ESG Risk: From Boardroom Decisions to Bottom-Line Impact ESG risks have emerged as a critical concern for finance professionals. From devastating wildfires and labor strikes to regulatory fines and reputational damage, ESG risks pose tangible threats that finance professionals must actively manage to protect their organizations’ financial stability and market position. As ESG disclosure regulations…
A Practical Introduction to Narrow vs. General AI Artificial intelligence (AI) has become an integral part of our daily lives, powering everything from voice assistants to fraud detection systems. But not all AI is created equal. In fact, there are two distinct categories of AI that are critical to understand: Narrow AI and General AI. …
Why We Use Sensitivity Analysis in FP&A Have you ever wondered how businesses prepare for uncertain business conditions, from fluctuations in raw material costs or potential sales volume? In FP&A, analysts rely on sensitivity analysis to test assumptions and predict outcomes. For those new to FP&A, mastering this skill can set you apart early in…
The Strategic Advantage of Using AI in Finance Your finance expertise, combined with knowing how to use AI in finance strategically, creates an unbeatable advantage in today’s hyper-competitive market. As artificial intelligence reshapes the finance profession, the key to success is implementing AI tools thoughtfully and systematically. Here are seven guidelines to guide you in how to get…
In this episode of CFI’s FinPod podcast, we sit down with Dang Duong Nguyen, a young finance enthusiast from Singapore. Join us as we talk about Dang’s journey into finance, his education at Polytechnic, and his self-driven learning through CFI courses. Dang shares insights from his internship at Julius Baer and outlines his aspirations in…
The Role of Expected Loss in Credit Risk Analysis Expected Loss (EL) is a key metric used in credit risk analysis, offering financial institutions a reliable way to estimate potential losses across their lending portfolios. By combining statistical insights with historical data, EL helps banks maintain financial stability, meet regulatory requirements, and optimize risk-based strategies….
Understanding Budgeting vs Forecasting in FP&A Suppose your CFO just requested an updated budget and a revised forecast. Which do you tackle first, and why does it matter? Budgets and forecasts both help organizations plan for the future. While they share common elements, their core purposes differ significantly: A budget is a detailed financial plan…
What is Gross Revenue Retention? Gross Revenue Retention (GRR) measures the percentage of recurring revenue a business retains from existing customers over time, excluding any revenue expansion from upgrades or upsells. This metric specifically accounts for revenue changes from customer downgrades and cancellations, providing a clear view of a company’s ability to maintain its baseline…
The Strategic Impact of Generative AI in Finance The emergence of generative AI in finance redefines what’s possible. While early adopters rushed to automate routine tasks like data processing and month-end closing, the true revolution isn’t in the automation itself. It’s in how these tools are freeing financial professionals to focus on strategic thinking while…
The increasing adoption of ChatGPT for finance represents a fundamental shift in how finance professionals approach their work. ChatGPT — along with competitors Claude and Gemini — all perform routine finance tasks in seconds, giving you more time for strategic work that adds value. The real game-changer is knowing the best AI tool to use…
