Page 163 - E2 Integrated Workbook STUDENT 2018

The finance function

Role and importance

1.1 The changing role of Finance

Historically, the role of the finance function was cost control,
variance analysis and reporting on past performance. This role has
steadily developed over the years into a more proactive, value
adding role. The role has changed from reporting performance to
enhancing performance.

1.2 Current finance roles

The current role of Finance is varied. It includes the following:

 assisting in the formulation of corporate objectives and strategy

 strengthening the management and understanding of the risks and funding
costs associated with particular products and strategies

 dealing with increasing product complexity, unprecedented market instability
and ever more exacting regulatory expectations

 coming under pressure from senior management to cut costs, while providing
more effective advice

 turning data into a genuinely valuable source of information.

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