Bermuda is a leading offshore jurisdiction and often referred to as The World’s Risk Capital. Most of the companies operating in its international business sector will be in financial services (in particular, Insurance) and have, as part of their executive team, Chief Financial Officers.
The responsibilities of a CFO are far more extensive than number crunching or bean counting of popular imagination. Because all financial decisions go through them, CFOs also take on key leadership responsibilities, and may also be Board members. Let’s begin by taking a closer look at the actual role of a Chief Financial Officer in Bermuda.
The role of a Chief Financial Officer
Some of a CFO’s core responsibilities are what you would expect: analyzing company results, reviewing its performance, and overseeing the proper recording all business-wide financial transactions. The CFO will be in charge too of managing areas such as tax, investments and debt management.
And, because of the strict rules regarding company finances (for example: GAAP, Bermuda Monetary Authority regulations), CFOs have to be up to date with local, national and international reporting regulations to ensure proper compliance.
CFOs must be able to use digital tools to create accurate forecasts and budgets, and to model potential scenarios so that the business optimizes its operations and profitability. FinTech (e.g. InsureTech) is an example of a relatively new digital field in which all CFOs need to become well versed.
Skills and qualifications
Required qualifications vary from company to company. That said, there are certain hard skills and soft skills that are always sought after:
- A bachelor’s degree in business administration, finance and accounting, or in another finance-related field, together with an ACA/CA, CPA or ACCA designation
- Possession of an MBA allows you to further technical skills as well as gain knowledge of leadership and management skills
- Short courses enable CFOs to keep up with the latest in technologies and compliance. They can also help expand skills into areas such as strategic business management and business risk management
- Modern digital skills include Microsoft Excel/Google Sheets, and programs like QuickBooks Enterprise and ADP Workforce Now. Proficiency in big data analysis and cloud computing is also advantageous
- On the soft side of requirements, CFOs must be excellent communicators. They need solid leadership skills, and have to be able to work well in teams
- For a CFO to excel, they must also be able to see the bigger picture and make business decisions that encourage growth and success. For this, a strong worth ethic is required together with outstanding problem-solving skills
Getting a job as a Chief Financial Officer in Bermuda
When you look at the career trajectory of CFOs working for Fortune 100 companies, you see that 69% were promoted internally and 70% had more than 10 years with their current company (in fact, many companies prefer between 10 and 15 years).
Regarding the path to power, if you hold one of the following positions, the role of CFO is often just a logical step up: Finance Director, General Manager, Operations Manager, Director of Operations, and Director of Administration.
In Bermuda, CFOs are promoted from within the entity – such as highlighted in the steps above – or headhunted from a similar organization either on the Island or in another jurisdiction, often with the assistance of an executive search firm. For accountancy practitioners at senior management level in public practice, taking an assignment as an interim CFO for a client company can be a useful way of making their transition across into industry.
We’ve put together a list of things you can start doing now to help make the transition to CFO: 9 Steps to Becoming a Chief Financial Officer
We’ve put together a list of things you can start doing now to help make the transition to CFO: 9 Steps to Becoming a Chief Financial Officer
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