Finance and Management, scalable functions within companies

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The financial executive is a key player in the company. His overall knowledge of the organization makes him an irreplaceable player from the point of view of human capital. This ensures that an organization is healthy. Their economic weight at the national level is considerable. The sector as a whole comprises 1,700 companies that alone synthesize one third of France’s GDP. The New Aquitaine territory, which benefits from a diversified economy and specialized in sectors of excellence, demonstrates not only expertise in the insurance, digital image but also finance professions. To this end, on November 28, the National Association of CfOs and Management Control is organizing the 16th edition of the New Aquitaine Finance and Management Trophy.

Recognition needed

Although fundamental to the operation of the company, the Finance and Management function is often little known to the general public. Its austere image does not prevent it from understanding that without it, any business would not be able to function. Highlighting these businesses that contribute to the success of the company is one of the objectives of the New Aquitaine Finance and Management Trophy. Organized by the Network of CfOs and Management Control (DFCG), the Finance and Management Trophy recognizes the top three professionals in the financial sector in New Aquitaine. In the context of a poor image due to a particularly strong lack of exemplarity following the 2008 financial crisis, this event is central. The Network of CfOs and Management Control (DFCG) is a true historical player in the national economic fabric since it was created in 1964. It now includes more than 3,200 private and public corporate finance professionals. The Finance and Management Trophy is organized in each region where the network of CFOs and Management Control acts. The Finance and Management Awards highlight the financial function and its steering tools as a pillar of innovation.

Corporate financiers at the U.S. Business Management

The Finance and Management function operates at the heart of companies from three main levers. On the financial front, since the finance function ensures the proper management of financial flows. Indeed, better financial flows mean better results. In addition, decision-making is facilitated by better cost optimization and the objective of economic profitability. On the commercial side then since management accounting provides information on the profitability of commercial projects. Finally, the finance and management function also acts strategically. According to a study by the consulting firm PWC entitled “Priority 2018 of the CFO”, 73% say that performance management is one of their short- and long-term priorities. Indeed, an appropriate financial policy more easily attracts the capital necessary for the strategic development of the company. According to a study conducted by the Association of CFOs with their financial officers, banks increasingly have a requirement with regard to their banks and their bank advisors that make them well. Indeed, companies give their banks a good score of 7 out of 10. Post-economic crisis confidence therefore appears to have been restored. The links between banks and businesses are fundamentally based on trust. Confidence at half-mast can have repercussions for the company’s business. They are the ones who provide information on a company’s financial situation vis-à-vis its external partners. At the macroeconomic level, mutual trust between these two sectors ensures the country’s economic health.

With the necessary transparency of financial information, the digitalization of the financial service is accelerating. Indeed, with the digital transformation, the scope of the activities of CFOs is expanded. They have now entrusted them with IT-related responsibilities. Even in their usual responsibilities, new technologies can add value to their business, for example by increasing speed in payment times.

Corporate financiers are transforming the regional economy on a daily basis. They act in risk management for trading partners. Corporate financiers orchestrate a cross-cutting collaboration within companies between each business of the organization. Therefore, they cannot be reduced to a single numerical and financial approach. The digital transformation thus poses a major challenge for financial executives, that of capturing the company’s data. Finally, corporate financiers are an important issue at the regional level as the regions support companies financially and strategically. According to Bpi France, 95% of funding files are thus taken in the regions. Within companies, corporate financiers therefore embody new business partners, concerned about the added value they bring to the company.

Justine ANGIBAUD

Sources:

Bank of France website

French Banking Federation website

Study by the consulting firm PWC “Priority 2018 of the CFO”

Website of the National Association of CFOs and Management Control

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