Chief financial officer (CFO)

Definition

The Chief Financial Officer (CFO) is a senior executive responsible for managing the financial actions of a company. This role involves financial planning, risk management, and ensuring accurate financial reporting.

5 Must Know Facts For Your Next Test

1. The CFO oversees the preparation of all financial statements.
2. A CFO plays a crucial role in strategic planning and corporate governance.
3. CFOs often coordinate with other executives to align financial goals with business objectives.
4. Risk management, including assessing and mitigating financial risks, falls under the CFO's responsibilities.
5. Effective communication skills are essential for a CFO to present financial insights to stakeholders.

Review Questions

• What are the primary responsibilities of a CFO?
• How does the CFO contribute to strategic planning within an organization?
• Why is risk management important in the role of a CFO?

Related terms

Controller: The controller manages day-to-day accounting operations and ensures compliance with accounting standards.

Treasurer: The treasurer is responsible for managing the company's cash flow, investments, and financing activities.

Chief Executive Officer (CEO): The CEO is the highest-ranking executive who makes major corporate decisions and oversees overall operations.