Published by: Nuru
Published date: 07 Feb 2022
Role of the financial manager:
In this topic Role of the financial manager, we described the overall roles of financial managers like the CFO, CMO, and CPO led by the CEO.
Organization of finance function refers to the authority and responsibility among persons involved in the finance functions in an organization. Proper organization of finance function helps to avoid confusion on roles and responsibilities of employees, the duplication and overlap of the activities.
In a large company with many shareholders, it is not possible to look after the day-to-day activities, so they elect a BOD( Board of Directors). The BOD hires the CEO(Chief Executive Officer) and the management team led by the CEO. The CEO may be from the BOD or anyone outsider following the regulations of the company or the country. The CEO of the firm is titled by the managing director or president
Under the CEO, there are mainly different officers on the basis of departments, and it varies from one organization to another, there may be some additional officers as well. But in general, there are:
CFO is appointed to oversee all finance functions. S/he is directly under the CEO and is a member of top-level management. The CFO of the firm is titled by the deputy managing director or vice president.
Two key financial officers namely the treasurer and controller assist the CFO.
a. The treasurer is mainly responsible for financial activities and focuses more on external factors.
b. The controller is responsible for accounting activities and focuses more on internal matters.
Under the Treasurer, there are various managers working, they are:
Under the Controller, there are various managers working, they are:
A chief marketing officer ( CMO) is an executive who is in charge of developing and overseeing marketing and advertising plans. The CMO reports to the CEO and is part of the C-level executive team. Many companies use the term Marketing Director with the same meaning as CMO.
A chief product officer (CPO) is a corporate title referring to an executive who leads the entire product organization. Alternatively, the CPO is known as VP of product or head of product. A CPO is responsible for the strategic product direction.
The chief legal officer (CLO) is an expert and leader who helps the company minimize its legal risks by advising the company's other officers and board members on any major legal and regulatory issues the company confronts, such as litigation risks.
The chief operating officer (COO) is a senior executive tasked with overseeing the day-to-day administrative and operational functions of a business. In some corporations, the COO is known by other terms, such as "executive vice president of operations," "chief operations officer," or "operations director."