Roles & Responsibilities of the CEO, COO & CFO in the Company
CEO is a borrowed concept from the United States of America. CEO was first defined in Section 2(18) of the Companies Act, 2013.
CEO stands for Chief Executive Officer. He/she is the highest-ranked individual or a top-level executive of a company. CEO of the company takes all the final decisions. They may ask for input on major decisions, but they are the ultimate authority in making final decisions. There are other titles for CEOs, such as chief executive, president, and managing director. In the government and non-profit sector, chief executive officers typically seek to achieve results that relate to the mission of the organization.
CEO is the public face of the company
CEO is personally liable for any violation of the tax or any laws.
A CEO is also liable for every offense, even the offences based on negligence, with regards to the management. For instance, where the balance sheet shows a false or misleading statement or if there is any omission, the CEO will be liable. CEO of the company reports directly to Board of Directors.
Must have skills for becoming CEO
1 Interpersonal skills
2 Leadership skills
3 Management skills
4 Soft Skills
5 Analytical skills
COO stands for Chief Operating Officer.
In the chain of command (hierarchy for reporting relationships) COO is at the second.
The COO focal point is to execute the business plans. He is the person who is responsible for the management of the departments of a company which is production, marketing, and sales. In general, COO acts as a supervisor and as a leader, his work is also to ensure that the organization and employees are implementing the plans of the CEO.
Must have skills for becoming COO
1 Strategic mindset
2 Outstanding problem-solving skills
3 Excellent ability to lead and manage
4 Communicate effectively at all levels
5 Strong leadership ability
CFO stands for “Chief Financial Officer”. He/She is the executive who is responsible for monitoring the cash flow, financial planning and all other financial work or activities of the organization.
CFO assesses the financial risk of a company. Also, analyze the financial strengths and weaknesses of a company and gives suggestions for its improvement.
Must have skills for becoming CFO
1 Good financial knowledge
2 Market study
3 Share market knowledge
What qualifications are required?
Bachelor's degrees in accounting, business, economics, finance, and management are common qualifications of CEOs
Many organizations prefer choosing a person who has done an MBA.
COOs typically have a combination of solid education and work experience. A COO should have a degree in business or a proven track record of successful team building.
The CFO must have a degree of a charted accountant or he/she must have done an MBA in finance.
After knowing the roles and responsibilities of the CEO, COO and CFO, one can be more clear with their dreams in life. But always remember a big position in a company comes with a big responsibility, choose wisely.