers so they can ensure they use suppliers who are environmentally conscious.

Conclusion

The office of the CFO has seen an unparalleled expansion in its roles and responsibilities in recent years. Beyond just financial concerns, CFOs must also navigate ESG and GRC issues, mitigate fraud and other risks, and prepare for financial and supply chain disruptions. To keep pace with this mounting list, organizations should consider technology solutions like those provided by Kyriba to ensure compliance, security, and stability while meeting regulatory and ESG goals.