The Modern CFO: Balancing Sustainable Growth, Risk, and Transformation

Financial leadership is changing rapidly. CFOs remit has expanded beyond financial stewardship to include digital transformation, risk management, sustainability. Today’s finance leaders are expected to be business strategists, tech adopters, and cultural champions—all while maintaining financial resilience in an unpredictable market.

But with the average tenure of CFOs reaching a five-year low of 5.6 years, there is even more pressure for leaders to deliver. Shorter tenures mean CFOs must make an impact faster, balancing short-term financial performance with long-term strategic transformation.

At Cedar, our CFO roundtables have provided invaluable insights into these shifting dynamics. A key theme that continues to emerge is that people are just as critical as financials when it comes to driving success. The ability to attract, develop, and retain high-calibre finance talent is becoming a decisive factor in how effectively businesses can navigate transformation and uncertainty.

Given this increasing expectation, what will the focus be for CFOs in the coming year, and how are their priorities evolving?

1. Financial Resilience & Risk Management

In today’s climate, financial resilience is non-negotiable. CFOs are focused on building strong, flexible financial frameworks that can withstand market shocks. Strengthening balance sheets, managing cash flow, and ensuring liquidity are essential to preparing for the unexpected.

Beyond financial risk, regulatory complexity and cybersecurity threats continue to increase. According to a Gartner survey, 70% of CFOs are leading or co-leading their organisation’s enterprise risk management strategies, demonstrating a shift towards proactive financial governance.

“Resilience isn’t just about financial preparedness—it’s about having the right people in place to navigate uncertainty and drive strategic outcomes.” Chris Morrison, MD at Cedar

2. Cost Optimisation & Long-Term Value Creation

Cost optimisation is no longer just about cutting expenditure—it’s about aligning spending with long-term strategic goals. CFOs are moving from reactive cost-cutting to sustainable cost management, ensuring efficiency measures enhance, rather than hinder, growth.

Only 43% of cost-saving initiatives achieve their targets in the first year, and only 11% sustain these savings for three consecutive years. This highlights the need for CFOs to take a more strategic, data-driven approach to cost control.

CFOs are now being described as “Value Architects,” responsible for balancing short-term performance with long-term value creation—leveraging sustainability, AI, and strategic investment decisions.

3. Digital Transformation & AI Adoption

Technology is reshaping the finance landscape. From AI and machine learning to advanced data analytics, digital tools are revolutionising decision-making and improving forecasting accuracy.

CFOs are already seeing the benefits of automating repetitive tasks like invoicing and reporting, to free up resources for higher-value activities, reduce human error, and increase operational efficiency.

When it comes to how advanced analytics, reporting and AI tools will shape the size and skills of finance functions, many businesses are in pilot phase. But CFOs are reporting in-house gaps, and the Financial Services Skills Commission confirms that AI, automation, and data science are among the most in-demand skills for finance professionals today.

4. Talent Management & Reskilling

With AI adoption reshaping finance roles, finance leaders are focused on reskilling and upskilling employees to ensure they can effectively leverage new tools and methodologies.

A shift to skills-based hiring is allowing employers to better predictive on-the-job success rather than just a CV.

As finance evolves, hiring based on technical expertise, adaptability, and analytical capabilities will be key to building resilient teams.

“The speed of change in finance means reskilling is no longer optional. CFOs need to invest in future-proofing their teams to keep pace with technological and regulatory shifts”. Chris Morrison, MD at Cedar

5. Sustainability & ESG in Investment Decisions

At our recent Cedar CFO roundtable, finance leaders emphasised that ESG is no longer a compliance tick-box—it’s an essential component of financial strategy.

Private equity firms and institutional investors are prioritising ESG credentials in investment decisions, while the EU’s Corporate Sustainability Reporting Directive (CSRD) mandates greater transparency. Meanwhile, AI and digital tools are enabling CFOs to track sustainability performance more effectively, integrating financial and non-financial reporting.

CFOs are in the driving seat when it comes to embedding sustainability into financial strategy. Those who align ESG with commercial objectives will gain a real competitive edge.

6. Strategic Growth & Innovation

With financial resilience, cost optimisation, technology, and talent strategies in place, CFOs are focusing on future-proofing their organisations through growth and innovation.

According to EY’s M&A outlook, global M&A activity is expected to rise 10% in 2025, following an anticipated 13% increase in 2024. Declining interest rates and strong economic conditions are driving a resurgence in deal-making, particularly in high-growth sectors like technology and financial services.

Finance leaders must carefully balance risk, opportunity, and investment strategy to capitalise on these trends and drive sustainable growth.

7. Agility & Adaptive Leadership

The accelerating pace of change requires CFOs to be more agile than ever. Scenario modelling, real-time financial planning, and data-driven decision-making are essential to adapting to economic shifts, consumer trends, and regulatory challenges.

Agility also means embracing cross-functional collaboration, navigating complexity, and learning from peer networks to ensure finance functions remain forward-thinking and adaptable.

Chris Morrison summarises:

“CFOs today are under immense pressure to balance multiple priorities—safeguarding financial stability, embedding technology, driving sustainability, and developing high-performing teams. As finance undergoes yet another transformation, the value of peer networks and shared learning has never been greater.”

About Cedar 

Cedar is a specialist recruitment consultancy, partnering with organisations to attract and retain exceptional finance talent. We specialise in Finance, Tax, Change & Transformation, Procurement & Supply Chain, and Pubic Sector & Not-For-Profit, ensuring businesses have the expertise they need to thrive in an ever-changing landscape.