Finance Function Transformation

Question 1

Disruptive changes in the finance industry: 6

Answer 1

• Globalisation
• Rapid advancements in technology
• Changes in risk and regulation, due to high profile scandals, like Enron and Worldcom.
• Consumer Empowerment, due to Reviews, social media, you tube and tick tock influencers
• Demographics and workforce changes
• Broader stakeholder considerations important, leading to Corporate Social Responsibility that reaches much further than the office walls.

Question 2

The 4 Vs in Operations Management:

Answer 2

• Volume
• Variety
• Variation
• Visibility

Question 3

External stakeholders: 8

Answer 3

• Shareholders
• Suppliers
• Lenders
• Customers
• Local Community
• Tax authorities
• Professional consultants
• External audit and tax providers

Question 4

How does the finance role add value: 5 As

Answer 4

• Assemble information
• Analyse to create insights
• Advise to influence
• Apply to make an impact
• then use Acumen to assess if the desired impact was achieved, if not start process again.

Question 5

Examples of KPI: 13

Answer 5

-Data quality
- Return on Invested Capital
- Employee Productivity
- Employee engagement
- Employee Retention
- Customer Experience
- Customer Satisfaction
- Competitor activity
- Customer Pipeline
- Customer Retention
- Talent Sourcing & Pipeline
- Brand Awareness
- Equity

Question 6

5 fundamental ethical
Principles: CIMA’s code of ethics

Answer 6

• Integrity
• Confidentiality
• professional behaviour
• professional competence and due care
• objectivity

Question 7

Characteristics of big data: 4 Vs:

Answer 7

• Volume
• Variety (different forms of data)
• Veracity (quality and reliability of data)
• Velocity (the importance of up-to-date and real-time data)