We asked Brian Olson, a former CFO and CEO of both private and public companies and an executive coach with Chief Executive Coaching, how CFOs can be most effective as they lead their companies through a period of economic and financial market turbulence.—Editor
This situation may feel abrupt and dramatic, but the signs were there all along. Tariffs were a consistent talking point in President Trump’s speeches, making their impact on businesses foreseeable. It serves as a clear reminder of the critical need for companies to actively identify, categorize and assess both anticipated and unforeseen risks—now and in the future.
CFOs, at their core, are risk managers. Their responsibility extends beyond recognizing current threats; they must analyze underlying business factors that could develop into future disruptions. Effective financial leadership demands a structured approach to risk—categorizing potential issues, identifying contributing factors, monitoring trends and reporting insights to the organization. Understanding probabilities and planning accordingly is essential.
Tariffs, economic shifts and supply chain disruptions should have been integrated into risk matrices years ago—likely even before the pandemic underscored the importance of contingency planning. Companies equipped with well-structured preparedness strategies can absorb shocks far more effectively than those scrambling for solutions after the fact.
While some events are genuinely unpredictable, this one was not. The warning signs were clear. That said, the human impact—on employees, executives and business operations—must be acknowledged. Thoughtful, measured responses are necessary to navigate the complexity and mitigate disruptions.
‘Deep and Long-Lasting’
Leaders, particularly CFOs, must remain composed. No matter the scenario, panic is never the answer. Leadership demands clarity, decisiveness and strategic action. Depending on the scale of the disruption, professional communication with employees, suppliers and customers may be necessary.
Given the economic ramifications, this situation is far more than a temporary setback. Its effects will likely be deep and long-lasting. Companies must rely on data, industry knowledge and their own strategic expertise to find the best path forward. There’s no universal solution—each business must assess its specific circumstances and make deliberate, pragmatic decisions.
One fundamental truth: no crisis is as devastating as it may seem in the moment, and no period of prosperity lasts forever. These realities underscore why rigorous risk management is essential.
Even in challenging times, opportunities exist. Simply managing through adversity shouldn’t be the sole focus—these disruptions can also present avenues for strategic growth. Whether it’s identifying new suppliers, pursuing vertical integration, making acquisitions, restructuring or entering new markets, CFOs can step forward and showcase strategic leadership.
Ultimately, resilience starts with preparation. A strong foundation, forward-thinking strategy and robust support structures must be in place long before a crisis strikes. Businesses that plan proactively will always be better positioned to weather uncertainty and emerge stronger.
