The pace of finance is speeding up. As a finance executive, everything you had to consider before is still in play. On top of that, there are new technologies, new regulations, and new political realities that require consideration, adoption and oversight.
How do you keep up? How do you plan in an environment that is ever-changing? Dun & Bradstreet recently asked 11 experts from various industries to discuss: The 2017 Economic Outlook for CFOs. Subtitled Weathering Disruption in a Post-Brexit World, the white paper looks at upcoming changes due to Brexit and other political events as well as cross-border decisioning, digitization and cyber security issues.
Technology provides the ability to gather more data. But data, by itself, doesn’t provide solutions. To actually solve problems requires effective analysis;
“The new paradigm for decision-making is using the data we have at our disposal to ask meaningful questions, generate true insights—and answer meaningful questions.”
Dun & Bradstreet
Stephen Ufford, Trulioo’s CEO, shares his perspective in the chapter titled, Data-Driven Agility, Technical Flexibility and Transparency: The Post-Brexit Formula CFOs Need. He posits that due to consumer expectations, companies are demanding solutions that are adaptable and flexible. As so many changes are happening, many questions have never even been considered before. How can a company remain in compliance when handling consumer data from multiple jurisdictions?
As cross-border commerce evolves and supply chains become more intertwined, money launderers and terrorist funders invent new routes for corrupt funds. To counter the threat, regulations get more complex. Each iteration of change, brings more possibilities, more regulations and more complexity.
The only way to deal with this vicious cycle is having systems and processes that are adaptable and flexible. Specifically, he recommends,
“CFOs should be looking into investing more in the cloud first and analytics that will give them insight into policy across the organization second.”
It’s not just about technology. You also need to review your policies. In many cases, a Financial Institution (FI) will have a policy from decades ago that slows down the whole process. While that policy might have made sense then, is it necessary now? Sure, changing infrastructure is difficult but changing policies shouldn’t be as difficult and should not get in the way of progress.
Another recommendation is ensure data transparency. Do you have the full picture of the data you are using? How can you make proper decisions if you are only seeing part of the picture? Gather the actual data from your vendors, so that you can make your own analysis.
His most important recommendation; ensure your compliance. As Ufford states,
If you think as a CFO that compliance is expensive, try dealing with the costs of noncompliance.
Download the white paper from Dun & Bradstreet’s website:
THE 2017 GLOBAL OUTLOOK POST-BREXIT
Here’s an outline of the topics:
CHAPTER 1: Economic Uncertainty in a Post-Brexit World
Bodhi Ganguli, Lead Global Economist at Dun & Bradstreet, provides a high-level summary of Brexit’s impact on today’s global markets—highlighting key trends that finance, credit and risk leaders should observe.
CHAPTER 2: Navigating the Economic Landscape of a Post-Referendum UK
Markus Kuger, Lead UK Economist at Dun & Bradstreet, provides an overview of the macroeconomic theory, monetary policy, European policy and labor economics that could impact Europe’s interconnected financial markets.
CHAPTER 3: Anticipated Ripple Effects in the Asia-Pacific Region
Isaac Leung, Senior Economist at Dun & Bradstreet shares reactions to the Brexit vote in the Asia-Pacific Region, as well as the most prominent geopolitical risks and business uncertainties unfolding in the region today.
CHAPTER 4: How to Survive the Brexit Divorce Proceedings — A Tactical Guide
Matthew Bugeja, a geopolitical consultant who specializes in international relations, finance and economics, explains the history and sociology of trade negotiations in Europe.
CHAPTER 5: Setting the Stage for Current and Future Trade Agreements
Tom Willett, Professor of Economics and Director of the Claremont Institute for Economic Studies in the Department of Economics, Claremont Graduate University and Claremont McKenna College, discusses how the EU crisis set the stage for Brexit and what the vote to Leave will mean for international trade agreements going forward.
CHAPTER 6: Market Volatility and Crisis Environments: An Investor’s Birds-Eye View
Ralph Drybrough, Managing Partner at Fort Point Capital and co-founder of StratiFi, which builds technology for advisors to help their clients address market volatility in their portfolios, explains the need to examine geopolitical events over broader time horizons.
CHAPTER 7: Brexit & the New European Unitary Patent
Stuart Bartow, a partner in the Intellectual Property practice of Paul Hastings LLP, discusses the unitary patent and the implications Brexit creates for CFOs and risk officers who are monitoring European IP.
CHAPTER 8: Prioritizing Post-Brexit Response Activities
Rachel Broquard, a partner in the City Corporate practice of Eversheds, a leading global law firm and a source of highly specialized research on Brexit across many sectors and areas of law, speaks about the top implications to watch and the importance of creating a tailored strategy to assess the unique impact of Brexit on each business.
CHAPTER 9: How to Mine Business Intelligence to Manage Risk
Martin Sciortino, Chief Enterprise Risk & Audit Officer at Dun & Bradstreet, discusses powerful approaches to risk management, as well as risks to watch in 2017 and beyond.
CHAPTER 10: Data-Driven Agility, Technical Flexibility and Transparency:
The Post-Brexit Formula CFOs Need
Stephen Ufford, the CEO and founder at Trulioo, a global ID verification company, discusses how regulatory technology that’s agile, flexible and transparent will help companies, especially financial organizations, remain compliant during economic uncertainty.
CHAPTER 11: Companies Chart Their Paths for a Post-Brexit Future
Mary Shelton Rose, an Advisory Partner at PriceWaterhouseCoopers and leader of the firm’s US Brexit Response office, where she helps clients navigate risks and opportunities linked to Brexit. In this guide’s concluding chapter, she discusses how companies are managing their business risk through detailed scenario planning, improving their ability to act quickly once the realities of Brexit come into focus.