There are many things shaking up our world today: the threat of recession, the energy crisis and climate change, fluctuations across the world in geo-politics and wondering where we’re all heading with AI and other technological disruptions. As soon as we’ve got used to one “new normal”, we’re hit by the next one. Frontiers are continuously changing, making for exciting and yet increasingly complex times. For businesses across the world, this creates opportunity and uncertainty in equal measure which, in turn, can contribute to financial instability.
What does economic turbulence mean for a business?
From a financial perspective, economic turbulence can have a profound and far-reaching effect. The business may struggle to access capital and have to deal with inflationary pressures or fluctuating exchange rates, contributing to cash flow problems and reduced investment.
To be an effective CFO in such times requires both an understanding of the causes of financial turbulence, and knowledge of how to act and navigate the unstable conditions around us. So, how do we create and maintain value in these challenging times?
The answer lies in striking a balance between being a proactive and reactive leader. Planning for the future and looking at major themes in a strategic way, whilst also embedding organisational flexibility to help the business react, adapt and, in some cases pivot, depending on fast-moving external events.
The strategic (and proactive) CFO
We’ve previously written in other blogs about the increasing importance of the CFO being strategic in their role, and there’s no doubt that a solid financial strategy aligned with business objectives will help you through economic turbulence. No longer just a financial steward, the CFO must actively work with the rest of the C-suite, meaningfully contributing to the strategic plan and the direction of the business. CFOs take a key role in shaping the business and must possess a deep understanding of both the internal and external factors that drive its success. Not only this but translating financial data into actionable insights is an essential CFO skill.
What are the proactive actions a CFO can take? By anticipating downturns, changes in market trends and shifts in consumer behaviour, a CFO can prepare a business through scenario planning, financial analysis and stress testing. Other proactive actions might involve diversifying investments, a cost-cutting programme or investing in technology to improve efficiency depending on the needs of the business and in line with the business strategy.
Good communication about these different scenarios can equip the leadership team, internal staff and external investors with the information required so that “planned for” events don’t come as a surprise if and when they might happen. Of course, you can’t plan for everything, which we’ll cover next, but looking beyond the quarterly figures, annual projections and day-to-day stewardship is an essential action for today’s strategic CFO.
‘The role of today’s CFO encompasses the diverse breadth of the organisation with the potential to be a catalyst for transformation. To operate effectively at the C-suite requires a blend of a proactive mindset together with adaptability, curiosity, strong communication, relationship building skills and the ability to guide strategic discussions.
Successful CFOs proactively plan for the unexpected through comprehensive risk management and BCP scenarios. My favourite recent example is the champagne house which imported 15 months of sales volume into the US during the quarter prior to “Liberation Day”, on 2 April 2025.
In exceptional circumstances, even the very best CFOs have to react. One difficult example occurred in late March 2020, with the implementation of the furlough scheme. A fundamental reset was required across the whole organisation; budgets were re-written and cash balances were conserved’. Charlie Whinney, CFO
The nimble (and reactive) CFO
But what about the curveballs? Economic conditions, changes in regulations and new markets can change the business paradigm swiftly. So, alongside creating a solid financial strategy, a successful CFO must be agile enough to adapt strategies as new information becomes available. Reactivity allows businesses to pivot quickly, minimising losses and seizing new opportunities.
A lot of reactivity can come from the CFO driving innovation and embedding resilience and knowledge sharing into the business so that it becomes forward thinking, enabling teams to react swiftly, without fear of failure. For this, the CFO must be a cross-department collaborator, helping the organisation compete better and become more responsive to emerging opportunities and threats.
A core focus for the CFO should be the development of resilient teams using techniques to foster a culture where people feel safer experimenting and innovating to improve the business.
The reality of today’s business environment calls for the CFO to embrace new ways of working. Financial and business prowess are still essential, but with the use of new technology and financial algorithms, financial planning and modelling has become easier. This means that the modern CFO can take a more all-encompassing view that shows the internal financial performance of the company in the context of the market as a whole. With increasing amounts of information readily available, the CFO is equipped to be both strategic and agile in the face of uncertainty.
At The Siena Partnership, we work with our clients to recruit top finance professionals who can guide their organisations through complex economic challenges. If you’d like to continue the conversation with one of our finance experts, Jake Bush, contact him here: