The new CFO: transformation, strategy and geopolitics

December 2025  |  COVER STORY | BOARDROOM INTELLIGENCE

Financier Worldwide Magazine

December 2025 Issue

Surviving and thriving in today’s ultra-competitive business environment requires companies to optimise a range of differentiators – operational, ethical, cultural and financial.

Under the leadership of a chief financial officer (CFO), optimisation of the finance function is particularly significant. The CFO role has expanded rapidly beyond its traditional remit of financial oversight to one akin to a strategic leader tasked with driving resilience, transformation and growth.

“The role of the CFO has evolved dramatically from historical financial gatekeeper to strategic value creator over the last decade,” concurs Sara Daw, group chief executive of The CFO Centre. “Today’s CFOs are expected to lead organisation-wide transformation, fuel growth and navigate perpetual geopolitical and economic volatility, all while maintaining financial compliance and discipline.”

Evidence of this evolution is persuasive. According to PwC’s 2025 ‘What’s Important to the CFO’ survey, 57 percent of CFOs are reshaping short-term strategies in response to economic policy shifts, while 58 percent are investing in new technologies to enhance forecasting and planning.

PwC notes that CFOs are not merely acknowledging change – they are acting on it. Sixty-five percent are adjusting financial forecasts and budgets, 61 percent are implementing cost reductions (excluding layoffs) and 54 percent are assessing tariff impacts.

Complementing PwC’s findings is Gartner’s ‘Top 5 Finance Trends and Priorities for CFOs in 2025’, which states that over 70 percent of CFOs now hold responsibilities beyond finance, including enterprise strategy, environmental, social and governance (ESG) leadership, and digital transformation.

“The expansion of CFO responsibilities includes broader input into commercial negotiations, greater oversight of human resources and people management, risk management and the strategic direction of an organisation,” adds Simon Heath, a corporate finance partner at the Heligan Group. “As the CFO role has developed, it is now much more aligned to that of a chief executive.”

Whether in the public or private sector, the CFO role is evolving. “While public sector CFOs prioritise resilience, compliance and service delivery, and their private sector counterparts focus on growth and profit, both arenas require CFOs with strong insight, adaptability and trust,” asserts Joanne Pitt, senior policy manager at the Chartered Institute of Public Finance and Accountancy (CIPFA).

This convergence of responsibilities across sectors highlights the universal nature of the CFO’s strategic influence. Regardless of industry, CFOs are increasingly expected to act as integrators – bridging financial performance with operational execution, and aligning fiscal discipline with innovation. Their ability to interpret complex data and translate it into actionable strategy is now central to organisational success.

Traits

As with any profession, certain traits greatly assist CFOs in fulfilling their responsibilities. Some may appear obvious, others less so, but harnessing them appropriately and effectively is essential.

“CFOs must lead with curiosity, collaboration and courage,” vouches Glyn Coy, business development director at FinanSys. “They also need to be proactive in anticipating changes, communicate transparently with stakeholders, and use financial insights to influence and drive change.”

FinanSys’s ‘The Traits of a Modern CFO’ highlights seven traits that it believes a modern CFO should ideally possess.

First, strong financial skills. CFOs must understand financial concepts, interpret data and act decisively. They must develop budgets, manage cash flow and ensure compliance with financial regulations. As a critical role within any business, the CFO must provide accurate financial information to support sound decision making.

Second, extensive knowledge of business operations. CFOs must identify opportunities and risks and develop strategies that support growth. Their remit now extends beyond financial operations to identifying business and investment opportunities that create value.

Third, strategic thinking. CFOs must think long term, identify challenges and opportunities, and devise creative solutions. They must communicate strategy effectively to the executive team and demonstrate how financials support broader business goals.

Fourth, strong leadership skills. As key members of the executive team, CFOs must lead and motivate. They must build relationships across the organisation and ensure alignment toward common goals, leading their own teams and collaborating with peers.

Fifth, excellent communication skills. CFOs must communicate effectively with diverse stakeholders and explain complex financial concepts in accessible terms. The ability to articulate strategy clearly is a vital asset.

Sixth, excellent foresight. CFOs must anticipate future challenges and opportunities and develop contingency plans. They must think creatively and act pre-emptively to mitigate risks.

Seventh, the ability to lead change. The modern CFO is a change leader – driving process automation and investing in financial technology. They must see the big picture and implement changes that improve the company’s performance.

