The changing role and mandate of finance
THE CHANGING ROLE AND MANDATE OF FINANCE
Our previous Future of Finance research explored the changing role, mandate, and shape of finance. It found that the finance function was evolving and transforming beyond core accounting and financial reporting and into a management accounting discipline that enables value creation, while the basic finance activities are increasingly automated through technology. Research shows that, in this rapidly changing environment characterised by multiple uncertainties, the finance function continues to transform and evolve. The role of finance is broadening, and, with this, new skills and competencies are required.
In ‘The role of finance’ paper, we outline the role, identity, and mandate for the finance profession. It starts with an overview of the foundational principles, whereby finance provides accurate and useful information and offers valuable insights on the organisational operations and strategy, discussing how these fit the volatility, uncertainty, complexity, and ambiguity of our working lives. The paper then reflects the research dynamics, revealing that the profession is not morphing from one role to another, rather expanding in breadth and depth to affect a variety of domains like technology, sustainability and ESG, and leadership.
It sees management accountants and finance professionals as savvy analysts, communicators, decision-makers, and business partners who are growing and improving organisations internally to influence their business models and ever-changing environments. The paper also discusses the intergenerational diversity of the profession and the disparities and synergies this offers.
Business Controller, Engineering & Consultancy Services, Europe
Finance Business Partner, Professional Body, South East Asia