CFOs are hiring more outside consultants (CGMA Magazine)
The dizzying pace of technology and competitive change is leading to a rapid increase in risk, compliance, HR, and IT spending.
To ensure that companies remain competitive, CFOs are being forced to quickly and efficiently hire outside consultants.
Whether it's for new business systems, performance management initiatives, governance, or other needs, the wide base of knowledge required to perform mounting tasks has led to an increase in outside consultancy.
In many cases CFOs are hiring short-term workers to fill a certain need. In other instances, they are relying on consultants to fill a key role.
A recent Robert Half survey found that 61% of CFOs plan to bring in consultants in the next 12 months.
American Airlines CFO says company has too much cash (Dallas News)
American Airlines CFO Derek Kerr admits that the airline is holding on to its cash, but it's not because the company is being frugal.
The airline is still in the middle of fully integrating all of its employees from the 2013 merger of US Airways, an integration that requires both time and money.
Kerr also notes that American is pouring $2 billion into product improvements and "returned $1.63 billion to its shareholders through $67 million in quarterly dividends and the repurchase of $1.56 billion of common stock."
American Airlines is also planning to replace all of its older airplanes and expects delivery of about 100 new jets in 2016.
The company also continues to borrow money because of historically low interest rates.
Ford Credit CFO Michael Seneski has been moved into a strategy role (Business Insider)
Seneski will report directly to Ford's head of global strategy, Group Vice President John Casesa.
In his new role he will coordinate the business direction of the company globally, including its strategic planning process, and key partnerships identification and integration.
Seneski was largely responsible for helping the Ford Motor Group avoid bankruptcy during the 2008 financial crisis. He secured $5.9 billion from a US Department of Energy loan during a pivotal moment in the company's history.
Seneski has worked at Ford for the last 23 years.
Immature cybersecurity systems can be very costly to your company (CFO.com)
Were you aware that it takes 205 days on average to realize someone has breached your company's firewall?
CFO.com reports that 90 million cyber attacks have already cost corporations $575 billion. While that number is more of a "guesstimate," it highlights the high cost of doing business without proper security protocols in place.
The report speaks to the dangers of allowing security protocols to fail. Nortel, a Canadian telecom giant, went broke largely in part to intellectual property being stolen. Target is likely to be sued by customers who had their credit card details stolen. Target's CEO eventually stepped down over the breach.
A report by Bank of America Merrill Lynch says cyber security has become a $75 billion a year industry and will increase to $170 billion by 2020.
CFO.com warns that quality of each products varies widely, but says the cost to entry is low and the need to secure systems has reached an all-time high.