The role of the Chief Financial Officer (CFO) in Europe has evolved significantly, with modern CFOs now tasked with driving strategic initiatives and managing risks amid a complex geopolitical landscape. A recent Deloitte survey of 1,300 European CFOs reveals that 90% of respondents are confident in their capacity to effect positive change within their organizations. Nearly three-quarters report an increase in influence with their company boards, with many taking on expanded responsibilities in areas such as environmental, social, and governance initiatives, risk management, and digital transformation. Despite this empowerment, CFOs express concerns about rising geopolitical threats, particularly since the COVID-19 pandemic and the ongoing conflict in Ukraine.
Almost all CFOs surveyed anticipate the impact of geopolitics on their businesses, with 90% monitoring political and economic developments closely. However, only 27% have implemented contingency plans for specific geopolitical risks. Key areas of concern include cybercrime, inflation, and geopolitical tensions, such as populism and protectionism in global trade. As a result, CFOs are increasingly diversifying operations across regions to mitigate vulnerabilities. This proactive approach underscores the crucial role CFOs play in ensuring business resilience and competitiveness in a rapidly changing global environment.
