The oil and gas industry has traditionally been a cyclical business driven by commodity price fluctuations. While there is some debate about the future of the boom-to-bust cycle, strong financial, trading and risk management capabilities will continue to be critical to the success of an energy company. Financial executives face frequently changing market conditions that require increasingly sophisticated cash management solutions. There is increasing pressure on financial officers to demonstrate that risk identification and financial management are grounded in timely, accurate forecasts and performance data on which top management can base strategic decisions.
Today’s CFO
The convergence of regulatory, global and market drivers is requiring chief financial officers to reassess and align their finance organizations to meet current and future challenges. The most valuable CFO today is one who can advise the Company on strategic planning decisions, operating efficiencies and other areas that create value. The truly global nature of the oil and gas industry creates specific complexity challenges, which can create inefficiencies and discrepancies within the financial operation.
How PricewaterhouseCoopers can help you
We assist energy clients in developing a disciplined risk management governance framework that will enable them to meet performance and risk objectives, resolve uncertainty and achieve their financial goals. Using proprietary methodologies, we help clients: - Analyse risk valuation and measurement methodologies;
- Evaluate operational and risk management processes and controls;
- Benchmark trading and marketing activities against industry best practice;
- Design, select and test analytic tools for price forecasting, asset modeling, etc.;
- Build a best-in-class corporate governance framework to manage financial risks; and
- Communicate financial management policies and procedures to a wide stakeholder group, including members of the Board, investors, analysts and regulators.
Finance effectiveness
Our financial risk management specialists have developed a Finance Visioning Framework that helps today’s CFOs better understand which factors impact the effectiveness of the finance function. We focus on:- Standardisation and Simplification
- Performance Management
- Consolidation and Management Information
- People and Organisation
- Treasury and Capital Optimisation
- Controls Optimisation
