For those who are in the world of finance, they might find that the old rules that they lived and worked by do not apply anymore. It is being seen that, those who are clinging onto technologies that are old and strategies that are traditional are unable to stop more efficient competitors from moving ahead.
CFOs of companies
For the chief financial officers there is much change to note. The daily responsibilities of a corporate office that consisted of reports, taxes and compliance are being looked at from a more strategic point of view. If you interview the CEOs of the company, whether the CFOs have evolved in their financial, strategic thinking with the times, they might answer in the negative. This is as per a study finding that was conducted by KPMG and Forbes Insights in 2014.
Private sector in a state of flux
This kind of a mindset might reduce the financial competence of the firms and prevent them from taking advantage of the opportunities that open up. The global economy is in a state of change and hence, the financial leaders need to do more than simply open up to the increasing responsibilities and change in strategic thinking. If the indices are checked, from the year 2010 to 2015, the US has lost out about forty companies including GE Finance which were listed on the index. In case of China the count is almost double, hovering around a figure of 98 where the top 12 companies are owned by the state. China is the largest economy; this trend should raise concerns among finance leaders.
Most of the Western world is viewing China’s success in a suspicious manner due to the collapse that it has suffered in recent times. Indeed, it is difficult to analyze the economic scene of China as it does not have an economic development like the Western countries. Today, with the collapse of the China’s forex many experts are criticizing several aspects of the country and what could have gone wrong. While many are stating that structural reforms were overlooked and demand was driven up more than investment flow from 2013, it might not be completely true. However, it remains to be seen what exactly brought about the collapse that sent the global economy on a slowdown mode as well.
An upcoming financial forum
These are signs of changes and issues that are developing on the global front which have repercussions on the countries as well. Oracle is holding a comprehensive session on 28th and 29th October this year at San Francisco, which would be the perfect forum to discuss these issues and strategies for the way forward. There would be foremost finance and business experts from all over the world to participate and discuss pertinent issues at this conference. In this global state of change, it is imperative that financial leaders understand where the opportunities lie and how to make the most of it.