Navigating uncertainty

Matt Rodgers at OneStream describes how CFOs can build resilience in a time of volatility and rapid change

 

This year, finance leaders continue to face a number of economic and geopolitical challenges. On top of the unprecedented levels of global uncertainty, recent policy changes from the new Trump administration have caused international markets to become even more unpredictable. 

 

Meanwhile, the aftereffects of Brexit are still being felt in the UK and businesses are facing huge pressure with the upcoming national insurance rises. Organisations are forced to consider cost-cutting measures such as reducing headcount or offshoring operations.

 

Navigating the current landscape is all about risk mitigation. However, many CFOs have become increasingly risk-averse amid heightened macroeconomic uncertainty. It’s important that finance teams don’t get caught up in the doom and gloom but instead effectively guide their organisations through this disruption while ensuring long-term financial stability. 

 

 

Managing risk in uncertain times

Many CFOs remain burdened by fragmented data sources, outdated legacy systems, and a lack of real-time visibility into financial performance. Transformation is essential if CFOs want to successfully stay ahead.

 

However, the office of Finance has typically been slow to adapt to technology changes. This challenge is underscored in OneStream’s Finance 2035: Return to Investment report, which found that 72% of UK CFOs see legacy systems and technology limitations as major obstacles to adopting a more strategic role. 

 

It’s important for businesses to understand that an over-reliance on outdated systems can lead to data discrepancies, bigger compliance gaps, slower decision-making, and missed growth opportunities. 

 

The key lies in a gradual approach to digital transformation. These improvements include automation, AI-driven forecasting, integrated business planning and unifying financial and operational data for a single source of truth within the organisation.

 

Taking these steps helps finance teams adapt more quickly to economic shifts while minimising implementation risks. Modern platforms can streamline data and help create a holistic view across the business in real time, to make the process of using data easier and more reliable.

 

 

Resilience through real-time insights

Resilience in finance is about anticipating challenges and adapting to them quickly. However, many finance teams struggle with fragmented data sources, making it difficult to gain a clear, real-time picture of their businesses’ financial health. Without being able to access a full view, many remain in a reactive cycle, struggling to shift toward a more strategic role.

 

OneStream’s research shows that 69% of UK CFOs find it difficult to prioritise growth due to the overwhelming amount of data they must decipher, often relying on disconnected systems that make strategic planning more difficult. 

 

This is where AI-driven scenario planning can make a difference, as it allows professionals to model multiple economic outcomes and adjust accordingly. Finance teams can then make informed decisions based on a comprehensive approach, with the agility to adapt to changing headwinds.

 

 

Evolving role of finance professionals

AI and automation are not just streamlining workflows, but they are reshaping the role of CFOs and their teams altogether. With routine tasks like data reconciliation, reporting, and compliance being automated, finance professionals can shift their focus toward higher-value strategic work. This transformation enables finance teams to contribute valuable insights, lean into business strategy, and drive innovation rather than being slowed down by time-consuming, repetitive tasks.

 

Finance professionals can now take on more advisory and analytical roles. Their function moves beyond number-crunching and focuses more on strategic advisory, driving business direction through problem-solving, forecasting, and data-backed decision-making. 

 

But technology alone isn’t the solution; finance teams also need the skills to leverage it effectively. As AI and advanced analytics reshape decision-making, finance professionals must be able to interpret data and turn insights into action. That’s why continuous upskilling is important as it ensures teams can maximise new tools and drive real business impact. 

 

Not only does this maximise team effort, but it will also attract more talent to an industry that is struggling to bring in young talent with 45% of firms ‘significantly’ affected by skills shortages.  By highlighting the variety of the role, it will become more attractive to generations craving jobs that are technology-first.

 

 

Competitive edge of the finance function

Staying competitive through modernisation and upskilling isn’t just valuable for a finance team’s agility. It also helps strengthen investors’ confidence in the business. Investor expectations have evolved, and financial leadership is now a key determinant in investment decisions.

 

CFO competency ranks as the second-highest priority for UK investors, surpassing even the CEO, which ranks seventh. It’s not surprising, then, that the path from CFO to CEO is becoming more and more common. In 2023, the percentage of CEOs who were once CFOs increased from 21% in 2019 to 30%. 

 

Investments towards digital transformation enhance financial agility, ensure compliance with evolving regulations, and create a resilient organisation that can thrive even during uncertain times. 

 

From AI-driven forecasting to real-time scenario planning, the tools are there to help CFOs and their teams take a more proactive role in shaping the future and to support their roles. Companies that embrace this shift will become more resilient, more adaptive and better positioned to attract investment and talent in the long run. 

 

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Matt Rodgers is EVP, EMEA at OneStream

 

Main image courtesy of iStockPhoto.com and Dzmitry Skazau