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The role of the Chief Financial Officer (CFO) in a Canadian public company has never been more complex or critical. CFOs today find themselves on a vibrant grid of duties; duties that go far beyond the scope of the conventional accounting and treasury roles. These include navigating an evolving regulatory landscape, responding to investor activism, mitigating operational and cyber risks, and integrating sustainability into financial reporting—all while supporting strategic growth amid uncertain economic conditions.
In Canada, the pressure is especially acute given the country’s exposure to global commodity markets, rising ESG expectations, ongoing regulatory modernization, and talent shortages in key finance functions.
According to the 2024 Canadian CFO Survey issued by PwC, 78 percent of Canadian CFOs said that they were more engaged in strategy and transformation than ever before and more than 60 percent said they were most concerned about the regulatory burden and talent shortages.
Key Challenges Faced by CFOs in Canadian Public Companies
1. Complex and Evolving Regulatory Environment
CFOs in public companies must maintain compliance with Canadian Securities Administrators (CSA) guidelines, International Financial Reporting Standards (IFRS), and National Instrument 52-109 (CEO/CFO certifications of disclosure controls and procedures). Additionally, the Ontario and British Columbia securities commissions, and Autorité des marchés financiers (AMF) each maintain specific expectations, especially around continuous disclosure obligations.
In 2023, the CSA proposed mandatory climate-related disclosures aligned with the TCFD framework, signalling a shift toward integrated financial-ESG reporting. In addition, the International Sustainability Standards Board (ISSB) has issued IFRS S1 and S2, which is anticipated to be adopted by Canada in the nearest future. Even though it is voluntary in its adoption, it went into effect starting as early as January 1, 2025.
- Mitigating Strategy:
- CFOs should invest in compliance automation tools and ensure internal audit and SOX-like frameworks are continuously updated.
- Establish an internal regulatory watch committee to monitor proposed and enacted regulatory changes.
- Build cross-functional teams (finance, legal, ESG) to coordinate timely disclosure and mitigate penalties or reputational risk.
2. Pressure from Investors and Financial Markets
The CFO is supposed to give a clear message about financial performance and outlook to shareholders, analysts, and the board. The investor mood is also more conservative after the COVID period, with institutional investors looking to have firm leadership, control of costs, and ESG incorporation.
The report by the Globe and Mail Board Games 2024 reveal that institutional ownership within Canadian listed companies on the TSX is above 60 percent and investor relations is the greatest contributor of CFO effectiveness.
- Mitigating Strategy:
- CFOs must take a leading role in quarterly earnings calls, backed by strong data analytics and scenario-based forecasting.
- Develop an Investor Relations (IR) playbook that includes KPI reporting, strategic capital allocation rationale, and ESG messaging.
- Proactively engage with proxy advisors and institutional shareholders to pre-empt activist campaigns.
3. Cybersecurity and Data Integrity
Nevertheless, as the financial reporting process gets more digitally enabled, the CFOs would have to face the rising cybersecurity threats. The average cost of a data breach in Canada as reported by an IBM 2024 Data Breach report was CAD 6.9 million across all departments with finance departments ranked among the most frequently hit.
Public companies are at a high degree of exposure since the data breach triggers reporting under NI 51-102 and OSC enforcement is possible.
- Mitigating Strategy:
- CFOs ought to incorporate cybersecurity in the enterprise risk management programs.
- Work together with CIOs to sort out financial systems that are compliant with ISO 27001
- Disclose cyber risk transparently in MD&A sections and update risk factor disclosures.
4. Talent Shortages and Workforce Modernization
Canada’s accounting and finance labour market continues to tighten. A 2024 CPA Canada survey revealed that 71% of Canadian CFOs face challenges in hiring skilled financial professionals particularly those with experience in data analytics, ESG, and risk management.
The issue particularly sounds alarming in the case of regional or the middle-sized public companies beyond large cities.
- Mitigating Strategy:
- CFO should invest in development of internal teams (professional development, e.g. ESG certification, data literacy).
- Knowing how to leverage hybrid workforce structures CFOs as part-time employees, temporary controllers, or ESG analysis outsourcing.
- Create internal succession planning and leadership pipelining that minimizes the risk of turnover.
