The role of the FP&A Professional Flashcards
(45 cards)
What does FP&A stand for and what is its core purpose?
Financial Planning & Analysis; it manages, interprets, and communicates financial data for strategic decision‑making and problem‑solving.
According to the course, why do CFOs call FP&A both vital and underperforming?
Because it should reduce risk and guide growth, yet many organizations lack robust, value‑adding FP&A capabilities.
List three top FP&A pain points revealed by recent surveys.
Time‑consuming processes, disconnected data/version control issues, and inability to react quickly due to lack of driver‑based planning.
Name two additional common FP&A frustrations besides data and time issues.
Ineffective tools leading to poor accuracy, and weak scenario planning that hampers fast action.
How does the role of a Controller differ from FP&A?
The Controller focuses on historical record‑keeping, compliance, and financial reporting; FP&A focuses on forward‑looking analysis, planning, and decision support.
What two descriptors summarize the CFO’s role atop the finance function?
Financial expert and business strategist.
Who are the primary external stakeholders a CFO interfaces with, according to the slides?
CEOs, boards, and external stakeholders such as investors or lenders.
In an effective structure, to whom does the FP&A team typically report?
Directly to the CFO.
Give four example focus areas listed under FP&A ‘Select Focuses’.
Strategic operational planning, financial forecasting, risk management, and executive/board reporting.
What metaphor is used to describe FP&A’s cross‑functional information role?
“The Financial Control Tower”—seeing across the organization and dispensing insights to all groups.
What is the first step FP&A takes in strategic financial planning?
Establishing financial targets and monitoring progress toward strategic goals.
Which analysis technique does FP&A use to compare best‑, base‑, and worst‑case outcomes?
Scenario feasibility or ‘what‑if’ analysis.
Name three core responsibilities of FP&A besides strategic planning.
Monitoring financial condition, capital project planning & management, and managerial/cost accounting support.
When monitoring EBITDA variance, which driver accounted for 64 % of negative variance in the example?
Volume.
Explain how FP&A adds value when a prototype project shows cost overruns.
It collaborates with design, operations, or purchasing to build efficiencies or reduce material costs.
Which three evaluation metrics were shown in the capital project example?
Net Present Value (NPV), Modified Internal Rate of Return (MIRR), and Payback Period.
In that example, what was the MIRR and payback period?
MIRR ≈ 18.24 % and payback ≈ 0.57 years.
What company size range was labeled ‘mid‑market’ for FP&A benefits?
Companies with revenue between $25 million and $1 billion.
Why do small businesses often lack a formal FP&A team?
They rely on controllers or accountants who handle FP&A tasks in addition to basic bookkeeping.
Give three industries from the slide list that particularly benefit from FP&A.
Pharmaceuticals, Software & Technology, and Transportation & Logistics (any three from the extensive list).
Describe a Level‑1 (L1) FP&A maturity profile.
Immature & fractured: basic accounting focus, no dedicated FP&A role, limited forecasting analytics.
What distinguishes Level‑4 (L4) FP&A maturity?
Mature & integrated: robust systems across departments delivering a single source of truth with high‑speed data access.
Contrast traditional and future FP&A mindsets.
Traditional is reactive, cost/process‑focused; future is proactive, strategy‑focused, modeling and scenario analysis oriented.
List two technologies enabling future FP&A beyond Excel.
Enterprise Performance Management tools and Business Intelligence/Analytics platforms (plus AI/ML).
