Discuss about the CFO : Roles and Responsibilities.
The Chief Financial Officer of the Santos Limited is Mr. Anthony Neilson. He is an Chartered Accountant with the experience in the sector of the oil and the gas in the United states, China, South East Asia, and the Australia. Before joining the Santos Limited, he was working in the Roc Oil Company Limited as the Chief Executive Officer and the Hong Kong-listed investor Fosun International Limited acquired that company in the year 2014. The Chief Financial Officer of the Roc Oil Company Limited was also Mr. Anthony Neilson, which held by the role at the Caltex Australia, Credit Suisse First Boston (London), and the Arthur Andersen (Sydney) for the finance and the business services. He has the experience about the 14 years in the field of the oil and the gas. He has the skills of the risk management as well as the strong knowledge about the finance and that skills will help the Santos Limited for the reduction of the cost and for increasing the operating cash flows and the management of the balance sheet for making the value for the shareholders. He has also joined the new executive committee, which has the ability of the technicals for the transformation of the Santos Limited into the business, which has the high performance and generates the low cost of the transactions and the reliable business. Mr. Neilson has completed his Master of Business Administration from the AGSM. He is also the partner of the Financial Services Institute of Australia and the member of the Chartered Accountant in Australia and the New Zealand. Mr. Anthony Neilson will start his responsibilities in the month of the December 2016 (Santos Limited, 2016).
The responsibilities of the CFO have changed from the previous year. Mr. Anthony Neilson will analyze the financial statements and he will revolve in the production. Mr. Neilson has also known to perform the accounting function on the computers. The responsibilities of the CFO and their function are distinct into the different roles:
The strategist CFO
The responsibility of the Mr. Neilson is to make himself, the strategist to the CEO. The success behind the effective CFO are do the management of the financial function, reports the numbers, and should take implemented actions according to the events, which is uncontrollable. The responsibility of the CFO is to look around the each operation, which has conducted in the company. They should have the ability to think and to apply the critical skills with the financial sharpness for achieving the long-term goals of the company.
The CFO as the leader
Another responsibility of the CFO is making himself a leader, which has the capabilities to implement the strategies of the company. The roles of the CFO are not limited only to the analysis of the efforts, which has done by the others employees or any departments of the company. Now the CFO also takes the responsibilities for the ownership of the financial results of the company and the team of the senior management. The CFO is also responsible for the leadership, which has provided to the others team members of the senior management such as the CEO of the company. The role of the CFO is also making the tough decisions, which is impossible or rare and difficult, but has to take those steps for the success of the company.
The CFO as a team leader
The responsibilities of the CFO are the leadership ability in the team to the other employees for performing the financial function for both inside and the outside. He is not only responsible for the performance of the team but also for the achievement of the greatest result with the help of the talents of the team. The CFO would generate the best results by the evaluation of the strength of the team members and achieved the performance at the high level with the help of the performance of the individual. The responsibility of the CFO is to bring the talents of the individuals, which have varied from each other and that can be helpful for the achievement of the financial performance.
The CFO with the third parties
The CFO are also responsible to build and the maintains the relationship with the third parties. These third parties may be customers, vendors, and the bankers also. The people who are not working in the same organization are look forward on the performance of the company, which has conducted by the senior management team such as the CEO of the company. However, in most cases the CFO certifies the financial ability of the company. The role of the CFO is also to make the sustainability of the company for the customers, vendors, and the bankers. These parties also look forward to the roles of the CFO about the truth regarding the financial ability of the company that will deliver the commitment, which has created by the CFO (The Strategic CFO, 2015
The Santos Limited is the producers, which is leading to the oil and the gas in the region of the Asia-Pacific. This company is supply the energy to the homes as per the requirements also to the business and the large industries in the Australia and the Asia. Santos Limited is one of the biggest explorations of the Cooper Basin origin and has the acreage of the production in the Australia. The Santos Limited has the infrastructure that is extensive and gives the commitment towards the supply to the domestic market, open resources and the major value as well as the performance. The portfolio of the liquefied natural gas, which has the high quality and the pipeline gas and the oil assets, supports it. With the help of these, Santos provides the long-term values to the shareholders. The foundation of the Santos depends on the security, sustainability of the operations, and the coordination with the shareholders, society, governments, and the partners of the business. The company innovates the new process and the creativity, adopts new things, and always ready to accept the new challenges and develop the opportunities and solve the problems of the customers. The company determines the value and the power in the varied things. The company are communicating with the customers for the understanding their views and demonstrate the leadership by share their idea and for the achievements of the results, they challenged each other. The employees of the Santos Limited accepts the responsibilities as their own responsibilities and delivered the work in time with the quality assurance that will give the benefits to the Santos Limited, which is helpful to achieved the vision and the strategy of the company (Santos Limited, 2016).
Efficient market hypothesis
The theory of the market, which had evolved from the 1960 by the Eugene Fama. He states the efficient market hypothesis is that at the given point of the time and in the market of the liquid, the prices of the security that discloses the information, which is available. The existence of the efficient market hypothesis is in the different degrees i.e., weak, semi-strong, and the strong, which includes the market prices of the non-public information. The theory of the efficient market hypothesis contains the market, which are efficient and the present price, which discloses all the information, which started to perform in the market, which should have the probability instead of the skills.
The first form of the EMH is the weak form that assumes the present price of the stock that discloses all the information regarding security market, which is presently available. It states that there is no relation between the previous price and the volume of the data along with the future prices of the security. It is concluded from this from that the over return is not possible with the help of the technical analysis.
Another form is the semi-strong that states that the present prices of the stock has adjusted fastly for releasing the new public information. It includes that the prices of the security are available as per the market and the information of the non-market public. It has concluded from this form that the high return is not possible with the help of the fundamental analysis.
The last form is the strong form that states that the present prices of the stock are disclose both all the information that is public and the private. It includes the factorization of the market, non-market, and the internal information has done into the prices of the security, which having no access monopolistic to the relevant information. There is an assumption of the perfect market and it has concluded from this form that the greater return is not possible for achieving consistently (Morning Star Inc, 2016).
The role of the pension fund manager
The main responsibility of the pension fund manager is to manage the pension fund with the pool of the money, which has paid by the company for the benefits. The other responsibilities are:
- Development of the policies, which has related to the pension, and the packages of the benefits.
- Review and discuss the strategy of the funds with the advisors, investment managers, and the board of the company.
- Management of the relationship, between the employer and the trustee.
- Give advice to the company of the new issues that has related to the finance.
- Provide awareness about the matters, which has related to the pensions.
- Ensuring about that the schemes are operating in the effective way and meeting the target.
- Execute all the administration of the pension schemes (Manpower Nigeria, 2016).
Santos Limited.(2016).what we do. Retrieved from https://www.santos.com/what-we-do/
Santos Limited.(2016). Appointment of CFO. Retrieved from https://www.santos.com/media-centre/announcements/appointment-of-cfo/
The Strategic CFO.(2015).the role of the CFO. Retrieved from https://strategiccfo.com/the-role-of-the-cfo-chief-financial-officer/
VAGO.(2004).CFO: roles and responsibilities. Retrieved fromhttps://www.audit.vic.gov.au/publications/2004/20040201-chief-finance-officer-role-and-responsibilities.pdf
Morning Star Inc.(2016).efficient market hypothesis. Retrieved from https://www.morningstar.com/InvGlossary/efficient_market_hypothesis_definition_what_is.aspx
Manpower Nigeria.(2016).pension scheme manager. Retrieved from https://manpower.com.ng/job-descriptions/Pension-scheme-manager-331.html