“The breadth of the CFO role means it can touch any part of the business, and the CFO has the ability to positively influence and drive change enterprise wide,” says Ian Mullen, chief financial officer at Acuity Knowledge Partners. “Understanding the difference between ‘must have’ and ‘nice to have’ initiatives and the ability to say ‘no’ is important.”

In addition to these traits, emotional intelligence is becoming increasingly important. CFOs must navigate complex interpersonal dynamics, manage diverse teams, and foster a culture of trust and accountability. The ability to empathise, listen and respond thoughtfully is now a core leadership competency, especially in environments undergoing rapid change.

Priorities

In uncertain times, CFO priorities are numerous. Key areas of focus include enterprise growth, metrics and analytics – all set against the backdrop of an expanding role.

“Facing global tensions, economic volatility and new rules around artificial intelligence (AI), data protection and fraud prevention, CFOs are re-evaluating their approach,” says Kevin Grant, chief revenue officer, corporate solutions at Bottomline. “Across every industry and company, efficient cash management processes and fraud prevention remain top priorities – underpinning a business’s ability to run operations effectively and drive growth.”

According to Adele Carr Financial Recruitment’s report ‘Navigating the CFO Challenges: Insights and Strategies for Success’, today’s CFOs face a complex and evolving landscape shaped by several pressing challenges.

Economic uncertainty remains a dominant concern. Ongoing inflation, fluctuating interest rates and geopolitical instability continue to disrupt markets, requiring CFOs to craft resilient strategies that safeguard financial stability in unpredictable conditions.

ESG compliance and reporting have become central to investor and regulatory scrutiny. CFOs must ensure their organisations meet shifting disclosure requirements while integrating sustainability into financial planning.

Rapid technological advancement presents both promise and pressure. CFOs are expected to assess and implement innovations such as AI, blockchain and advanced analytics to enhance efficiency and maintain a competitive edge.

Digital transformation is no longer confined to IT departments. CFOs are pivotal in aligning financial resources with broader digital initiatives, ensuring these efforts deliver measurable value and support long-term strategic goals.

Talent retention and workforce evolution pose ongoing challenges, particularly in the context of hybrid and remote working models. CFOs must build agile teams equipped with the skills to navigate technological change and futureproof financial operations.

As financial systems become increasingly digitised, cyber security and data protection are critical. CFOs play a key role in safeguarding digital infrastructure and ensuring compliance with data governance standards.

Global tax reform, including initiatives like the Organisation for Economic Co-operation and Development’s base erosion and profit shifting framework, demands proactive compliance and strategic adaptation to mitigate financial risk.

Balancing cost control with growth ambitions is a constant tension. CFOs must drive operational efficiency while identifying and investing in opportunities that support sustainable expansion.

Investor expectations continue to rise, with demands for greater transparency and faster access to financial insights. CFOs must deliver real-time reporting and actionable data that inform strategic decision making.

Finally, the CFO’s role is expanding beyond finance. Increasingly, they are expected to engage with stakeholders across the organisation, requiring strong communication skills and the ability to align financial strategy with broader business objectives.

“CFOs must embed resilience into planning, drive finance transformation and align financial strategy with long-term value creation,” adds Ms Daw. “The CFO is not just part of the crew anymore. They are now the co-pilot, sat in the cockpit with the chief executive. A strategic adviser, digital innovator and societal steward – and all at once.”

As CFOs take on more strategic responsibilities, their ability to prioritise becomes paramount. The sheer volume of competing demands requires a disciplined approach to time management and decision making. CFOs must be able to distinguish between urgent operational issues and long-term strategic imperatives, ensuring that neither is neglected.

Challenges

The challenges facing CFOs – both inside and outside the finance function – are complex and overarching, demanding a resilient, transformative and growth-oriented mindset.

Internally, CFOs may contend with outdated legacy systems, talent gaps, burnout, cross-functional misalignment and fragmented data. Externally, they face geopolitical uncertainty, inflationary pressures, supply chain disruptions, economic volatility and increased stakeholder scrutiny.

“CFOs in the public sector must combine technical expertise with political awareness and integrity,” says Ms Pitt. “Their advice should remain independent and evidence-based, ensuring decisions stand up to scrutiny in council chambers or parliamentary committees, not just boardrooms. Also, the demand for resilience and transformation requires CFOs to make difficult choices to balance short-term financial pressures with long-term sustainability.”

