Amidst rapid changes in the business environment, such as the global financial crisis and the COVID-19 pandemic, companies are continually adapting their financial functions and roles to ensure survival and growth.

• Traditional financial management focused on formulating management plans based on accounting and cost analysis and supporting investment management.

• Global companies actively assign functions to financial organizations that ‘support the growth of business units’ to secure continuity across the 'past-present-future' business.

According to recent PwC Global Survey results, companies are emphasizing the role of financial organizations as partners in business decision-making and investing significant resources and time.

• Many advanced companies set the role and scale of financial organizations as advisors supporting strategic decision-making within the company, utilizing them as partners in determining business direction alongside business units.

• Nestlé is operating its financial organization as a 'Co-Pilot,' Intel as a 'Full Partner,' Cisco as a 'Catalyst for Business Transformation,' and IBM as a 'Trusted Business Advisor.'

For Chief Financial Officers (CFOs), the role of a 'Key Decision Maker' with expertise and strategic judgment is emphasized to adapt to changes and secure business continuity.

• Since the introduction of the CFO position in Korea in the 1990s, they have been required to take roles of ensuring financial stability, improving accounting validity, and enhancing governance transparency. However, after the global financial crisis, their roles expanded to analyzing/predicting business performance and reviewing risk and investment viability.

• In response to recent rapid environmental changes, CFOs take on a strategic role in enhancing corporate viability and business sustainability by securing cash and raising funds.

The main role of CFOs with financial expertise and strategic judgment in response to changes of the era can be summarized in the following five points:

• 1. Strengthen Core Financial Capacity: Ensuring financial soundness, performance analysis/budget management and strengthening legal/regulatory foundations;

• 2. Strategic Review/Direction Setting: Identifying opportunities and risks, setting corporate value goals related to a portfolio;

• 3. Non-Financial Goals/Performance: Setting mid-to-long-term ESG goals, improving trust of customers and stakeholders by creating performance;

• 4. Disclosure of Corporate Vision/Values: Presenting a phased roadmap/execution strategy for setting directions and achieving goals;

• 5. Addressing Social Issues: Keeping awareness of social issues at home and abroad and proactively communicating on responses to such social issues.

CFOs, as 'value integrators,' need insight to reassess the role and function, required capabilities, and workforce size of financial organizations, leading the organization and its members on the right path while adapting to uncertainty and presenting future growth directions.