Challenges ahead for CFOs amid global economic downturn

According to Lee Thong Tan, CFO and Practice Lead of Workday, 2023 is going to be a challenging year for finance teams due to a number of factors. The global economic downturn has brought with it geopolitical tensions and supply chain disruptions, causing inflation, higher interest rates, and increased funding costs for companies. Another challenge is the changing consumer behavior and acceleration of digital transformation across different industries. This presents an opportunity for back offices and middle offices to improve their digital capabilities, but also requires CFOs to address the gaps in their workforce. Tan also stressed the importance of ESG and the need for companies to report non-financial information. Finally, the increasing use of AI and machine learning in finance is also a significant challenge for CFOs.

To address these challenges, Tan recommends that CFOs plan for potential downturns by forecasting different scenarios and being proactive. They should also review their debt levels, optimize their cash flow, and manage their working capital efficiently. Furthermore, embracing digital transformation and addressing the gaps in their workforce is crucial in keeping up with the changing environment. Although these challenges can be intimidating, they also offer opportunities for growth and innovation in the finance industry.

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