Among these choices, notes Mr Coy, is the need to move beyond static, historical data. “They now must incorporate dynamic scenario planning and predictive analytics into their activities, forcing them to balance immediate operational needs with investments in long-term strategic initiatives,” he explains. “This multifaceted approach calls for a more agile and forward-thinking mindset, underpinned by a technology and data-first approach.”

Additional challenges include the paradox of reducing cost and risk while simultaneously funding innovation and growth. “The overlapping demands for resilience, transformation and expansion add further layers of complexity to planning,” affirms Ms Daw. “This is about more than financial modelling. It is about orchestrating cross-functional collaboration, navigating regulatory flux and anticipating geopolitical shifts.”

However, in the view of Mr Mullen, it is the triple demand for resilience, transformation and growth that places the greatest pressure on CFO planning activities. “All three demands are adding complexity,” he suggests. “Business transformation requires significant planning, senior and middle management buy-in and effective execution. Invariably, an element of cultural transformation is also required.”

The cultural dimension of transformation is often underestimated. CFOs must help foster a mindset of adaptability and innovation across the organisation. This includes challenging entrenched practices, encouraging experimentation and supporting teams through periods of uncertainty. The CFO’s influence on organisational culture is increasingly recognised as a key driver of successful change.

Evolving dynamics

Today’s CFO operates in a diverse and complex world requiring agility, innovation and strategic foresight. By addressing key issues head-on, CFOs can position themselves for sustained success.

“CFOs need to evolve into sharper risk managers and tech-savvy strategists,” suggests Mr Grant. “A CFO is on the frontline of money moving in and out of the business every day, which means being constantly aware of where the business is vulnerable.

“As economic uncertainty grows and threats increase, CFOs will need to lean on technology for better efficiency and security,” he continues. “Unlike humans, technology does not miss patterns and provides CFOs with process consistency, alerts and the control needed to protect and grow a business.”

Technology is having a profound impact on the finance function. It lies at the heart of financial transformation, with cloud-native platforms, composable applications, hyperautomation and decision intelligence now available for CFOs to deploy.

“CFOs need to ensure that they are open to a fast-moving technology stack and make informed decisions,” says Mr Heath. “They need to demonstrate rigour in their approach to setting and delivering long-term objectives and technology needs to be central to that – almost forcing boards to acknowledge the importance of setting a clear vision and business plan to deliver growth.”

Technology solutions are increasingly used to support day-to-day finance activities, including financial planning and analysis, core finance, financial close, contract and document management, materials management, and vendor management.

“Technology is a key enabler,” summarises Mr Coy. “Automated and autonomous processes streamline back-office tasks, freeing up capacity for strategic work. AI and advanced business intelligence enhance forecasting, identify hidden risks and support data-driven decisions.”

As digital tools become more sophisticated, CFOs must also become more discerning in their adoption. Not every innovation will suit every organisation. The ability to evaluate technological solutions through a strategic lens – considering scalability, integration and long-term value – is now a vital skill. CFOs must act as both champions and gatekeepers of digital transformation.

Charting the CFO’s future course

Increasingly judged on their ability to drive change and deliver viable outcomes, the evolving CFO is consolidating their position among an organisation’s key decision makers – respecting the traditional while embracing the transitional.

“CFOs need to work on themselves to upgrade their own operating systems,” says Ms Daw. “The more they can be comfortable in the uncomfortableness of imperfect data, working in the grey zone, and balancing better or worse outcomes rather than right or wrong answers, the better.”

Ultimately, CFOs must lead with a proactive mindset, driving innovation and shaping the future direction of their organisation, rather than simply reacting to events.

“The future CFO must be a master of both financial and non-financial data, integrating a range of metrics into strategic planning,” says Mr Coy. “Most importantly, they should communicate transparently with stakeholders, using financial insights to influence and drive change – leading with curiosity, collaboration and courage.”

As the CFO role continues to expand, so too does its potential to shape the future of organisations in profound ways. Today’s CFO is a catalyst for innovation, a steward of purpose and a guardian of agility. Their decisions ripple across departments, influencing culture competitiveness and long-term viability.

In this era of relentless disruption, the CFO’s ability to balance precision with vision is what sets exceptional leaders apart. Those who embrace the complexity of their evolving remit – while staying grounded in financial discipline – will not only survive the turbulence but help their organisations soar above it.

© Financier Worldwide

BY

Fraser Tennant