CFO Insights Newsletter translation
CFO Insights Newsletter
"The impacts of 2020 will continue to shape our future, both personally and professionally. For instance, ESG aspects are becoming a necessary component for all organizations, and mitigating ESG risks and maximizing ESG integration will be crucial for a company’s success. Additionally, CFOs need to consider how their organizations are thinking about and executing transactions, ensuring they are maximizing value and avoiding common, yet predictable, pitfalls. Whether for a transaction or day-to-day, CFOs will need to focus on intangible assets that are at the heart of every organization – people and culture."
– David Haufler, Managing Director
Philosophies, standards and approaches around environmental, social and governance, or ESG, are among the most talked-about issues in corporate circles today, with the world’s largest companies and investors taking notable stands for the long-term betterment of society.
In this episode of Protiviti’s Powerful Insights podcast series, Protiviti Senior Managing Director Bob Hirth and Managing Director Chris Wright share their thoughts and insights about a number of ESG-related matters, particularly as they pertain to perspectives from boards of directors and executive management.
According to Harvard Business Review research, 70-90% of M&A deals fail. Poor planning and execution at all stages of the deal (the deal zone, transaction zone and post-close zone) contribute significantly to this high failure rate. Further, Protiviti research has shown that the most common mistakes an organization can make during a transaction include improper planning, poor due diligence, lack of information security, inflated expectations, lack of focus during the integration process, transparency issues and poor communication, to only name a few. A robust integration plan addresses these key risk areas and offers dealmakers the greatest opportunity for success. We discuss best practices that will improve the chances of a successful transaction, from setting the pre-deal stage with the right participants to managing post-close activities.
CFOs' expanding contributions to fortifying organizational data security, the highest priority identified in Protiviti's latest Global Finance Trends Survey, play a pivotal role in satisfying their CEOs' expectations. Board members demand coherent, relevant and timely updates from their organizations' CIOs and CISOs on the state of data security and privacy capabilities, as well as clear insights from CFOS on cybersecurity investments: Are we protected? Are we spending enough? Are we investing wisely? How do we know?
Which assets will power your business going forward?
Arguably, the most leverageable assets are the intangible assets, which, by definition, have not been quantified. When one company purchases another for a value greater than its assets minus its liabilities, that difference is reflected as goodwill on the balance sheet. Why does a company do that? Often, the excess purchase price is attributed to what’s referred to as brand equity.
Forbes CFO Network article by Protiviti's Jim DeLoach
Protiviti's Managing Director Jim DeLoach has contributed several articles to the Forbes CFO Network in the past year. This latest one focuses on why CFOs need to get comfortable with data analytics.
Data analytics have long been employed by CFOs and finance organizations to help manage familiar finance and accounting activities. But digital transformation and changing markets, together with rising expectations from boards and executive management, call for new approaches focused on more advanced data analytics. And because these approaches may involve CFOs and their finance teams breaking new ground on the data analytics front, it’s also time for them to become comfortable being uncomfortable.
Protiviti and NC State University’s ERM Initiative are pleased to provide this report focusing on the top risks currently on the minds of global boards of directors and executives. This report contains results from our ninth annual risk survey of directors and executives worldwide to obtain their views on the extent to which a broad collection of risks is likely to affect their organizations over the next year – 2021. Also, for the first time, this year we asked respondents to consider how these risks will affect their organizations a decade from now (in 2030).