Prediction And Analysis Of Enterprise Financial Management

The emergence of large and complex data, while challenging financial functions, also provides important opportunities for enterprises to analyze business.

We hope that the financial sector and the CFO can be located at the center of this data revolution.

Analytical tools with more powerful predictive capabilities are constantly being introduced.

The increasing intelligence and performance of mobile devices, such as tablet computers, are also promoting a revolution in personal and business ecosystems.

The promotion can be collected, arranged, standardized and generated in a more timely manner.

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This will help to obtain more effective business information, identify new market opportunities and profitability opportunities, assess and manage corporate performance, simulate operational environment, or collect customer opinions.

Future CFO and their financial functions must be very good at using this technology.

In theory, this means that the time to record and verify data will decrease.

And the time to analyze the meaning behind data will increase, that is, more financial perspective will be applied to enterprise decision making.

Analysis enables business information to be further refined.

It involves not only querying data and reporting information, but also connecting data points, returning, linking, evaluating and predicting future business possibilities.

For example, when analyzing customers' interest rates, business messages can identify which customers contribute the most to corporate profits, and data analysis will explain why these customers contribute the most.

Prediction analysis, that is, predicting future performance based on past performance of enterprises, will be the key driving force for CFO and their financial businesses in the future. However, in the turbulent times now facing enterprises, scenario planning and stress testing will increasingly become the top priority of financial functional departments.

The next question becomes how to divide the boundaries - useful schemes and parameters are always very limited.

Another question is who will control this great opportunity? Business information and subsequent analysis are initially developed in the field of computer science, information systems and marketing.

Financial professionals are the analysts that business takes for granted.

From this point of view, analysis will increasingly fall within the scope of management and responsibility of CFO.

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It is hard to get inspiration that regulation will have a huge impact on the future role of CFO.

In the United States, the extensive "Dodd Franck bill" passed in July 2010 is undoubtedly the most important legislative reform since the great depression.

It aims to enhance accountability and pparency in the entire financial services sector, particularly in relation to capital financing and new reporting requirements.

The broader regulatory environment of the global economy has not shown signs of cooling down, from the persistent turbulence of the adoption of international financial reporting standards (IFRS) and accounting standards, to the development of the III Basel (Basel III) and the laws and regulations in line with the national conditions of various countries.

Social and environmental problems emerge one after another, thus affecting regulatory reporting requirements.

As companies expand overseas, the complexity of the relationship between management and regulation is also increasing. The change of regulatory environment will become a bigger problem.

CFO is becoming more and more necessary and has more and more responsibility to uphold and abide by regulations.

They are now investing more personal resources in handling regulatory affairs and lobbying policy makers to ensure that new regulatory requirements can bring benefits to enterprises.

Future CFO needs to prevent legislation that is too cumbersome and cumbersome.

They will need to lobby on behalf of enterprises, implement business processes and agreements that do not require more regulation, and influence the development of relevant policies.

They also need to ensure that financial functions of enterprises have professional ability to solve regulatory problems.