Mastering the matrix: CFOs in a multipolar world

At the recent 15th annual CFO100 Conference in Mumbai, a candid debate unfolded: how does a chief financial officer (CFO) steer a company through an era where geopolitical tremors, technological disruption, and climate imperatives render traditional playbooks obsolete? The consensus? Agility is no longer optional—it is existential.

We were joined by three finance stalwarts, Kannan Sugantharaman, CFO, Omega Healthcare; G. Sambasivan, CFO, Tata Play; and Sugata Sircar, Ex-CFO, Schneider Electric; currently Executive Director with Azure Power. The discussion was expertly moderated by our Managing Director, Ms. Anuradha Das Mathur. 

The end of the three Cs

For decades, the CFO’s mandate revolved around the “three Cs”: cost, control, and compliance. Yet, as Kannan dryly noted, “If finance teams remain shackled to these, they risk irrelevance.” Boards now demand more than ledger-balancing automatons; they seek strategists capable of decoding volatility. The rise of AI and automation has relegated transactional tasks to algorithms, freeing CFOs to deal with murkier challenges: cyberthreats, supply-chain reconfigurations, and the looming spectre of mandatory ESG frameworks. Sambasivan slashed a $400m import exposure by reimagining his supply chain as a geopolitical chessboard. “The Excel sheet,” he remarked, “is no longer a sanctuary.”

From ROI to LOP: The calculus of uncertainty

A recurring theme was the tension between quantitative dogma and qualitative leaps. When investments in AI, cybersecurity, or ESG defy neat ROI projections, CFOs must embrace what Sambasivan termed the “leap of faith” (LOF). One of his initiatives, predicated on such faith, digitised their risk management—a move that paid dividends during pandemic-era disruptions.

But how to reconcile this with finance’s numeric spine? Sugata pointed to shifting stakeholder demands: “Employees and investors now value diversity metrics or carbon footprints as much as margins.” The implication: CFOs must curate narratives that blend hard data with societal impact—a skill closer to storytelling than accounting.

Geopolitics: The new P&L driver

The multipolar world order dominated discussions. As Western markets cede hegemony, CFOs confront a fragmented landscape: U.S.-China decoupling, friend-shoring, and the scramble for alternatives like India or Mexico. Yet, as Sircar cautioned, “Geopolitical tailwinds don’t guarantee success.” When China lost $100bn in U.S. exports post-tariffs, India captured less than 30% of the spillover.

The lesson? Opportunism requires preparation. Morgan Stanley predicts India’s manufacturing base could triple by 2030, but only for firms proactive in lobbying for infrastructure, talent, and policy incentives. For CFOs, this means recalibrating capital allocation—opting for project financing, bridge equity, and partnerships with deep-pocketed development financiers.

Case study: Healthcare’s innovation-compliance tightrope

Kannan’s sector—healthcare—epitomises the innovation-compliance paradox. He envisions a future where hospitals profit not from treating patients but from keeping them healthy via wearable tech and predictive analytics. Yet, this hinges on navigating data-privacy laws still in their “kid-gloves” phase in emerging markets. India’s lax enforcement (where lab technicians freely interpret diagnostic results) contrasts starkly with Western rigor. “Ironically,” Kannan mused, “this regulatory ambiguity might accelerate India’s adoption of preventive care models faster than in the U.S.”

The CFO’s new toolkit

As the session closed, three imperatives crystallised:

1. Technological fluency: Mastery of AI, cybersecurity, and data analytics is non-negotiable.
2. Policy acumen: Understanding regulatory shifts—from carbon tariffs to data-localisation laws—is as critical as reading balance sheets.
3. Strategic storytelling: Translate uncertainty into boardroom strategy, blending numbers with narrative.

Kannan left peers with a wry provocation: “The CFO’s ultimate goal? To make oneself redundant.” His point: only by automating the mundane can finance leaders ascend to their new role—architects of resilience in a world where change is the only constant.