We asked Brian Olson, former CFO and CEO of both private and public companies and executive coach of CEOs, how CFOs are effective to lead companies throughout the turbulent era of economic and financial markets.
This situation may seem sudden and dramatic, but the signs have been there forever. Tariffs were a consistent topic in President Trump's speech, making its impact on businesses foreseeable. This serves as a clear reminder that companies actively identify, classify and evaluate both expected and unexpected risks.
The CFO is at its heart, the risk manager. Their responsibility goes beyond recognizing current threats. They must analyse the underlying business factors that could lead to future disruptions. Effective financial leadership requires a structured approach to risk, categorizing potential issues, identifying contribution factors, monitoring trends, and reporting insights to the organization. Understanding probability accordingly and planning is essential.
Tariffs, economic changes and supply chain disruptions should have been integrated into the risk matrix many years ago. Companies with well-structured preparation strategies can absorb shocks much more effectively than fighting for solutions after the fact.
Some events are really unpredictable, but this wasn't the case. The warning sign was clear. That said, the impact of humans – on employees, executives, and business operations is not recognized. Thoughtful, measured responses are necessary to navigate complexity and mitigate confusion.
“It's deep and lasts for a long time”
Leaders, especially CFOs, must remain configured. No matter the scenario, panic is by no means the answer. Leadership requires clarity, decisiveness and strategic action. Depending on the scale of the disruption, professional communication with employees, suppliers and customers may be required.
Given the economic impact, this situation is more than a temporary setback. The effect is likely to be deep and lasting. Companies need to rely on data, industry knowledge and unique strategic expertise to find the best path. There is no universal solution. It requires the business to assess a particular situation and make intentional and practical decisions.
One fundamental truth: Crisis is not devastating, not devastating at this point, and a period of prosperity will not last forever. These realities highlight why strict risk management is essential.
Even in challenging times, opportunities exist. Managing simply through adversity should not be the only focus. These disruptions can also provide a pathway for strategic growth. Whether identifying new suppliers, pursuing vertical integration, acquiring, restructuring, or entering new markets, CFOs can move forward and showcase their strategic leadership.
Ultimately, resilience begins with preparation. Long before a crisis occurs, there must be a strong foundation, advanced strategies and a robust support structure. A proactive planner is always better positioned to keep uncertainty down to the weather and show up more strongly.
