CFO

Definition

A CFO (Chief Financial Officer) is a senior executive responsible for managing the financial actions of a company. Their duties include tracking cash flow, analyzing strengths/weaknesses in the company's finances, and overseeing financial planning and reporting.

5 Must Know Facts For Your Next Test

1. The CFO reports directly to the CEO and often plays a key role in strategic planning.
2. CFOs are responsible for risk management and ensuring regulatory compliance.
3. They collaborate with other departments to set budgets and allocate resources efficiently.
4. CFOs must have strong analytical skills and a deep understanding of financial markets.
5. In many companies, the CFO also oversees IT and operations related to financial data.

Review Questions

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

Related terms

CEO: The Chief Executive Officer, who is responsible for the overall management and direction of the company.

Controller: An officer responsible for overseeing accounting functions and ensuring accurate financial records.

Treasurer: An officer responsible for managing the company's treasury activities, including cash management, investments, and financing.