5. Sustainability Tracking and Sustainable Global Reporting
There is growing pressure on Canadian publicly traded entities now to disclose their climate risks, emissions data and sustainability plan. The NI 51-107 proposed by the CSA will demand really heavy climate disclosures. Also, other big institutional investors, including BlackRock, RBC Global Asset Management and several others, employ ESG standards in investment decision making.
Non-disclosure of critical ESG risks also may be deemed as misrepresentation under the securities law.
- Mitigating Strategy:
- CFOs must lead the integration of ESG data into financial planning, risk modeling, and capital allocation.
- Adopt globally recognized frameworks such as TCFD, SASB, or GRI until ISSB-based disclosures are mandated.
- Partner with ESG consultants and legal advisors to build robust sustainability reporting processes.
6. Macroeconomic Volatility and Capital Markets Access
Capital availability, borrowing rates, and corporate valuations have been affected by the monetary tightening cycle, the interest rates volatility, and inflation issued by Bank of Canada. In its 2024 Capital Markets Outlook, BDO reports that over the coming 12 months, 45 percent of mid-market Canadian publicly listed companies anticipate having a more constrained access to equity and debt. Moreover, earnings and cross-border M&A activity are also affected by FX volatility, especially against CAD/USD.
- Mitigating Strategy:
- Build dynamic cash flow forecasting and sensitivity analysis. Offset currency, commodity and interest rate exposures using financial tools (swaps, forwards).
- Diversify financing through convertible debt, strategic partnerships, or preferred equity instruments.
7. Strategic Advisory Role Amid Disruption
With the CFO’s role now central to digital transformation, M&A, and sustainability strategy, finance leaders are expected to act as internal strategists and transformation enablers.
The 2023 Deloitte CFO Signals Report notes that 82 percent of Canadian CFOs play a direct role in driving the enterprise-wide strategic direction, and 49 percent of them say they are confident they are capable of achieving digital transformation.
- Mitigating Strategy:
- CFOs are asked to incorporate scenario planning, rolling forecasts and KPIs of strategy in the decision-making process.
- Employ such data visualization (e.g., Power BI, Tableau) to provide business stakeholders with insights (even not financially oriented).
- Use third parties to provide independent due diligence or feasibility studies or to support the change.
Model: Proactive CFO Operating Model
To thrive in such high expectation and high accountability, Canadian CFOs in the position of a public company should consider the following combined framework:
- 1. Risk and governance integration
- Include enterprise risk management (ERM) into the financial reporting framework.
- Automate control and establish predictive risk analytics.
- 2. Modernization of data and technology
- Upgrade ERP systems, and use AI-enabled tools for forecasting, reporting.
- Create a digital finance strategy to match strategic priorities.
- 3. ESG Transparency and Stakeholder Transparency
- ESG integration to align the ESG reporting to the financial materiality.
- Establish KPIs of emissions, DEI, board, and supplier sustainability.
- 4. Strategic Agility and Capital Optimization
- Build agile budgeting and reforecasting capabilities.
- Evaluate capital structure quarterly in response to market shifts.
- 5. Leadership and Talent Development
- Create finance talent roadmaps and succession plans.
- Promote cross-functional leadership roles and board-facing communication skills.
How Faber LLP’s CFO Advisory Service Can Help
Faber LLP provides a full service CFO Advisory Service that assists public company CFOs to fulfil their responsibilities with confidence and clarity in this fast-paced era of financial leadership. No matter how sophisticated the regulatory landscape, how much you need to be ready to transact in capital markets, how critical you require ESG transformation, Faber LLP will have the expertise and the perspective you need to succeed.
Our team includes CPAs, former CFOs, financial risk experts, and regulatory specialists who bring hands-on experience across sectors. We help your organization:
- Develop customized KPI and ESG reporting frameworks.
- Build governance and risk models aligned with CSA and IFRS expectations.
- Implement digital finance transformation strategies using cloud-based analytics.
- Support investor communications, MD&A drafting, and earnings call preparation.
- Address talent gaps through interim leadership and training support.
Having an in-depth familiarity with the regulatory landscape in Canada, capital markets legislation, and strategic finance requirements, Faber LLP is your advisor of choice in constructing a finance function that is adaptable and looking into the future. We don’t just help you meet compliance—we help you turn challenges into competitive advantage.
- Key Advantages: