Insight

Head FICO consultant Jill Van Der Merwe offers six steps to deal with the VAT rate change.

With three decades of experience at the intersection of finance and technology, Ronald Laxton knows the challenges CFOs face, and how to solve these.

It's a Shovel founder Jessica Whitcutt Yellin on why SA scores so badly in reputation rankings.

Imperial Holdings CFO Mohammed Akoojee shares what he's learnt about perseverance and opportunity.

Getting the right people into your organisation is a challenge - and something we often get wrong, says UCT's Tim London.

Chris van Zyl, WP Rugby captain, has proven he is a pro at balancing both the numbers and the line-outs.

Talita Ferreira, a former BMW CFO, says authentic leaders and cultures are the differentiators to financial and strategic success.

Set goals for yourself and pursue continuous learning, advises Motus CFO Ockert Janse van Rensburg.

Standard Bank's Stephen Brickett and Paul Fallon explain IFRS 9 and what it means for CFOs

UCT's Tim London shares what he considers four positive outcomes of the Steinhoff scandal

Standard Bank operates with a model that lists five value drivers. And financial outcomes are not even number 1, 2 or 3.

Digital technology is having a huge impact on banks, says James Nicolson, chief architect for Corporate and Investment Banking: digitisation and blockchain, at Standard Bank. “Like many industries, it started out at the consumer end of banking, and now we are seeing a strong drive at a CIB level towards a much richer digital experience.”

Through the course of a tumultuous 365 days since the launch of the inaugural and extremely successful Finance Indaba Africa, I’ve been fortunate enough to learn alongside finance leaders and exceptional professionals, and I’ve learnt some great lessons. While some are familiar cliches and almost all seem like common sense, in my experience, it’s the obvious and common-sense advice that is often the hardest to live by. Here are my top five.

“Our role within Human Capital is to be the custodians of culture and strategically partner the people agenda that enables our business strategy,” says Anré Klopper-Stroh, Human Capital Head for the Corporate & Investment Bank (CIB) within the Standard Bank Group. “The role of the Human Capital team within CIB is to partner our people in, for and across Africa to realise their ambitions, thus enabling our clients and the communities in which we operate to achieve their objectives. Furthermore, we need to position ourselves for what the future holds by understanding the mindsets, skillsets, and toolsets required for our people to stay relevant and contribute to the ambitions of the business into the future.”

An in-house bank may be simply defined as an internal organisation which assumes some of the functions traditionally performed by external commercial banks to provide enhanced performance, transparency and control. Traditionally, the operation of an in-house bank was regarded by most finance executives to be the preserve of the largest corporations. Despite the many benefits, these structures were thought to be too expensive and complicated to add cost effective value. As more efficient cloud solutions become available, the threshold barriers for justifying in-house bank adoption have been steadily lowered, and positive cost/benefit analyses are becoming more and more common.

As the head of Corporate and Investment Banking (CIB) for Africa at Standard Bank, Victor Williams is responsible for corporate and investment banking in the 19 countries – excluding South Africa – that comprise the Africa Regions. He says the bank serves corporate, sovereign and institutional clients (local corporates and multinationals) in those markets, providing them with global markets, transactional banking and investment banking services. “In each of the markets in which we are present we are looking to build the leading corporate and investment banking franchise in that market,” he says.

“CFOs are in a unique position to make a difference – by taking steps to understand what reporting requirements are out there and how various risks may affect companies now and in the future, they can help safeguard their companies and advance the future of sustainability,” says Rodney Irwin, MD, Redefining Value at the World Business Council for Sustainable Development.

“There’s never been a more wonderful time to be a banker,” says Funeka Montjane, CEO of Personal and Business Banking at Standard Bank. Montjane, a 2015 WEF Young Global Leader, believes that the future of banking lies in creating time for customers with the help of automation, artificial intelligence and FinTech. Speaking about the future of banking at the Singularity University South Africa Summit, hosted on the continent for the first time in collaboration with Standard Bank, Montjane said that we’re living in what Stephen Hawking called ‘the century of complexity’ – in a more compressed and globalised world characterised by rapid disruption, and where information is free.

It has been 17 years since the inception of the South African Competition Act, and competition law enforcement continues to be vigorous and successful. Some now argue that competition law and its associated institutions are becoming a victim of their own success. Where other regulators have mostly proven toothless, the Competition Commission and the Competition Tribunal have been able to pry open cartels and punish offenders. Where broader economic policy has failed to force companies to change tack, competition policy clearly has not disappointed. In this article, competition experts Minette Smit and Marylla Govender explore the most recent trends in competition law, along with the rise of ‘the Patel factor’.

Nishant Saxena won two Awards at this year’s CFO of the Year Awards – High Performance Team and Young CFO of the Year. He received this recognition because he took Cipla’s struggling, low-margin, sub-Saharan Africa (SSA) unit and turned it into one of the most profitable pharma players in South Africa. In so doing, he completely transformed the finance department, creating a high performance team in the process. Nishant shares his top tips for creating an efficient team.

Many CFOs worry that machines and robots may affect their jobs in the near future. Futurist Graeme Codrington, strategy consultant at TomorrowToday Global, believes they’re right to have this concern. Thus, CFOs need to partner with machines to make the most of the new world of work – and become more human to keep adding value, he says.

Vodacom’s Till Streichert, CFO of the Year 2017, talks us through six of the biggest issues he has faced while being a CFO. “I love my job and the profession.”

A thorough, smart and stealthy due diligence process is among the top ingredients for successful mergers and acquisitions. We spoke to finance executives and dealmakers about the homework a growth-hungry company needs to do. “Do two rounds of due diligence, put your very best finance team members on the deal and make sure you do your homework,” says Telkom Group CFO Deon Fredericks.

Business decisions are frequently flawed. A KPMG study of corporate mergers and acquisitions – some of the highest-stakes decisions that executives make – showed that 83 percent failed to create any value for shareholders. What are the greatest cognitive and psychological pitfalls that lead to such bad decisions and how can you avoid these?

A thorough, smart and stealthy due diligence process is among the top ingredients for successful mergers and acquisitions. We spoke to finance executives and dealmakers about the homework a growth-hungry company needs to do. “Ideally, the CFO shouldn’t only focus on the financials, there needs to be a cross-over. The CFO, along with other execs, can really help to join the dots in a deal,” says Charles Douglas, head of M&A at law firm Bowmans.

“Allow compliance to participate in front line engagement to create a mutual understanding on key client challenges and pro-actively pick-up on key client challenges,” advises Suzette Els, Chief Compliance Officer for Standard Bank Corporate and Investment Banking. In this article, part of a series from Standard Bank specialists, Suzette talks about trends in the compliance space, how clients are being assisted with these, and what CFOs should expect.

High-profile data breaches are regularly in the news and, seemingly, businesses and are losing the battle to protect their intellectual property (IP), corporate and customer data from professional cybercriminals. Michael Marriott, security expert at Digital Shadows, shares his insight.

CFOs who are handed property portfolios or commercial challenges with a property aspect really have a great opportunity to get closer to the business. And with a closer handle on your business you become a better CFO. This was the view of guests at last night’s CFO South Africa dinner, which was filled with great insights, perspectives and relationship building.

A thorough, smart and stealthy due diligence process is among the top ingredients for successful mergers and acquisitions. We spoke to finance executives and dealmakers about the homework a growth-hungry company needs to do. “You cannot over-plan,” says Arie Maree, Ansarada Managing Director for Africa and the Middle East. “Once the rubber hits the road with a deal, there are tight timelines, plenty of stress and lots of money at stake. More planning means a smoother due diligence and ultimately, a smoother transaction,”

At the turn of the year, futurist Craig Wing wrote a piece where he postulated an increase in three seemingly unconnected developments all aligned with the central tenant of trust and transparency in a connected world. As we approach the middle of the year, Craig has updated it, adding local context particularly within the changing landscape of credit downgrades.

“Everyone has a different way of thinking about FX and settling and hedging their FX and we must solve and understand for each of these,” says Richard de Roos, Head of Foreign Exchange for the Standard Bank Group. In this, the second article in a series from Standard Bank specialists, Richard talks about forex trends in Africa, what Standard Bank is doing to stay ahead of the pack, and what CFOs should expect in this arena.

A thorough, smart and stealthy due diligence process is among the top ingredients for successful mergers and acquisitions. We spoke to finance executives and deal makers about the homework a growth-hungry company needs to do. “The due diligence report is often just used to tick the box and the findings are not adequately translated into the pricing and sale and purchase agreement,” says Karin Hodson, Partner and Transaction Services Leader at Deloitte. Failure to undertake adequate due diligence can result in significant erosion in value and potential losses of customers, staff and everything in between, she adds.

“In South Africa, the full impact of a downgrade to sub-investment status will probably only manifest over the next 12 to 18 months. Companies in strong balance-sheet positons should be cautiously opportunistic and look for value-enhancing acquisitions both in South Africa and abroad. As much as economic conditions may be tough, my view is that we should never let a good crisis go to waste,” says Zaid Moola, Head of Client Coverage South Africa for Corporate & Investment Banking (CIB) at Standard Bank. In this, the first article in a series from Standard Bank specialists, Zaid talks about the trends he is seeing in his area of expertise and offers expert advice for CFOs.

A thorough, smart and stealthy due diligence process is among the top ingredients for successful mergers and acquisitions. We spoke to finance executives and dealmakers about the homework a growth-hungry company needs to do. “You don’t always want to let the staff of the other company or companies know you are doing this process,” says Sibanye Gold CFO Charl Keyter. “You have to be stealthy so as not to raise suspicions.” Charl gives one of the best and certainly most amusing explanations of due diligence:

According to Europol’s 2016 Internet Organised Crime Threat Assessment (IOCTA), several EU states have found that cybercrime offences have surpassed traditional crimes, with trends such as crime-as-a-service and ransomware rising significantly. Given the increasing sophistication of the attack landscape, hacking has become a genuine threat facing organisations and countries across the globe. And yet, the ability of those targeted to manage such attacks remain, for the most part, limited. Riaan van Boom, Managing Director, MWR Infosecurity South Africa, unpacks the issue.

A thorough, smart and stealthy due diligence process is among the top ingredients for successful mergers and acquisitions. We spoke to finance executives and dealmakers about the homework a growth-hungry company needs to do. “Prepare, ensure all parties are on the same page and don’t get distracted by unnecessary details,” advises Dr Andrew Balnaves, Executive Vice President of Africa Corporate Finance at Standard Bank.

Today’s world requires innovation to remain competitive, and with the changing nature of consumers, businesses cannot afford to be on the wrong side of technology. CFOs need to be on top of tech.

In this age of multi-channel communication, we need to be diligent about our communications because the consequences – be it at home, in the workplace or in the M&A environment – can be far-reaching.

Perhaps the most underrated aspect of crowdsourcing is its potential to disrupt the current cost structure that supports talent management. Crowdsourcing makes sense when thinking about the perennial constraint that businesses face: costs. Cost containment remains a priority, and with people costs (including salary, training, perks, etc) accounting for close to or over 60 percent of the cost structure of most companies, crowdsourcing offers the potential to greatly reducing this expenditure.

Where talent management requires reviews to determine who belongs in what box and what to do with them after boxing them, crowdsourcing promises to bring out-of-the-box thinkers who work on a specific project as a team of free agents on demand.

Crowdsourcing promises to make scarce and critical skills available cost effectively, perhaps close to 90 percent cheaper, and disruptively. Yet most companies currently rely on talent management – a human resource function that has been around for over half a century but whose tools and techniques has changed little during its existence – to identify, attract, develop and keep talented people who have these sought after scarce and critical skills. The question is: will crowdsourcing make talent management obsolete?

A well-drilled team, acting in disciplined harmony and each performing their individual tasks within the greater strategy, will outperform any grouping of individuals. Here are three crucial factors to integrate acquired teams successfully.

Kumba Iron Ore, a business unit of Anglo American won the EY 2016 Excellence in Integrated Reporting Awards. In this exclusive guest article for CFO South Africa, Nadia Schoeman, who has headed up the integrated reporting team since 2015, explains how Kumba’s report went from good to great.

AECI CFO Mark Kathan feels that more consultation with the IRBA is required.

To achieve superior growth, a company needs to get its organic growth right, but acquisition strategy is a crucial and very powerful tool. In this article, I delve into my experience as a CFO to provide an insider’s guide to a successful M&A strategy.

Unpredictable, wildly volatile foreign exchange market conditions seem to be established as the normal state of things in today’s economic and political turmoil. Many South African companies with significant import/export business are naturally exposed to FX market fluctuations, which frequently lead to unwelcome volatility in profits and earnings. With today’s emphasis on cost efficiency, companies are torn between budgeting the resources to put an effective FX exposure hedging programme into place or risking a substantial proportion of their revenue.

I had the privilege of learning with a great number of South Africa's finance leaders in 2016 and from these engagements it was revealed that a primary ingredient for success is consistency. Even in a year of huge turmoil, CFOs that are really making their mark show remarkable consistency.

“As we approach the 10th anniversary of the beginning of the financial crisis, the banking sector remains out of kilter,” writes Peter Thal Larsen (pictured), Global Economics Editor, Reuters Breakingviews, in the introduction of this year’s Predictions 2017 e-book. Every year, Reuters publishes a series of predictions through its Breakingviews team. This year’s book is out, and boy is it a captivating read. What follows is an excerpt from Peter’s Introduction to the book.

With the festivities of the new year now passed, we tend to reflect on the madness that was 2016. Undoubtedly, globally we will remember BREXIT and the election of President Trump as arguably two of the most “shocking” global events; events which left many of the “experts” reeling after their failed predictions. Herein lies my predicament of writing this piece on the future of 2017: predictions, much like soothsaying, are never an accurate science. Rather, guesstimates of what will come by looking at the underlying cause versus – what has become – a very sexy view of trends. The future is a matter of choice, not a matter of chance. As such, what follows isn’t a set of predictions but what I expect will be three of the prevailing underlying forces; some may be seen and apparent, some will be unseen, with the “so what” repercussions felt way beyond 2017.

Clifford Appel, a 2016 CFO Awards nominee in the public sector category, and finance head of the Department of Social Development, shared his thoughts on transformation and the role that finance plays, as part of a feature on the subject in CFO Magazine, contributed by Roy Clark.

The matter of diversity and transformation in the workplace is topical and can, at times, be somewhat controversial. Roy Clark penned a broad and insightful guest article about transformation in CFO Magazine. As part of this, we asked Seithati Bolipombo, an inspiring young CFO, to share her thoughts on the topic. “Transformation won’t happen by osmosis or natural selection because at its core, it is a people thing. It comes down to people and behaviour and the decisions that people make,” she said.

Invoice fraud, when a genuine invoice is altered to get a customer to pay for goods or services but into the wrong account, is increasing at a rapid rate, and while it is difficult to trace it is not impossible. In this guest article, John Mc Loughlin, MD of J2 Software, explains seven practical steps you can take to prevent invoice fraud from happening to your business.

As part of a broad feature about transformation in CFO Magazine, including an insightful guest article by Roy Clark, we asked the award-winning finance leader, Walter Leonhardt, to share his thoughts on the topic. "If you have an engaging, friendly and approachable style, you probably empower by default."

Invoice fraud is considered a low-risk crime by fraudsters and is increasing at alarming levels because it is difficult to trace. Difficult, but not impossible!

Three years ago, MiX Telematics decided their JSE listing was nice but that what would really boost the fleet and mobile asset management solutions firm was a New York Stock Exchange (NYSE) listing. CFO Megan Pydigadu, nominated for the CFO Awards in both 2014 and 2015, describes the listing process as a roller coaster ride. In this exclusive article, Megan shares a number of important lessons for companies that are considering going to New York.

Healthier companies outperform the market by as much as 50 percent, recent studies indicate. If health is an important measure of a country’s developmental status and needs, the same goes for a business. In this regard, companies are becoming more attuned to the need to both measure and report on their staff’s health and well-being. We spoke to two top CFOs and two corporate wellness experts to find out what companies can do to invest in the well-being of their staff – and what ROI they can expect.

“It seems that many executives continue to make decisions not only based on the past but even in the interest of the past or in its defence,” writes Dr Morne Mostert, Director of the Institute for Futures Research at Stellenbosch University. According to him, “the intellectual agility to engage simultaneously with multiple possible futures is highly likely to increase as a prerequisite for a chair in the boardroom of the future”.

Integrated reporting improves firm value, cash flows, and analyst forecast accuracy. It also leads to more dedicated long-term investors. That is the conclusion of four academics in this guest article written exclusively for CFO South Africa, based on research they conducted with financial support of the Chartered Institute of Management Accountants (CIMA). Using mostly South African data, they argue that CFOs should care deeply about integrated reporting. By Mary E. Barth, Steven F. Cahan, Li Chen, and Elmar R. Venter* Since the financial crisis, several questions have been raised about the appropriateness of the traditional corporate reporting model. Key statistics highlight some of these concerns about corporate reporting. In 1975, around 83 percent of the market value of S&P 500 firms could be explained by physical and financial assets; by 2009, that number dropped to 19 percent. The remaining 81 percent consist of intangibles; most of which are currently not communicated to investors. Bob Laux, senior director financial accounting and reporting at Microsoft, argues that “the value-drivers of a company are increasingly intangible and include items such as intellectual and human capital as well as environmental, social and governance issues”. In his view, such changes in the ways in which company value is created are not matched by developments in corporate reporting. In line with this concern about unreported value drivers, EY points out that, on average, the number of pages devoted to noting disclosure in financial statements and in management discussion and analysis quadrupled from 1972 to 2012. Former United States vice president, Al Gore, and David Blood warn that “despite the volume and frequency of information made available by companies, access to more data for public equity investors has not necessarily translated into more comprehensive insight on companies”. Adding to the disclosure burden may therefore not necessarily be the solution to the unreported value drivers. The proponents of integrated reporting see it as the solution to this vexatious issue. In this article, we briefly discuss what integrated reporting is (and what it is not), together with some of the academic evidence emerging on the benefits of integrated reporting. What is integrated reporting?

The Finance Indaba Africa 2016 is almost upon us and it is time to start looking at what exactly lies ahead at the Sandton Convention Centre on 13 and 14 October 2016. Every day until the event, we will shine a light on the parts of the amazing programme. Today: Finance leading with data and insight, a two-day programme opening up the world of analytics and technology.

Dutch productivity guru Marcel van den Berg, Think Productive’s director for Western Europe, who will be speaking at the upcoming Finance Indaba Africa 2016, sat down to talk to us about productivity – where we’re going wrong, how we can improve, and how simple changes can have big consequences.

The BEE journey must not be seen as just another a tick-box exercise, says Sugan Palanee, Head of BEE Services at EY. Rather, it should be viewed as an evolutionary journey which, while it may come with several challenges, will bring with it as many opportunities that will benefit the entire business ecosystem.

“It is simply staggering that of the 353 audit partners who sign off on the financial statements of all JSE-listed companies, only nine are Black African – that’s just 2.5%,” says Mitesh Patel, Managing Director of Nkonki, a 100% black-owned audit and advisory firm. “Given the transformation imperative within the broader South African corporate context and our profession as a whole, there can be no doubt that Mandatory Audit Firm Rotation (MAFR) will assist in driving the transformation agenda.”

The strategic evolution is a a development path built on choices about what is best for the business in the long term rather than on immediate changes that may be detrimental further down the line. In this Expert Insight, Sarah George, ERP & EPM Business Development and Product Strategy, Oracle South Africa, explores the speed of business transformation and the role that agile technologies play.

Technological advances are disrupting the status quo and creating huge turbulences. Businesses are converging and unforeseen competitors are emerging. It is all about creating disruption and staying ahead of the curve, which is rising at a rapid pace. And amid all this change, CFOs still need to create profits for their enterprises, writes Leslie Moodley, managing partner Global Business Services, IBM South Africa.

An increase in cyber attacks targeting businesses and legislative requirements like the Protection of Personal Information Act (POPI) have brought attention to the need for effective data governance, says Yolanda Smit, Strategic Business Intelligence Manager at PBT Group. At its heart, data governance focuses on driving enterprise data management practices to the next level of maturity, where data is being managed intentionally and not just as an afterthought. Data security and privacy management, data architecture management, data quality management, records management, business intelligence, and data operations management are all vital elements in this new discipline of management.

Business is about people. Of course it’s about profit, processes, technology, and many other things too, but ultimately it’s about people. The end buyers in all value chains are people, and the energy that drives a business is people: employees, management, owners, stakeholders. These people have needs as well as worries. A big matter on the minds of many is their family, and within this, concerns about education. An innovation turn-key, tax-friendly employee benefit product, Kinfundi, hopes to change this.

“In every industry, ground-breaking leaps into the future are being reported on an almost daily basis. All except for one – mining. Could it be that our current world view limits the way we think about mining companies? Could we invent a more powerful, more soulful, more meaningful way to mining? I think we can,” says expert accountant Coenie Middel.

While many other teams in a business have some flexibility as far as deliverables, reporting and project timelines go, this is a luxury not often enjoyed by the finance team. But as the pace of doing business is so much faster today, is it not time the finance function became more agile too? We spoke to experienced CFOs and other industry experts to get their insight. By Toni Muir "Being agile requires openness, the reservation of judgement and the ability to turn on a dime," says Terrence Taylor, general manager: Talent, Analytics, Leadership and Learning at Discovery. You need people with a cosmopolitan outlook, an open mindset and an eclectic set of experiences, he adds, and a leader who is comfortable sharing leadership and power. But what exactly is an agile team, and what makes it so? Moreover, why is this important to the finance function?

CFOs need to actively manage IT risk, says John Mc Loughlin, Managing Director of software company J2: “It is vital that the CFO take an active role in managing this risk – as it appears IT may not have the executive drive to get it done themselves.” In this article, John shares some of the top questions CFOs must ask themselves when dealing with risk management and threats, and before declaring their IT policy as sound.

Roy Clark, MD of Clarkhouse Human Capital, recently moderated a thought leadership session where 20 CFOs were invited to discuss the role of transformation and diversity in the workplace, and what the role of a CFO is in fostering this. In this self-penned piece, Clark delves into why transformation and diversity are such misunderstood notions, and looks at how corporate South Africa can make these ideas work within their organisations.

How do you really view your employees, asks Derek Brown of Abaco Consulting? As a problematic high and fixed cost to the business or as the business’s biggest and most competitive asset? The dichotomy, he says, is that they are of course both at the same time. By Derek Brown, Abaco Consulting On the one hand, your employees represent one of your single largest fixed costs, and there is continual pressure to reduce that cost by reducing head counts, increasing productivity, the deployment of automation, robotising, process re-engineering, Lean, Six Sigma and Agile initiatives, and if all else fails, the outsourcing of operating functions. Yet, we often proclaim that our people are the differentiator for our company in the marketplace and that they are the company’s greatest single asset in our competition for business. So how do we reconcile these two potentially conflicting viewpoints?

"What has Integrated Business Management delivered for Lamb Weston / Meijer (LWM)?" asks CFO Peter van Wouwe - LWM being one of the world's largest companies in frozen potato products, appetizers and dehydrated potato flakes. "Peace of mind, that’s what." In this article, Marco van Alfen, business planning and control expert at consultancy firm EyeOn, unpacks and demonstrates the concept of Integrated Business Management. Integrated Business Management, Integrated Business Planning (IBP), Sales & Operations Planning (S&OP), Sales Inventory & Operations Planning (SIOP): these are all terms used to indicate the multidisciplinary process by which demand and supply are tuned in an organisation. This is the most basic point at which they agree. During the eighties, the term S&OP marked this reconciliation process. TF Wallace had the key elements of a good S&OP process as: “… a set of decision-making processes to balance demand and supply, to integrate financial planning and operational planning, and to link high-level strategic plans with day-to-day operations.” In many organisations, however, S&OP became a short-term planning process where the past was more often looked at than the future, and the link with strategy was often missing.

Fintech has become a big buzzword lately, although the inter-linkage of finance and technology is not a new concept. We exist in a world where mobile phones are used more than physical branches for banking, and where you can get a loan from a stranger through a peer-to-peer lending model, such as Lendico or RocMyPeer in South Africa. You can even authenticate mobile payments by scanning your face with a smartphone, using the ‘Smile to pay’ service launched by Chinese e-commerce giant, Alibaba.

The prevalence of cyber threats is forcing companies to make tough decisions and quickly, otherwise they stand to lose direct control of data security, says Nathan Desfontaines, a Cyber Security Manager at KPMG South Africa. From coherent mobile information security policies to comprehensive cyber security strategies, the list of what is required from businesses to adequately protect ever-increasing volumes of data is growing. This is because the number of threats, including mobile malware and hacking, is also increasing. Mobile attacks, custom-designed malware and the threat of wearable technology, such as smartwatches, are examples of what businesses need to be aware of these days. Why do organisations need to treat cyber security as a key IT element rather than ‘another’ business risk? Businesses need to move away from believing that cyber security is a point-in-time exercise – a fad that is “hyped up”, or that the threats of cyber-attacks will go away. Once businesses can do this, then we can start to embrace the benefits technology has enabled within the business while dealing effectively with the very real threat of cyber-crime. When it comes to protecting businesses’ information from potential cyber-attacks, businesses need to understand what their “Crown Jewels” are. By knowing what the business has and what it is worth – both to the business and to outsiders – only then will the business gain a better understanding of what information needs to be protected. Trying to achieve 100% security across all facets of the IT estate is a challenge and is bound to dilute the focus on where it really should be – the critical information assets of the business. What are the toughest security challenges for businesses today? A constant challenge that businesses face is having an effective threat intelligence capability assessment, plan and response in place. Most companies would not know if they were being attacked and in most cases, for those who do, they are unable to detect and effectively respond to a breach. The reality is that technology in isolation is not going to ensure a business’s readiness to respond to a breach. Businesses need to have a balanced model of full business IT security including skilled people, embedded practical processes and, a “fit-for-purpose” technology that enhances the ability to detect and respond to a possible breach. What is considered a comprehensive cybersecurity strategy? A comprehensive cybersecurity strategy should start with a detailed classification of the business’s data – as you can’t protect what you don’t know you have. This classification should be followed by an all-inclusive threat intelligence capability assessment so that an effective post-breach response plan can be developed – and continuously updated, as necessary – as without these, the business is essentially “flying blind in an invisible war”. What could be the consequences to not defending your company from threat intelligence processes? Aside from a possible legislative or regulatory financial impact on a business as a result of a cyber-attack, businesses are becoming increasingly concerned around both the financial and reputational impact to their operations and their environment.

CFOs have traditionally not had to engage with IT. The CIO or other IT execs would simply recommend that the company adopt certain technologies without explaining how those technologies benefit the company. Buzzwords about technology and business processes can be impressive or baffling, depending on the level of communication between departments. It has become increasingly apparent that CFOs can benefit from engaging with IT, and that this engagement has a direct impact on profitability.

In the majority of organisations, planning, budgeting and forecasting (PBF) processes are flawed. KMPG’s Charl du Toit suggests that a fully integrated planning process is essential to deliver full benefit and value from the planning process – and help your organisation achieve its goals.

Organisations that have embraced internal audit, employ competent internal auditors and give internal audit the freedom to execute its duty in accordance with the international standards find that it’s not the unwelcome watchdog for which it's sometimes mistaken. In fact, internal audit can confer a competitive advantage, suggests Dr Claudelle von Eck, CEO of the Institute of Internal Auditors South Africa (IIA SA).

Massive outflows of foreign capital from our borders. Slow economic growth and tough global trading conditions. Difficult regulations and red tape. Upscaling private companies in SA is a massive task. But if we’re serious about growing our base of job-creating private companies, something needs to be done. As a nation desperate for job creation, we need to delve deep in order to understand the critical constraints for unlocking growth. These are the thoughts of Louw Barnardt, co-founder and MD of Outsourced CFO, a financial management boutique of CAs which assists private company clients in gaining access to innovative funding solutions. The SAICA SME report states that, “According to SMEs, the main reasons for business failure are overwhelmingly cash-flow related”. A business of any size and in whichever industry needs financial stability to operate sustainably. Aiming to expand is an even more complex objective that requires SMEs to raise growth finance. Taking this into consideration, how can SMEs be expected to operate sustainably as well as grow, if accessing finance proves to be one of their greatest obstacles? The SAICA SME report concluded that SMEs start with too little capital, collect debtors late, are subject to bad debts, and have overheads that are too high. Government expects that 90 percent of new jobs will come from SMEs. Therefore, big businesses and the public sector need to realise that SMEs will be crucial for growth of the fiscus as well as the private sectors turnover. This then concludes that SME growth is not only to the benefit of the SME, but in the best interest of big business and the public sector.

Thomson Reuters, a world leader in providing industry insight and intelligence for businesses and professionals, has launched a brand new website for Africa.

I remember reading somewhere that in order to be successful in business in Africa you need deep pockets, patience, resilience and nerves of steel. Having worked in this space I cannot agree more.

The recently released Deloitte CFO Survey for West Africa delivered various insights gleaned from CFOs operating in Nigeria and Ghana. The report revealed many interesting things, for example, that CFOs in West African countries are more positive about their growth prospects than their Southern African counterparts. It also revealed that they are, however, less optimistic than their East African counterparts. What exactly did West African CFOs have to say?

The legal profession has remained essentially the same for the last few centuries. One could be forgiven for thinking that, other than the introduction of fax and then email for communication purposes, the profession has shown little aptitude for adapting to changing times.

“Here come the auditors” is a rally cry that is often heard in organisations. Being in Internal Audit for twenty-five years I have found that there has always been a distinct sense of rivalry and antagonism between the finance department and Internal Audit. Very much like the Blues and the Reds where we - the internal auditors - are seen to be on different teams, fighting each other. With the winner being the one who can either hold out or the one who can attack and get the results.

“With fraud the devil is often in the detail,” says Susan Breytenbach, a leading partner in EY’s forensic services department. “For the CFO there is a fine balance between not being in the detail, whilst still maintaining control to ensure that the checking gets done by the appropriate level of person to the appropriate level of detail.”

As budgets are reviewed and department heads pressed to justify their spend, Heads of Legal or General Counsels (GCs*) shouldn’t be spared. Legal spend is one budgetary item that need not be as high as it often is. Discerning GCs have their ears to the ground and are aware of the increasing number of cost-saving tools and service providers specifically positioned to help them achieve their goals.

In this Expert Insight, our business advisor in Ghana, Eric Osei, talks CFOs through some investment considerations for international businesses that want to set up shop in the West African country. He outlines the natural resources, investment incentives and advantages of doing business in Ghana.

In this Expert Insight, our business advisor in Ghana, Eric Osei, talks us through the relevant rules and regulations for international businesses that want to set up shop in the West African country. He also outlines the 2-step registration process.

Your business success in Ghana can hinge on the way you speak about your family, the things you use your left hand for and your respect for religion. In this Expert Insight Eric Osei, business analyst and author of the recently published book Doing Business in Ghana, talks us through the sensitivities, intricacies and opportunities.

CFOs should prepare for a new generation of cyber risks which are fast evolving, moving beyond the established threats of data breaches, privacy issues and reputational damage to operational damage, business interruption and even potentially catastrophic losses. A new report – A Guide to Cyber Risk: Managing The Impact of Increasing Interconnectivity – examines the latest trends in cyber risk and emerging perils around the globe.

The National Arts Council (NAC) of South Africa recently received a clean audit and was praised by the Auditor-General South Africa, Thembekile Kimi Makwetu. NAC CFO Dumisani Dlamini is one of our Expert Insight contributors. In this article he discusses 5 things that public sector CFOs should consider in the pursuit of a clean audit.

The African continent has become the most exciting global economic story over the past decade. That narrative has fuelled optimism in its member states, which are now vying for the attention of international investors and businesses. Ghana is one of those countries. In this Expert Insight Eric Osei, business analyst and author of the recently published book Doing Business in Ghana, lists 9 sectors that are great investment ideas.

A fellow adjudicator of EY’s Excellence in Integrated Reporting awards asked me to identify 5 areas where companies should be focussing on in order to improve their integrated reports. This is my response based on my review of the 2014 integrated reports of the 100 largest listed companies and 10 largest state owned companies.

Ghana is generally considered as the well-behaved little brother of Nigeria by CFOs and investors from South Africa and across the globe. In this Expert Insight Eric Osei, business analyst and author of the recently published book Doing Business in Ghana, lists 10 reasons businesses should consider the friendly West African country.

The role of Chief Financial Officer has never been more complex than it is today. This is due to the fact that the CFO’s operating environment is typified by managing stringent regulation, and managing increasing shareholder scrutiny and economic uncertainty.

The establishment of a free trade area in 26 African countries is going to be a revolutionary development for the continent. In this article Venter Labuschagne, Head: Trade & Customs at KPMG, outlines the opportunities and challenges the creation of the Tripartite Free Trade Area (TFTA) provide. By Venter Labuschagne, Head: Trade & Customs at KPMG Africa

African stalwart and Shoprite chief executive Whitey Basson is well known for looking on the bright side of risk in African markets. The tougher the country, the less competition there is likely to be, he maintains. He has benefited not just from early mover advantage in Africa, where the company is the market leader by far, but by leaving nothing to chance.

The CFO has become a very popular animal to study. If you want to learn more about its behaviour in the wild, you can read about CFOs in hundreds of research papers and reports that are available on the web. Most researchers are looking for what the world’s most successful CFOs have in common. So what are they learning as they explore boardrooms and C-suites for signs of typical CFO behaviour?

While spreadsheets allow for the easy design of extensive financial reports with a wide range of analysis and design options, they do have notable limitations.

In January Greg Davis, CFO Africa at the Standard Bank Group, introduced his key principles for doing business in Africa and elaborated on being in control. In the following months he also wrote about interacting and influencing. In this Expert Insight he talks about the fourth and final principle: getting the most out of infrastructure.

How are CFOs and their departments dealing with the digital winds of change inspired by technological advancement and disruptive start-ups? How is the role of the modern CFO adapting to this new environment and what skills are necessary to make these adjustments? These were some of the questions posed at the CFO South Africa dinner and round table event at the Four Seasons Westcliff hotel in Johannesburg on 15 April 2015.

Pornography, obscenity, piracy and your business - there are some things you wish you didn't know about social media...

Embarking on a software upgrade can be a daunting and uncertain task for many CFOs, often clouded in over technical terms and confusing jargon. Regardless of the reason for your upgrade there are basic common components which each CFO should be familiar with before embarking on any software upgrade project.

KPMG Technology Sector Leader for Africa Frank Rizzo delivered a Master Class on trends in data analytics, business intelligence and technology at our Get Smart event at the Johannesburg Stock Exchange on 17 February.

The publication of the new standard on revenue, IFRS 15, in May 2014 is the most significant change to IFRS in the last couple of years. Almost every company earns revenue in some form or other, and for most of those companies revenue is the single largest figure in the financial statements. Preparers need to prioritise getting to grips with how IFRS 15 will impact their business.

Never speak to the tax authority in an African country without an advisor present, make better use of tax incentives and familiarise yourself with the local tax law and the people who enforce it. Those were some of the lessons during the extremely insightful Master Class at Thursday’s Moving into Africa event in the Michelangelo Hotel in Sandton. The CFOs present received a comprehensive overview of African tax affairs by some of the brightest tax minds on the continent, provided by KPMG.

A group of energetic investors, entrepreneurs, bankers and lawyers met at the office of Norton Rose Fulbright in Sandton on Tuesday 17 March 2015 to discuss the massive opportunities FinTech initiatives have to propel change in Africa. They gathering was the founding meeting of FinTech Africa, a new community that aims to provide robust peer to peer interaction, enabling synergies and acting as an incubator for exciting ideas.

In January Greg Davis, CFO Africa at the Standard Bank Group, introduced his key principles for doing business in Africa and elaborated on being in control. Last month he explained the finer details of the second i: interacting. In this Expert Insight he talks about the third principle: influencing.

The raison d'être of organisations is to enable groups of people to work together and achieve what they would be unable to achieve as individuals, on their own. Delegation is an age-old art − of assigning tasks and sharing responsibilities – and is therefore essential to organisation.

One of the key success factors behind the annual CFO Awards is the strong composition of the panel of judges. On 17 February 2015 the panel for the 2015 awards met in a boardroom of the JSE Limited to discuss this year’s process and procedures. “We are truly honoured to have a group of such respected leaders on the panel to decide who are the best CFOs in South Africa at the moment,” said CFO South Africa CEO Melle Eijckelhoff, who convened the meeting.

Line managers in government departments, municipalities and other public institutions should prioritise financial management and public CFOs should help them with that, argues Dumisani Dlamini, CFO at the National Arts Council of South Africa (NAC).

After dazzling the CFOs and other top finance professionals with a barrage of inspiring technological innovations, visionary speaker and entrepreneur Martijn Aslander sounded the clarion call for a people-centered digital revolution. “In the next ten years, the world will have changed more than it has in the last century.”

CFOs were rattled out of their comfort zone yesterday during our Get Smart in 2015 event, hosted at the JSE Limited in Sandton, Johannesburg. In an extremely well-received key note speech, Martijn Aslander - from The Netherlands - told finance leaders they need to adapt or risk becoming obsolete. He talked the audience through a number of exciting innovations and disruptive developments that will change the world within the next 10 years. “In the future it is no longer about what you own or what you do, but it is about your attitude and your ability to adapt.”

Whether social investment is central to your business or not, it is undeniable that all companies have social touch-points, which mean that companies influence, and are influenced by the societies in which they operate.

In January Greg Davis, CFO Africa at the Standard Bank Group, introduced his key principles for doing business in Africa and elaborated on being in control. In this Expert Insight he talks about the second principle: interacting.

In this Expert Insight Fowzia Gamiet, Senior Associate: Financial Recruitment at CA Global Finance deals with the power of social media and calls on Chief Financial Officers to go online and tweet.

This week's Expert Insight comes from Greg Davis, CFO Africa at the Standard Bank Group and one of the nominees for this year's CFO Awards. He shares some key principles for doing business in Africa and elaborates on one of them.

Martijn will be the Keynote Speaker at the CFO South Africa Events February 17th in Johannesburg, February 19th Cape Town, the CFO Awards 2015 and the Fintech Africa Event July 28th and 20 October in Stellenbosch.

Why are CVs of many CFOs ill-prepared, full of mistakes and lacking relevant information? In this Expert Insight Fowzia Gamiet, Senior Associate: Financial Recruitment at CA Global Finance answers this question and tells Chief Financial Officers how it’s done.