CFO Series: Decision Making in an Irrational World

Overview

The CFO Series provides a convenient, one-stop way for CFOs and those who aspire to be CFOs, to earn an entire year of CPE with a single decision, featuring high-quality presentations and an interactive, executive level colleague-to-colleague approach with case studies, group discussions, and team exercises.

Highlights

What can we do when the world changes constantly? This four-topic course spotlights various methods to enhance decision-making in a dynamic, ever-changing environment, focusing on proven and new risk reduction techniques. Take an in-depth look at the practices that work and the ones that do not. The focus is straightforward: understanding risk and getting the most return from risk reduction with verified approaches to increase profitability.

Module 1: Acute Uncertainty Will Never Go Away: Can We Prevent Our Plans from Failing?

Perfection is fantasy and we must accept uncertainty. Most of our plans are useless and outdated within weeks after we think they are ‘finished’. Instead, we must change our way of thinking in a world where change is normal - and use better ways to plan. Some risks can be quantified, but most cannot. Some hazards are measurable, most are not. Discuss multiple tactics to minimize, as best as practical, threats and gambles so we can feel better about our decisions. We can do better at planning and dealing with uncertainties, but it is impossible to be perfect.

Module 2: Decision Making in a Non-linear World: What They Did Not Teach in Management Accounting

All decisions are about the future, and the future is uncertain. In today’s world, unpredictability is the rule, not the exception, and making business decisions can feel like rolling dice with ever-changing odds. We need better tactics and tools to improve our decision-making process. We must challenge the decision-making process itself, outdated assumptions, and uncover fresh insights that transform how we plan, decide, and succeed, showing that uncertainty doesn’t have to mean instability - it can be the catalyst for smarter, stronger decisions.

Module 3: Advanced Financial Analysis: Choosing the Right Tools in a World Full of Randomness

Humans are hard-wired to fear uncertainty, but we can learn from the ambiguity that is common today. The upside of uncertainty is that it is the gateway to new possibilities, including new tools. The analytical tools we currently use were designed for the physical world, but today we live in a data-driven digital world, especially for those in the service economy. What are the best tools to deal with unknowns and ambiguity in today’s environment? Learn how to use the right tools in the proper manner.

Module 4: Diversification: A Risky or Risk Averse Strategy

Diversification is often seen as a safe strategy to reduce risk, but when misused, diversification actually creates greater risk. Many organizations fall into this trap, with costly consequences. The intention for diversification is critical. Many organizations misuse diversification, and the blunders have been staggering. What lessons can we learn? How can diversification be implemented to achieve the intended goals? One key is to use a holistic approach, which we will elaborate and explain, only then will diversification be advantageous. Leaders, the board, auditors, and team members must be aware of the myriad issues of diversification. Done right – diversification is a boon. Learn what to do, how to do it properly - and what not to do.

Prerequisites

Participants should have at least six months of industry or public experience and a thorough knowledge of financial accounting principles and practices. Management experience is helpful.

Designed For

Financial leaders, regardless of title, who are, or aspire to be, chief financial officers. Discussions will be geared towards those working in medium-sized organizations.

Objectives

• To understand that uncertainty is normal and what we can do about it. 
• To understand that precision is not the same as accuracy. 
• To accept that unpredictable events are not outliers – they are normal. 
• That understand that resiliency must be built in.
• To understand why and how our current decision-making process is flawed? 
• What are some of the better plans and approaches to minimize uncertainty? 
• To understand why we need better tools to help inform decision makers. 
• How to use some of the more appropriate tools to use to help augment financial analysis in today’s environment?  
• To learn methods to navigate complexity and better plan for change.
• To understand why diversification usually increases risk. 
• To learn the proper, effective way to diversify to reduce hazards?

Notice

Note: This course is a live virtual replay.