Navigating uncertainty: How CFOs can build resilience in a volatile 2025
Finance leaders are navigating economic and geopolitical challenges. Recent policy changes under the new Trump administration have added to already high global uncertainty and market unpredictability.
Navigating the current landscape is all about risk mitigation. However, according to OneStream's Finance 2035: Return to Investment report, Australian CFOs are prioritising internally-driven priorities such as cost management, efficiency and managing business operations over outward-looking initiatives such as overall business strategy and risk management.
While it is heartening to see Australian CFOs have not become overly focused on the doom and gloom amidst heightened macroeconomic uncertainty, it is important that finance teams can effectively guide their organisations through this disruption while ensuring long-term financial stability.
Managing risk in uncertain times
Many CFOs continue to face challenges from fragmented data sources, outdated legacy systems, and limited real-time visibility into financial performance. OneStream's research shows that 76% of Australian CFOs believe having a unified data platform helps them respond more quickly to changing market conditions. Embracing transformation is not just about modernising systems - it's about gaining the clarity and agility needed to guide smarter, faster decisions across the business, especially in an environment where speed and precision matter more than ever.
However, the office of Finance has typically been slow to adapt to technology changes. This challenge is underscored in the report, which found that 74% of Australian CFOs see legacy systems and technology limitations as major obstacles to adopting a more strategic role.
Over-reliance on outdated systems can cause data discrepancies, compliance gaps, and missed opportunities.
The key lies in a gradual approach to digital transformation. These improvements include automation, AI-driven forecasting, integrated business planning and implementing unified data systems. Taking these steps helps finance teams adapt more quickly to economic shifts while minimising implementation risks. Unified data systems can consolidate data and help create a single source of truth that businesses can rely on, to make the process of using data easier.
Building resilience through real-time insights
Resilience in finance is about anticipating challenges and adapting to them quickly. However, many finance teams struggle with fragmented data sources, making it difficult to gain a clear, real-time picture of their businesses' financial health. Without a full view, many remain reactive, unable to shift into a strategic role.
OneStream's research shows that 79% of Australian business leaders believe CFOs are struggling to prioritise growth due to the overwhelming amount of data they must decipher, often relying on disconnected systems that make strategic planning more difficult.
AI-driven scenario planning helps finance teams model outcomes and adjust accordingly and make informed decisions based on a comprehensive approach, with the agility to adapt to changing headwinds.
The evolving role of finance professionals
AI and automation are not just streamlining workflows – they are reshaping the role of CFOs and their teams altogether. By automating routine tasks such as data reconciliation, reporting, finance professionals can now focus on higher-value strategic work. This shift enables finance to contribute strategic insights and drive innovation rather than being slowed by repetitive tasks.
Finance professionals can now take on more advisory and analytical roles. Their function moves beyond number-crunching and focuses more on strategic advisory, driving business direction through problem-solving, forecasting, and data-backed decision-making.
But technology alone isn't the solution; finance teams also need the skills to leverage it effectively. As AI and advanced analytics reshape decision-making, finance professionals must be able to interpret data and turn insights into action. That's why continuous upskilling is important as it ensures teams can maximise new tools and drive real business impact.
Not only does this maximise team effort, but it will also attract more talent to an industry that is struggling to bring in young talent. With 75% of Australian CFOs identifying skills gaps in the finance department as a significant barrier to growth, highlighting the variety of the role will make it more attractive to generations craving jobs that are technology-first.
The competitive edge of a modern finance function
Staying competitive through modernisation and upskilling isn't just valuable for a finance team's agility. It also helps strengthen investors' confidence in the business. Investor expectations have evolved, and financial leadership is now a key determinant in investment decisions. CFO competency is the top-ranked factor for Australian investors considering where to invest. It's not surprising, then, that the path from CFO to CEO is becoming more and more common. In 2023, the global percentage of CEOs who were once CFOs increased from 21% in 2019 to 30%, according to analysis from executive search firm Heidrick & Struggles. The same trend was reflected in SpencerStuart's data for Australia which showed that 36% of ASX 100 CEOs have held a background in corporate finance, M&A or investment banking, and 42% have previously been a group, divisional or regional CFO.
Digital transformation enhances agility, ensures compliance, and builds a resilient organisation ready for uncertainty.
From AI-driven forecasting to real-time scenario planning, the tools are there to help CFOs and their teams take a more proactive role in shaping the future and to support their roles. Companies that embrace this shift will become more resilient, more adaptive and better positioned to attract investment and talent in the long run.
