Role of the Chief Financial Officer

Riordan & Associates and

Chung & Associates

Liennette Chung, CPA

• UCLA -1994• PwC, Los Angeles & Hong Kong

• Credit Suisse, Asia Pacific

• Renaissance Investments, SE Asia

• Global Imaging / Xerox• Chung and Associates

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Chief Financial Office• What is a Chief Financial Office• CFOs in Public and Private Sector • Role of the:

– Chief Financial Office– VP of Finance– Director of Finance

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Definition of CFOSenior most-executive responsible for managing the financial risks of the corporation. This officer is responsible for financial planning, regulatory compliance, credit controls, record-keeping, and financial reporting to higher management. In addition, many CFOs also oversee operations, proper controls and strategy.

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The CFO• Full authority in to make decisions in the best interest

of the company• Highly intelligent and influential• Holds a higher degree such as an MBA or CPA• Understands all aspects of the business and industry

at both the micro and macro level• Uncompromising morals and ethics

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A Few of our Current CFOs

Kathryn Mikells

CFO for XeroxLuca Maestri

CFO for Apple

Richard Galanti

CFO for Costco

Bob Shanks

CFO for Ford

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Ruth Porat

CFO for Morgan Stanley

CFO of the Public Sector• Fiduciary Responsibilities to the Corp• Accountable for proper conduct and

operations of the company– Held personally and professionally for the

Company’s wrongdoing

• Frequently the second man from the top• Reports to the CEO and BOD

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CFO Reports to the CEO & BOD

Board of Directors

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CFO

CEO

Check and Balance

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CFO in the Private Sector

Board of Directors

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CFO

CEO

• President is the BOD, Stakeholder and owner

• Reports to a single body who holds absolute control

• Responsibilities can extend into personal boundaries such as loyalty, health and well being

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Office Tech Dealership

• What is the role of Head of Admin• Who is this individual(s); CFO or COO or Ops

Manager?• What’s the difference between a CFO, VP of

Finance, Dr of Finance and Controller?• At what point do you need a CFO, if at all?

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Sales

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Admin

Service

President

Controller

• Day-to-day accounts payable, HR, admin, receivable and cash management

• Safeguarding of assets through timely & accurate reporting and budgeting

• Skills focused within accounting and admin• Prefer responsibilities to not extend other

disciplines

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Director of Finance

• Responsible for the overall finance and accounting function (all that’s included in the Controller’s role)

• Takes direction from the CEO or CFO to effectively manage the finance discipline

• Supportive role to the Leadership Team

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VP of Finance

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• Responsible for the overall finance and accounting function

• Assess risks, oversees compliance, advice & supports• Responsible for treasury, planning and strategies• Team builder

Dr of Finance

VP of Finance

Chief Financial Officer• Responsible for the overall finance and accounting

function• Assess risks, oversees compliance, advices & supports• Responsible for treasury, planning & strategies• Team builder • Also a visionary, deep thinker and sees beyond the

obvious• Worldly, understand differences in people, places

and time• Business partner to the CEO

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Scope of the CFO

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360 Scope of the Business

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CFO

• Steward – Protect the vital assets of the company

• Operator –Provide direction on the execution of key processes

• Strategist – Take an influential seat at the planning table

• Catalyst – Use the power of finance and resources to direct initiatives

At What Point Do We (the Private Sector)

Need a CFO?

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• An active member of the Executive Team• Not there to be Dr ‘No’• They can come with baggage

Varying Behavior Components of Each Role

• Assume the CFO candidate has the ‘Can Do’ – Skills

• Will Do – Attitude & Behavioral Components• Aggressiveness• Sociability• Behavioral Energy

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Differentiating Components

Versatility and creativeness

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Questions?