The finance function of an organisation covers a broad spectrum of activities including planning, organising, accounting for and managing an entity’s finances and financial risks and controls, the preparation of financial statements and external reporting in compliance with accounting standards and relevant laws and regulations, and involvement in strategy development and execution, performance monitoring and communication with stakeholders.
This Competency Framework focuses on the role of the finance function in public interest entities (PIEs). The principles put forth and matters deliberated may also be applicable in varying degrees to other entities including small and medium enterprises. Application for such other entities should be done with the understanding that the discussion in this Competency Framework is focused on the finance function of PIE.
The objective of this Competency Framework is to assist CFOs and stakeholders in assessing and developing the effectiveness, efficiency and competencies of finance functions befitting organisations for the achievement of their desired goals. This Competency Framework serves as a source of reference and impetus in sharpening competencies of staff and enhancing organisational capabilities in meeting future challenges.
The Competency Framework sets out 3 ways to measure the effectiveness and efficiency of a finance function and to identify areas for enhancement and development:
a) Finance Assessment Framework
b) Finance Target Operating Model
c) Indicators / Red Flags Diagnostics