The change of the organization because of the implementation of Basel II, Sarbanes-Oxley and the Tabaksblat code still needs to be explored more. And that while at the same time compliance has a major influence on the structure of a company or financial institution. Front office sees a growing task package and in five years the CFO is the most important person in the organization. With the arrival of the financial guidelines there is much pressure on the reports. It is no longer possible to clean up the loose threads afterwards. The largest change appears at the front office. That is because the CFO and its financial departments are dependent on the sales organization for the supply of the correct numbers. The responsibilities in the back office will undoubtedly come back to them if anything goes wrong. But next to reacting to the situation, the financial administration is also working on a more pro-active basis on the front side. The CFO has various instruments to ensure that his front office will not get him into trouble. To start with he can decrease the risk by setting demands to contracts in advance.
In addition the financial director will attach an increasing amount of value to well-constructed risk profiles. However, for customer overviews like that he will need number materials and risk analysis tools. Salesmen need an increasing amount of information on potential customers before they can close a deal. In addition the sales organization needs to switch quickly. In an economy that runs 24 hours a day it is vital that a potential customer is helped as quickly as possible. This acceleration and increasing emphasis on risk analysis ensure that scale advantages are becoming more important. In the new organization the financial director is the most important person in the managing board. Numbers and processes are even more important than they are now because of compliance. The CFO is someone who controls the entire process, but does not have to quench any fires himself. The chain, with the sales organization as important element, will automatically deliver accurate numbers. The financial director can always close his general ledger at the right moment. That allows him to require less time to do the financial administration and gives him more time to look ahead. That will allow him to add value to the organization. For example by process optimalization, which allows the business operations to require less power.
The described processes exist in every organization. After all, not just financial institutions have to deal with compliance. Organizations in the real estate sector and production companies see a change in structures. Actually, it is everywhere where profit and income can only be captured in difficult models. This automatically leads to risk aversion behavior. An example is the increasing number of rental corporations that demand a bank guarantee from potential renters and top mortgages that are curtailed. It is precisely because the numbers are becoming more important in the future, that the CFO will become the most important board member within every company. If he has to make do with an Audi A6 now, he will be driving in an Audi A8 in five years.