Dipak Golechha, CFO of Palo Alto Networks, discusses the expanding CFO mandate, leading finance in volatile environments, and grappling with AI and new technologies. Topics include transition to cybersecurity, impact of historical norms on decision making, evolving finance function, AI in finance, and talent development.
CFOs now have a broader mandate and play a crucial role in shaping company strategy in highly volatile business environments.
CFOs need to understand cybersecurity implications, drive innovation, and integrate it into enterprise risk management and controls frameworks.
Deep dives
The Expanding CFO Mandate
The role of the CFO has evolved significantly, with increasing responsibilities and expectations. CFOs are now seen as the pivot point for stakeholders, requiring them to have a seat at the table and be the voice of objectivity. Finance is becoming the central function for ensuring objectivity in decision-making across various departments. CFOs are taking on a broader mandate and playing a crucial role in shaping company strategy.
Navigating Volatility and New Technologies
CFOs are leading the finance function in highly volatile business environments. They are grappling with the challenges and opportunities presented by new and emerging technologies, such as AI. The CFO's role is to understand the implications of these technologies, drive innovation, and find ways to leverage them for the finance function's benefit. This requires asking critical questions and challenging existing processes to unlock value.
The Dual Mandate of the CFO
The CFO's role involves supporting the business while also playing a stewardship role for the company. Finance is the only function that can see the big picture and is involved in almost everything. The CFO's primary responsibility is total shareholder return, which aligns with their expertise. Finance ensures financial discipline and guides decisions based on top-line growth, margin improvement, cash flow, and capital structure optimization.
The Importance of Cybersecurity for CFOs
Cybersecurity has become a critical concern for CFOs. With the increasing digitalization of businesses, the attack surface for hackers has grown. CFOs need to understand the cybersecurity posture of their organizations and work closely with Chief Information Security Officers (CISOs) to protect critical data and mitigate risks. CFOs should be knowledgeable about their company's cybersecurity strategy, identify crown jewel data, simplify complexity, and integrate cybersecurity into enterprise risk management and controls frameworks.
Dipak Golechha is the Chief Financial Officer of Palo Alto Networks, a leading cybersecurity company. This episode features a conversation between Dipak and Eric Kutcher, our own CFO.
Dipak and Eric discuss their experiences around the expanding CFO mandate, what it’s like to lead the finance function in a highly volatile business environment, and how they’re grappling with AI and other new technologies.