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Florida CFO Group
(877) 352-2367ASK A CFO
Florida CF Group
(877) 352-2367ASK A CFO

Category: Partner Spotlight

November 11, 2023

Executing a successful risk management program for an organization is a collaborative effort that necessitates the commitment of the entire organization, particularly the C-suite. While the CEO holds ultimate accountability for the assessment of risk, it is the Chief Financial Officer (CFO), who pulls it all together. This article delves into the multifaceted responsibilities of the CFO during a risk management assessment, where they often take on roles such as Communicator, Conductor, and Collaborator.

Numbers and Narratives:

The CFO's involvement in risk management extends beyond traditional financial responsibilities. While overseeing financials and operations is paramount, the CFO also takes on aspects of a Chief Risk Officer (CRO). The CFO aids the CEO in telling the organization's story to various stakeholders, ensuring alignment between narrative and financial metrics, such as EBITDA and cash generation.

Conducting the Orchestra:

Functioning as a conductor, the CFO manages the financial implications of different operational workstreams, providing the CEO with the necessary data to present a compelling narrative. The CFO anticipates potential financial, reputational, and operational risks. This proactive approach allows for the identification of risks in advance, enabling the implementation of mitigation measures to ensure the assessment of risk is successful and produced. The CFO, like a Conductor of an Orchestra, pulls in special effects like Legal, IT, Insurance, and other outside advisors, as deemed necessary. 

Navigating Complex Risks:

Today's risks are intricate and competitive, requiring CFOs to leverage various tools and strategies. Private equity owners demand quicker and more substantial returns. The CFO must explore every avenue, addressing multiple levers to unlock the full potential and identify and quickly mitigate risks.

Stakeholder Management:

Effective stakeholder management requires subtlety. The CFO must comprehend internal dynamics without impeding functional leaders while strategically communicating externally. While financial acumen is essential, a well-rounded CFO embraces a 'jack-of-all-trades' mindset, emphasizing communication, collaboration, and team building.

Conclusion: Support through Challenge, Collaboration, and Communication:

The CFO's role related to risk management extends well beyond assessing the balance sheet and income statement. Ultimately, the CFO contributes significantly to delivering financial results, however, a major benefit that the CFO provides behind the scenes is the assessment and mitigation of risk to the organization.  A value for all stakeholders.

The Authors

Tim Journy is a Partner at the Florida CFO Group and a seasoned professional, with a proven track record of implementing best practices, enhancing internal controls, and driving financial success across diverse industries. Tim has significant experience in the financial and risk management areas having served as Chief Financial Officer for multiple companies, including General Auditor for a Fortune 50 international organization and Audit Partner for a Big 4 firm.   

Don Noble, a distinguished Partner at the Florida CFO Group and a technology expert, boasts an extensive background in financial leadership and advisory roles. Leveraging his wealth of experience, he collaborates with businesses to optimize their financial and technological strategies, fostering growth and resilience in the dynamic marketplace.

Contact Us

If you have any questions or would like to have a discussion in your organization’s risk assessment, please give the Florida CFO Group a call. We are here to help you navigate your financial challenges and achieve success.

July 2022: Deane Baron

Deane Baron has more than 20 years of financial leadership experience, including both domestic and international businesses. He has developed meaningful profitability measures and reported for business leaders to keep attention on the bottom line. For over eight years as the vice president of finance in a software business, he enabled growth from $10M to $400M in revenue. As CFO, he led the turnaround from a $20M loss to break even by emphasizing sales and manufacturing.

Deane has raised capital for venture capital-backed, private equity-backed, and public markets companies. He has secured additional rounds of venture capital and venture debt. Under private equity ownership, he delivered on the first-year business commitments for the integration of three merged companies, which enabled the renegotiation of a $500M debt on favorable terms. In the public markets, he communicated with the SEC in completing an IPO and follow-on equity raise. He also raised capital from export credit agencies and banks for his Latin American customers.

He developed M&A and due diligence expertise in multiple transactions, including leading the sale of a $350M business segment from a public company to a private equity firm. He has also completed acquisitions for product and regional expansions.

Deane earned an MBA from the Harvard Business School, and an engineering degree from the University of Waterloo in Canada. He was previously certified as a Certified Management Accountant (CMA) in Canada.

Visit Deane's Partner Page
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