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Do CFOs understand risk management?
It is far too easy to generalize about all CFOs from the example of one.
But I am going to take one CFO, share what he has to say about risk management, and talk about how dangerous his views and practices are.
The Wall Street Journal recently published an article provided by Deloitte, Frank D’Amelio, CFO-in-Residence, on Managing Enterprise Risk.
He was the “former CFO and EVP at Pfizer and [is] currently CFO-in-residence and independent advisor to Deloitte’s CFO Program…. in his two decades as finance chief [he] has developed many important ERM practices. D’Amelio also currently serves as a board director for Hewlett Packard Enterprise Co., Humana Inc., Zoetis Inc., Catalent Inc., Sail Biomedicines, EntityRisk, and the Michael J. Fox Foundation for Parkinson’s Research.”
He says:
- The CFO still needs to own and drive the ERM process within the company.
- I made the head of internal audit the leader, in charge of advancing risk sensing, assurance, and mitigation strategies.
- I would expect internal audit to be closely tied into all areas and functions of the organization so that together with those business and functional leaders we could identify the key enterprise risks.
- Typically, large global…
