Financial Intelligence in the Boardroom

By |2019-07-26T11:34:50-04:00July 25th, 2019|Corporate Board Journey, Understanding Financials|

Every board member has a role in financial oversight. Even if you don’t have financial expertise, you are still expected to maintain an adequate level of financial intelligence. This means that you need to have an understanding of the fundamental concepts, conventions and principles underlying financial statements. Top 5 tips to help you boost your level of financial intelligence in the boardroom: 1. Develop a plan and begin the work. Start by reviewing the annual filings of TSX listed companies that you are interested in or work for. 2. Seek out a mentor or someone who has financial expertise. Ask someone you know that has financial expertise if you can spend time with them over the next 12 months, transferring knowledge and helping you understand core financial concepts. 3. Understand the basic financial concepts/principles and how to look at financial statements. CPA Canada has great document you can refer to: https://www.cpacanada.ca/en/business-and-accounting-resources/financial-and-non-financial-reporting/international-financial-reporting-standards-ifrs/publications/reading-financial-statements-what-do-i-need-to-know-faq 4. Do your financial due diligence before joining a corporate board. Review the annual audited financial statements, quarterly financials, Management, Discussion & Analysis (MD&A) and fore-casts/budgets to understand the [...]

Understanding Financials for Not-For-Profit Boards: Are you Financially Literate?

By |2016-01-18T16:19:07-05:00January 18th, 2016|Understanding Financials|

Understanding financials for a non-finance person can be challenging and even overwhelming. A not-for-profit board role includes a financial oversight role, which means not-for-profit directors need to be financially literate. You do not need to be a financial expert, but you do need to have a fundamental understanding of the financial statements of the organization in order to determine its financial viability. 10 tips to help you become financially literate on a not-for-profit board Understand what it means to be financially literate. Maintain your objectivity by being independent minded, and if you don’t know, ask; ensure you fully understand the financial issues of the organization. Develop a plan to become financially literate and begin the work. Begin by reviewing the annual reports of organizations that you are interested in and/or are already serving on the board of. Look for a mentor or someone who has financial expertise. Ask someone you know that has financial expertise if you can spend time with them over the next year to help you understand financials. Do your financial due diligence before [...]

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