The Institute of Corporate Directors (ICD) frequently features “Finance for Directors,” facilitated by fantastic fellows in finance, Freddie Atienza and Freddie Reyes (sorry, word play intended) — both seasoned experts from the institute covering decades of practical experience in world-renowned corporations. This may have been my third time to participate, and it seems to get better over time as the duo applies a Harvard-style Socratic approach among participants who in turn gave fresh insights to what may be deemed as standard topic. Quite necessary to be updated these days. Boards must shape up their oversight of their chief financial officer (CFO). So, what key points should a CFO present in the eyes of a board director?

A high-performing CFO, being the board’s compass in navigating the company’s financial health, risk posture and long-term value creation. In good governance, the board’s expectations from the CFO are not limited to accuracy of numbers — they extend to foresight, accountability, and transparency. THE CFO IS BOTH A STRATEGIST AND A STEWARD, responsible for transforming financial data into insight and guiding the board toward sound, risk-aware decisions that safeguard shareholders’ interests. With reference to the presentations of Mr. Atienza and Mr. Reyes of the ICD, here are a few key points:
1. Strategic and Analytical Reporting

The board expects the CFO to present reports that go beyond compliance. A board-level CFO report should frame financial performance in the context of strategy — covering key initiatives, capital investments, and corporate valuation. The CFO must interpret the results of strategic projects by linking them to profitability, risk-adjusted returns, and sustainable value creation. The audit and risk committees, in particular, rely on the CFO’s independent and data-driven analyses to validate the integrity of financial statements, ensure adequate internal controls, and assess capital efficiency.

2. Budget Forecasting, Monitoring and Recommendations
A well-governed organization demands disciplined forecasting. The CFO must oversee a rolling budget system that integrates departmental inputs and reflects current market and operational realities. Forecast variances — both favorable and adverse — should be explained with actionable recommendations. A good CFO anticipates issues and acts on them, rather than react.

3. Frequency and Content of Board and Committee Reports

Effective financial governance depends on consistent, timely communication. The CFO should deliver comprehensive reports to the audit and risk committees at least two weeks before the board meeting. Committee reports should include summary dashboards of financial performance, major variances, liquidity positions, and significant accounting judgments.

4. Key Ratios, Findings and Policies

Key ratios should be assessed. Some include:

1. Efficiency ratios such as return on equity (ROE), a primary measure of shareholder value

2. Liquidity ratios to determine short-term ability to cover expenses.

3. Leverage ratios to determine debt levels.

4. Profitability ratios to reflect operational efficiency

5. Activity ratios to assess effective inventory management

The CFO should present these and when necessary, recommend board-approved financial policies — covering capital structure parameters, liquidity thresholds, and investment return criteria.

5. Interpretation of Financial Statements and Key Notes

The CFO’s interpretation of the income statement, balance sheet, and cash flow statement must clarify not just what happened but why it happened. The board must be guided through how operational trends affect margins, how depreciation policies impact asset values, and how cash flow patterns reveal liquidity stress or investment opportunities. Explanatory notes — on contingent liabilities, asset impairments, and related-party transactions — should always be discussed in the context of governance transparency and ethical compliance

6. Internal and External Audit Responsibilities

Good governance depends on a robust relationship between the CFO, internal audit and the audit committee. The CFO must respect the independence of internal audit while ensuring full cooperation and timely remediation of findings. Accountability includes monitoring the implementation of internal audit recommendations and reporting progress to the committee.

A CFO is the guardian of financial integrity and the architect of sustainable shareholder value. ULTIMATELY, THE BOARD OF DIRECTORS (THROUGH THE AUDIT AND RISK COMMITTEE CHAIRPERSON) IS RESPONSIBLE FOR THIS AND ACCOUNTABLE IF NOT ACHIEVED.