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A corporate finance director typically oversees or manages a team of financial experts who handle the financial activity of a company or organization. Usually reporting to or working under the CEO, a corporate finance director may define and develop a company's financial strategy and performance. Those who work in this industry may have an extensive background in corporate finance or investment banking and a working knowledge of corporate valuation, mergers, acquisitions, and other methods used to raise capital for business activities like research, development, and expansion.
On of the many responsibilities of a corporate finance director is helping a company or organization to clearly define a strategy for current and future financial activity. This strategy may include individual project finance, raising capital, and corporate finance responsibilities. Part of this function is also maintaining and monitoring the performance of these various financial activities. A corporate finance director will probably work closely with the chief executive officer (CEO) or chief financial officer (CFO) of a company. The need for analyzing and preparing monthly, quarterly, and annual financial reports to a board of directors may also be a part of this position.
A background in corporate finance or investment banking will assist any corporate financial director in successfully handling the duties and responsibilities of this position. Since investment banks will be underwriting any capital-raising projects, a corporate finance director with experience in investment banking will be in a unique position to help raise the funds necessary to expand or grow certain aspects of a business. A working knowledge of corporate capital-raising methods like stocks, bonds, and securities may also be a critical function in this position. Past experience with initial public offerings (IPO) of stock and issuing bonds to raise capital provides an advantage to anyone in this position.
Knowledge or past experience in dealing with shareholders, corporate valuation, acquisitions and mergers will provide an edge for most corporate finance directors. Before capital can be raised for a corporation through any of these methods, shareholders must be assured of the current market value of any assets or liabilities held by the corporation. A corporate finance director is also responsible for making sure a corporation does what is necessary to maintain an excellent credit rating if the need to borrow money arises. Excellent communication skills and the ability to know what information to disclose at what time while still working within the boundaries of any laws and regulations is vital in this position.