How Allstate India’s CFO Hema Nevetia is driving financial agility and innovation

As the financial landscape grows increasingly complex, the modern CFO is no longer confined to traditional stewardship. Instead, they are emerging as architects of innovation, drivers of agility, and custodians of sustainable growth. Allstate India’s CFO Ms. Hema Nevetia exemplifies this evolution, seamlessly integrating financial governance with bold strategic initiatives. 

In this exclusive interview with CFO India, she unpacks the art of balancing agility with accountability and leveraging technology for resilience —offering fresh insights for finance leaders navigating the shifting sands of today’s economy.

Below are the edited excerpts:

Q. How do you view the evolving role of finance in enabling innovation while ensuring financial rigor? What lessons can other CFOs draw from this dual mandate?

Hema: Over the past decade, the role of the CFO has evolved significantly, transitioning from a traditional stewardship function to a true strategic partnership with the CEO and other leaders. This shift empowers CFOs to drive business growth and competitive advantage. As we look ahead, this partnership will only deepen, focusing on digital transformation and leveraging data analytics to extract actionable business insights focusing on long term value creation over short term gains.

Key lessons for CFOs include:

• Cross-functional collaboration: CFOs must work with diverse teams to ensure innovation aligns with organizational goals. A structured risk management framework can balance experimentation with financial prudence.
• Embracing technology and automation: Leveraging AI, ML, and RPA not only streamlines financial processes but also frees up time for strategic initiatives.
• Clear success metrics: Establishing KPIs and communicating the value of innovation to stakeholders ensures alignment and secures buy-in for initiatives that often involve upfront costs and uncertain payoffs.

Q. In an environment where agility is critical to delivering services, how do you ensure financial governance without stifling innovation?

Hema: Agility and robust financial governance can coexist, but it requires a rethinking of traditional frameworks. CFOs should adopt principles that support rapid decision-making while maintaining oversight. For example:

• Flexible financial governance: Decentralized decision-making within defined financial parameters enables responsiveness without sacrificing control.
• Clear financial principles for innovation: A tiered investment approach ensures proportional oversight based on the scale and risk of initiatives.
• Real-time transparency: Dashboards, KPIs, and regular reviews provide actionable insights, allowing teams to pivot quickly when progress deviates from expectations.

The key is embedding financial accountability as a facilitator of innovation, rather than an obstacle.

Q. Managing finances for a global enterprise often requires alignment across geographies. What strategies have you employed to harmonize financial planning at Allstate India with the broader corporation?

Hema: Effective global financial planning hinges on standardization, alignment, and adaptability:

• Standardized frameworks: A consistent financial planning and reporting structure ensures clarity across geographies, while local teams retain autonomy for compliance with regional regulations.
• Currency and regulatory navigation: Currency volatility is mitigated through hedging and budgeting strategies, tailored in collaboration with the global treasury. Regulatory differences are addressed via local compliance teams supported by automated tools for seamless adherence.
• Unified goals: A balanced scorecard integrates local and global objectives, ensuring alignment and fostering a cohesive approach across the enterprise.

This harmonization enables agility and resilience in an increasingly volatile global environment.

Q. As economic uncertainty becomes a global constant, what financial practices have you implemented to build resilience into operations?

Hema: Resilience in operations is built on financial agility and preparedness. Practices include:

• Strengthened cash flow management: This involves robust treasury strategies and liquidity forecasting.
• Scenario planning and stress testing: Running simulations for potential shocks—whether economic downturns or regulatory changes—enables proactive planning.
• Operational efficiency through technology: Automation reduces costs and accelerates scalability without a proportional increase in fixed overheads.

Having contingency plans ensures we’re not reactive in crises but equipped for swift recovery.