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International Investing / Australia (All-Ordinaries)


Subject:  CFO of the Year Date:  1/23/2002  11:04 PM
Author:  jono202 Number:  3364 of 6186


Some refreshing comments from the financial officer of the year.

Good CFOs can educate domestic investors that being successful is not about adopting the newest cookie cutter corporate finance methodologies. But if you take on the investors, you'd better be able to explain your actions.

Yep now that sounds good.

While making the right returns should be the test, CFOs are often called upon to justify their judgment about committing capital. Adamsas allocates capital on the basis of risk, and conditions affecting country risk and industry risk in Asia, can change in a heartbeat. "With today's political and economic uncertainty, it's a more difficult decision to make. You can make a whole series of judgments, circumstances change and if you're not watching like a hawk, things can turn bad and you could knobble the company.

"So, you calculate how much money you want to be exposed to in that part of the world and what sort of return you want to make. You are constantly reviewing these assessments and checking out every possible scenario, that is, what if this changes, what do we do if this happens, what are the implications for earnings and the balance sheet, can we handle it, and if not what are the other options?


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