English 
Vietnamese In recent years, we have seen a whirlwind of unexpected changes, such as the fluctuation of cryptocurrency, the implementation of GDPR, the Brexit saga, and the China-US trade war. Adding to this, the recent pandemic has led to a global recession, making the world more volatile, uncertain, complex, and ambiguous than ever before.
Despite this, experts predict that the next five years will be full of challenges, disruptions, and opportunities for businesses, with technological advancements playing a significant role in driving positive change.
To prepare for any eventuality, businesses must establish an effective financial plan that not only helps them achieve their short-term goals but also prepares them for the future.
Financial planning in a slowing economy
Financial planning is not only essential for large corporations but also for small businesses with limited budgets.
In the current economic downturn, businesses need to be financially stable to survive. By creating a detailed financial plan that covers all aspects of the business, including taxes, overheads, expenses, salaries, and more, organisations can manage their funds better.
This enables CFOs to have a better view of the entire business and make informed decisions about distributing funds evenly or allocating them to areas that need them the most.
Effective financial planning not only helps businesses achieve their short-term goals but also prepares them for the future, ensuring they stay afloat despite ongoing catastrophes. With the right plan in place, businesses can weather any storm, no matter how unpredictable.
Read more: Revamping corporate financial planning: 8 points to remember
Issues with regulation and compliance
The complex local markets, along with stricter regulations and extensive compliances in safeguarding data privacy, can be taxing.
However, the new and improved regulations did not happen just recently. For the past few decades, countless businesses regardless of size struggled to stay compliant. Research has also revealed that regulations and compliance are seen as the most significant disruptor to businesses over the next five years.
On the bright side, technology and data management are seen as "the cure" to the regulatory predicament. The key to success is the ability to plan effectively, along with the ability to access quality insights when needed.
Many businesses express their strong confidence in preparing for the storm ahead and believe that they have planned effectively to face the changing market.
Read more: Make Compliance an Opportunity, Not a Burden
However, in a study done by Vuealta, it was revealed that a considerable portion of respondents do not have adequate planning tools and processes to back up their claims, or they have access to valid, real-time data sources from different departments within the organisation. 35% of the survey respondents still operate in silos. 38% have plans that are made of disparate documents. 24% use one single shared spreadsheet for all business units.
In today's volatile economic climate, continuing to work in silos can be detrimental to organisations. Therefore, it is crucial to reevaluate planning approaches, identify pain points, promote data transparency, and encourage interdepartmental collaboration to make informed decisions more quickly and accurately.
To achieve this, leveraging emerging technologies is commonly considered a suitable approach as they facilitate real-time data collection and management. With the right system in place, access to critical data can significantly reduce the negative impact of uncertainty, enabling businesses to build more realistic long-term financial plans while staying compliant.
Read more: What is Stopping Your Organisation from Adopting Continuous Close?
Technology disruptions
Gone are the days when businesses relied on pen and paper to plan their ideas. As the industry and market continue to evolve, so does the technology that supports it.
In the era of Industry 4.0, financial planning must be dynamic, connected, and easily accessible. Planning tools can now be digitised, updated automatically, adjusted, or completely revamped, empowering CFOs and managers to access insights instantly and make more informed decisions.
Read more: A Complete Guide to EPM Software
Today's planning tools are designed to allow users to experiment with different what-if scenarios and evaluate the trade-offs to take the most suitable actions.
In recent years, we have heard multiple times about technological buzzwords such as Artificial Intelligence (AI), machine learning, blockchain, and big data - all of which have great potential to disrupt or completely transform the finance world.
Data management is a daily challenge for businesses, and the question of whether we are truly utilizing our available data remains unanswered. Unfortunately, the answer is no.
However, businesses often underestimate how emerging technologies can aid in tackling the data issue. Big data is one of the most significant disruptors that can help businesses navigate today's unpredictable environment.
While emerging technologies have already shown their advantages in the financial sector, they are still in the early stages of development and will undoubtedly continue to mature and transform the industry even further. Nevertheless, with the rise of technology also comes the potential for increased cybersecurity risks and identity theft.
As businesses become more reliant on digital platforms and data management, it is crucial to prioritise security measures and invest in robust cybersecurity systems to protect sensitive information from potential breaches. This is especially important as hackers become increasingly sophisticated and find new ways to exploit vulnerabilities.
Read more: Data Protection: A Security Key for Every Business
Financial institutions and businesses must stay vigilant and proactive in identifying and mitigating potential risks, constantly updating their security protocols and systems to stay ahead of potential threats. Additionally, educating employees on cybersecurity best practices and promoting a culture of security awareness throughout the organization can also go a long way in protecting against potential breaches.
As the business continues to evolve and embrace new technologies, it is essential to strike a balance between innovation and security, ensuring that businesses are equipped to navigate the digital landscape while safeguarding against potential risks.
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