In today’s volatile landscape, executive teams and Boards face complex, fast-evolving challenges from technological disruption to uneven growth. Savannah Group’s Next Generation Leadership Institute (NGLI) is exploring how non-executive Board roles are adapting, through a series of lunches with senior leaders and NEDs to discuss emerging pressures and the capabilities needed to navigate them.
We’ve summarised the most pertinent takeaways from our recent Next Generation Leadership Institute lunch of Audit Chairs and CFOs:
Going Concern is Too Narrow
Many guests felt that “ going concern ” metrics and audit checklists can miss the real signals of business fragility. Instead, focus should be on strategic sustainability and cash resilience, not just 12- month liquidity.
Cash, Not Profit, is The Real Indicator
CFOs emphasised that understanding cash flow is more important than profit in evaluating the health of a business, especially in times of stress or crisis.
Auditors Can Miss The Real Risks
Over-reliance on formal tests and hypothetical scenarios (like arbitrary revenue drops) was criticised. CFOs want auditors to focus more on practical, operational risks that truly affect viability.
Value of Executives Holding NED Roles
Having a serving executive on a board can bring real-time insights and operational relevance if the time commitment is realistic and the company values the experience.
Experience Through Crisis Builds Better CFOs
Those who had worked through company distress, takeover defence, or aggressive leverage felt better prepared and more pragmatic in assessing risk and building resilience.
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