Invest to build financial resilience and reduce risk
Amid intensifying market disruptions and escalating business volatility, there’s more pressure on Chief Financial Officers (CFOs) and Chief Risk Officers (CROs) to balance multiple interconnected transformations while sustaining company performance, profitability and safety.
The architects of change
CFOs are in a unique position to access insights across the business and accelerate the transformations that align with the highest priorities. Risk leaders are the critical partner to ensure resilience and safety through these rapid changes. Together, they continue running core business functions while leading the business forward.
Reinvent with finance and risk management
Win with a data-driven operating model
This journey begins with building a digital core that draws on data, technology, and talent. Determining the right mix of people and applications is key to implementing a data-driven operating model that delivers.
reduction in operating costs can be achieved by implementing a data-driven operating model
Make finance more predictive and proactive
A data-driven operating model can reduce time forming insights by up to 30% and deliver real-time business performance analysis.
Improve liquidity management
Additionally, it can increase cash collection by up to 30%, improve cash and capital forecasting by 85-95% and raise cash in bank by up to 95%.
Increase operational efficiency
See a 50-60% increase in operational efficiency, a 45-50% reduction in operating costs and 30-40% savings from an improved reporting system.
Mitigate risk and improve compliance
Touchless processing can help drive a 50-60% increase in efficiency, while an improved reporting system can help deliver up to 40% in savings.
Create an agile operating model
Increase cross-worldwide business unit collaboration, while simplifying processes and harmonizing service.
Leveraging “out-of-the-box" cloud capabilities can increase automation and integrate data and ERP on the cloud for powerful analytics.
of CFOs have the final say on the technology direction of their organization
Provide a single “source of truth”
Transforming your finance platform can result in a single repository of clean and current data that's fully integrated. This data allows finance and other functions across your organization to unlock and share powerful and actionable insights.
Simplify the technology landscape
The simpler the landscape and greater the use of “out-of-the-box" capabilities, the greater the opportunity to grow your business at a lower cost. For example, reducing the number of applications frees up resources to focus on innovation activities.
Build a foundation that enables evolution
A solid ERP foundation can enable future initiatives, such as advanced reporting and analytics, intelligent automation and an insight-driven culture.
Activate new ways of working
Use the power of humans and data science to transform decision-making and ways of working across the organization.
Cloud-enabled EPM paves the path to advanced analytics
Today’s decision support capabilities require new technology and collaboration tools. An end-to-end modeling capability that emphasizes scenario planning and aligns to company metrics is key.
of CFOs agree organizations are basing their most critical systems and strategies on data, yet many haven’t invested in capabilities to build quality data
Improve forecast accuracy
Implementing a modern, integrated EPM system will allow your team to have real time visibility of financial performance and improve forecast accuracy.
Reduce cycle time
Integrated and agile planning capabilities reduce cycle time and enable scenario planning to stress test specific situations and challenges.
Harness the power of data, AI, and technology
Modernize your risk function, driving superior data insights and optimizing controls to meet regulatory, business and operational demands.
of risk leaders agree or strongly agree that new technologies like AI make compliance easier, more effective and efficient
Strengthen your risk management
Through automation, streamlining of data and implementation of exception-based risk management, you can reduce the cost of core risk management processes by up to 50%.
Efficient AML/KYC investigation
Using automation and analytics, you can reduce anti-money laundering (AML) alerts by 25-40% and know your customer (KYC) reviews by 15-35%.
Effective regulatory compliance and remediation
Achieve a 95-98% quality rating across deliveries by implementing a quality control framework. Through AI-driven remediation, deliver 50-70% in cost savings.
Optimize risk-adjusted business performance
This can lead to a 20% improvement in revenue and risk adjustment performance management, unlocking new capital efficiency use cases. See a fast and efficient flow of risk insight to business divisions, along with an enhanced ability to identify and mitigate control issues and risk appetite breaches.
Safeguard business growth and expansion
Begin with establishing controls for financial product innovation (e.g., payments) and regulatory advisory for market expansion. In addition, proactively identify risks and opportunities in the interconnected business model.
What you measure shapes what you do
The time has come to devote the same resources and attention given to financials to ESG measurement. It all starts with blending financial and nonfinancial goals via a data-led performance management capability.
of finance leaders agreed they have clear, reliable data to underpin their ESG KPIs
Risk mitigation and cost avoidance
Preventing fines and penalties (e.g., climate taxes) and avoiding the loss of business due to the impact of your ESG metrics are just two of the benefits of implementing a data-driven approach to sustainability measurement, analytics and performance reporting.
Compliance and control
Meet consistent compliance with regulatory standards, and draw on data which is more reliable for reporting and decision-making.
Optimization of financing
Improved sustainability ratings can reduce the cost of debt. What’s more, you can gain access to beneficial lending rates, subsidies and tax breaks. And lastly, improve your chances of being included in a large ESG fund.
Cost reduction and operational efficiency
When you reduce water, energy and fuel usage—along with raw materials and waste—you can see increased efficiency and less maintenance and transportation costs.
Revenue growth and pricing power
Eco-friendly products can improve customer loyalty. They can also offer entry to new customer segments, new geographical markets and create the opportunity to leverage premium pricing models for innovative products.
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