Value Creation! The CFO, COO and CRO working Together

Typically, the CFO role is outwards looking. Exchange rates, market, profit, growth, funding. He’s selling a story to the Shareholders and Stakeholders. But we also need to mention carbon foot print, corporate social responsibility and what a great company we are. Why is this important? Today, the value of a company is estimated in terms of non-tangibles. Only 20% is assets and capital based. This is a massive change compared to 10 years ago when it was exactly opposite. Operations, however, need to reduce costs though. Reduce working capital, keep the assets producing, don’t get in the news through issues of pollution, fires or quality problems. The COO role is more inwards facing. Assets are potentially old and in need of repair. Are they able to produce the products needed for the future? How to enhance performance? These two, potentially opposing goals, are typical examples of the day to day dilemmas many companies have. Generating growth through cost cutting. Using

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Insight not information! This is what the CEO needs from a Risk Manager.

Decision making, Opportunity management and Strategy! The role of all management. All are forward looking. All levels of management need to be aligned. So why are many risk managers still providing information, compliance data and backward facing risk analysis (risks associated with the current business environment rather than the future business world)? And why typically upwards reporting and not up, down and transversal guiding? I guess for many it’s because of business pressure today. Reduce costs, blend short- and long-term strategies and be effective and efficient. But I believe CEO´s and CFO´s need insight to create and manage opportunity. Backing a new business plan that will be obsolete tomorrow is not good. The points mentioned above are a positive consequence of this insight. Not driving it. Keeping it simple there are three steps to follow to leverage insight and create opportunity and ultimately value? Firstly: – there is a time axis to risk. This time axis has a direction. This

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