If we have learned anything in the past few years, we learned that we are living through a time where economic headlines change quickly and finance departments must be ready to react to those changes and make informed decisions quickly.
As we near the end of 2023, let us look at some of the trends that APQC has found through our research in anticipating the priorities financial management teams are focused on. Year over year, we have found top priorities reflect a blend of data management, process improvement, and risk management aimed at enhancing overall business performance and resilience.
1. Effective Financial Data Management
A key success driver will always be the ability to aggregate and analyze data so that it is actionable and can be readily used to make quick informed decisions. As we maneuver through uncertain times, this is an important priority for the executives making those decisions. In my experience, financial data management plays a key role in planning, budgeting, and forecasting within an organization. These processes work together to help organizations comprehensively assess and plan for their financial health and enable more strategic decision making.
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2. Process Improvement through Artificial Intelligence (AI) and Generative AI
Process improvement has always been at the forefront of priorities for the finance function. APQC has found that integrating AI and generative AI into finance departments is high on the agenda, but it must be well thought out to avoid any productivity setbacks. AI in finance focuses on optimizing existing processes and generative AI allows for new capabilities. Either way, AI can monitor and adjust data points faster, more objectively, and more consistently than people can, creating an opportunity to reshape the finance function. Knowing what to automate and being able to manage the change can lead to new levels of productivity and performance if done correctly. Companies will be spending a fair amount of time in 2024 monitoring the success of AI and generative AI in finance departments.
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3. Risk Management
Due to increasing complexity and volatility in the global business environment, risk management is a top priority for finance departments. Whether it is market risk, credit risk, liquidity risk, operational risk, or cyber risk, being able to navigate these complexities and safeguard the organization’s financial health has required more emphasis and focus to identify future problems. Since governance is key to the success of a risk management program, many will be spending time ensuring that the proper policies are in place and the objectives are met.
As we navigate through the complexities of the current financial climate, finance departments continue to gear up to be more agile and data-driven while keeping a firm grip on the company’s financial health through governance, technology, and process improvements.
To help us gain a clearer perspective on anticipated priorities, challenges, and trends in finance for 2024, please take our survey. We will share the results early next year.