What are the major challenges facing Finance Directors in 2023?
Market conditions in 2023 couldn’t be anymore different than those at the start of 2022. Equally, the stock market has gone from high levels of pessimism to suggesting it feels talk of recession has been overdone. The Bank of England too is struggling to work out how it feels the UK will perform. Finance Directors of high growth firms in the London-Oxbridge golden triangle will need to be agile in their thinking. There will be many opportunities, but what are the challenges they face?
- Staff Shortages: The shortage of skilled finance professionals has become a major challenge for FDs. Finding and retaining employees with the necessary skills, experience, and knowledge can be difficult, particularly as more and more companies are competing for the same talent. The BOE is now predicting that the available talent pool will remain smaller than pre-pandemic
- Technological Disruptions: The rapid pace of technological advancements has disrupted many traditional finance processes and systems. FDs must keep up-to-date with the latest technologies, such as Artificial Intelligence and Big Data, and find ways to integrate them into their organisations
- Cybersecurity Risks: As companies become more reliant on technology, the risk of cyberattacks and data breaches increases. FDs must ensure that their companies have the necessary cybersecurity measures in place to protect their assets, customer data, and reputation
- Brexit: Brexit is still causing headaches, particularly for exporters and those who operate in Northern Ireland
- Economic volatility: As mentioned, the economic landscape is volatile vs. the stability of the years between the financial crisis and the pandemic. Inflation, interest rates, exchange rates, are all more volatile that pre-pandemic
Most firms will be working hard to deliver on their 5-year plans, which look more achievable if the UK misses a large recession, but the pressure on Finance Directors to deliver will continue.
About Fram's Finance practice
Our specialist Finance Practice focuses on qualified permanent & interim placements from newly qualified through to Finance Director. We also have strong networks with M&A professionals.
Contact us on [email protected] or call 01525 864 372 for an informal chat about our services.
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