From Uncertainty to Opportunity: Five ways CFOs can drive growth and profitability

Techday NZ

a day ago

In today's volatile economic climate—where persistent inflation, talent shortages, geopolitical instability, and market unpredictability collide—finance leaders are now called upon to drive long-term strategy, guide investments, and shape operational resilience.
Those who step up to this challenge are redefining the role of the CFO, positioning themselves not just as financial watchdogs, but as growth architects and innovation catalysts. The following five imperatives represent core focus areas for CFOs determined to thrive in an era defined by uncertainty.
1. Harness AI for Strategic Advantage
Artificial Intelligence has graduated from buzzword to boardroom imperative. Finance leaders are increasingly experimenting with AI applications that go beyond automation to offer meaningful decision support and insights.
AI is already proving its value by automating account reconciliations and transaction matching, enhancing variance analysis through real-time anomaly detection, generating seeded forecasts based on historical trends, and identifying risk patterns in compliance and financial reporting. These functions reduce human effort and errors while speeding up processes that were traditionally manual and time-consuming.
As AI capabilities evolve, so too must the skill set of finance teams. Professionals are expected to bring creativity and storytelling to data, contextualize AI-generated insights for business relevance, and lead conversations about ethical technology use and data governance. AI won't replace sound financial judgment—it will augment and accelerate it. The CFOs who embrace AI as a strategic ally, rather than a mere cost-cutting tool, will outpace those who hesitate.
2. Refine Forecasting to Navigate Volatility
Effective forecasting is no longer a luxury—it's a necessity. Static, annual planning models are increasingly inadequate in a world where global shocks can reverberate through supply chains, labor markets, and consumer demand in a matter of days.
Forward-thinking CFOs are embracing continuous forecasting, powered by real-time data and scenario planning. These models empower leadership to simulate outcomes of strategic decisions, such as acquisitions, pricing shifts, or supplier changes, and respond dynamically as conditions evolve.
This shift requires organizations to integrate real-time financial and operational data across departments, improve the frequency and granularity of forecasts, and adopt predictive algorithms that reduce bias while improving precision. When forecasting is democratized and embedded into operational processes, the organization becomes more agile, more responsive—and more profitable.
3. Become a Cross-Functional Influencer
Today's CFOs must think beyond siloed processes and act as integrators, ensuring that all business functions—from HR and sales to supply chain and marketing—are aligned around shared goals and credible data.
In workforce planning, for instance, finance can work closely with HR to ensure headcount projections match budget constraints and strategic priorities. This integrated approach helps build a workforce strategy that is both financially sound and operationally effective. In sales, finance can evaluate compensation structures to ensure they incentivize profitable behaviors rather than just top-line growth. In operations and supply chain, CFOs can play a key role in modeling the cost-benefit trade-offs of decisions such as diversifying suppliers or bringing production in-house.
By connecting data across silos and providing strategic insights that influence decisions across the business, CFOs amplify their influence and gain a deeper understanding of how financial strategies impact customer satisfaction, product innovation, and overall business resilience.
4. Sharpen M&A Execution and Integration
While overall deal volumes have cooled, opportunities abound for strategic buyers—especially those with robust finance capabilities. Smaller, more targeted acquisitions are rising in prominence as companies seek to expand their capabilities, access new markets, or achieve operational synergies.
Finance leaders play a critical role in both the evaluation and integration phases of a deal. During diligence, CFOs assess strategic alignment, financial viability, and risk exposure. They must model scenarios, vet assumptions, and ensure the deal supports long-term objectives. Equally important is the integration phase, where CFOs lead the charge in aligning financial systems, harmonizing operations, and tracking synergies.
A successful integration often hinges on the finance team's ability to monitor progress against KPIs such as revenue growth, margin expansion, cost savings, and customer retention. By focusing on the metrics that matter most—especially those that drive earnings, cash flow, and investor confidence—CFOs help ensure that M&A activity translates into shareholder value rather than post-deal turbulence.
5. Balance Risk Mitigation with Growth Ambition From cyber threats and inflation to regulatory shifts and supply chain fragility, today's risk landscape is broader and faster-moving than ever. Yet, moving with excessive caution can paralyze innovation. At the same time, unchecked risk-taking can lead to costly missteps.
In this environment, CFOs must embed risk management into the strategic planning process from the outset. This includes implementing automated, real-time cash forecasts to detect potential liquidity issues early; establishing key risk indicators tied to financial objectives; and evaluating strategic initiatives through the lens of risk tolerance before they're fully baked.
Enterprise risk management systems enable organizations to monitor risk exposure with greater precision, streamline compliance efforts, and improve audit readiness—all while reducing manual overhead. When risk mitigation becomes proactive and data-driven, CFOs can confidently pursue new opportunities without compromising stability.
Technology also plays a vital role in enabling CFOs to embrace these imperatives. From consolidation of systems and eliminate data silos to predictive, generative, and agentic AI embedded in workflows that enables predictive insights, touchless processes, and connected actions. CFOs who don't embrace continuous innovation, integrated systems, and a single data model will add addition cost, complexity, and risk, and fail to capitalize on promise of AI-driven finance. Those who meet the moment and make smart technology moves will not only increase productivity reduce costs, and improve controls, they will redefine the finance function in the modern enterprise.