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March/April 2022 » The Risks Facing the CFO
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Frank Manzi, , CPA, and Mark Martinelli, , CPA, CGMA
Business risk is defined in generic terms as the exposure a company must consider that may lower its profits or lead it to fail. This definition will suffice for purposes of this discussion, especially because it clearly lays business risks within the realm of the CFO, as it focuses on the impact on profitability. Because risks are often quantified in financial terms, they ultimately end up on the CFO's desk. Anything that threatens a company's ability to achieve its financial goals is considered a business risk.
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