Chief Investment Officer (CIO) v/s Chief Financial Officer (CFO): What are the Differences?

Today’s finance industry is booming and roles such as that of the CIO and CFO are in high demand across the world. If you are inclined to explore the finance industry as a career path, understanding the details of both roles is highly important.

CIO vs CFO

Who is a Chief Investment Officer (CIO)?

A chief investment officer or CIO is the executive role in charge of determining a firm’s investing style and strategy.

CIO roles and responsibilities

• Managing IT resources: CIOs are in charge of overseeing the IT department’s budget and selecting whether and how to purchase essential equipment.
• Supervising IT staff: CIOs manage and mentor all IT department staff to ensure that the team is not only performing their duties but also keeping up with technological advancements.
• Supervising the implementation of systems: They are in charge of planning and overseeing each step of the implementation process of sophisticated systems that need a certain level of expertise.
• Establishing commercial partnerships with IT suppliers: The CIO fosters positive relationships with vendors that build IT equipment for business usage.
• Developing effective strategies and solutions to meet the demands of the firm: CIOs are expected to provide custom technological solutions that directly benefit the firm and employee productivity.

Top skills of a CIO

• Project management
• Strategic thinking
• Analytical skills
• Financial systems
• Technical aptitude
• Soft skills
• Interpersonal relationship building

Who is a Chief Financial Officer (CFO)?

The chief financial officer or CFO is a financial controller who is in charge of cash flow, financial planning, and taxation.

CFO roles and responsibilities

• Supervising the staff: CFOs provide proper mentoring and direction to the finance and accounting teams.
• Reporting to the CEO: The CFO is in charge of making strategic suggestions regarding the financial prospects and plans to the CEO and the top management team.
• Managing the financial planning of the company: A CFO is expected to advise and develop a successful long-term business and financial planning strategy which heavily includes maximizing profits and managing investment portfolios.
• Fostering healthy relationships with superiors: A CFO is in charge of forging and developing relationships with top management, as well as external partners and stakeholders.
• Overseeing IT-related procedures from a finance perspective: A CFO analyzes all formal financial, human resources, and IT procedures.

Top skills of a CFO

• Basic technical skills
• Data analytics
• Budget managing
• Soft skills
• Finance knowledge
• Interpersonal relationship building

CIO vs CFO: What are the differences?

• Key responsibilities: While a chief investment officer or CIO handles investments and related matters, a chief financial officer or CFO is largely responsible for managing a company’s finances.
• The scope of their jobs: CIOs are not in charge of overseeing the whole financial domain. Instead, they just deal with the investing portion of it. As a result, in the absence of a CIO, the essential functions of the job title may combine with those of the CFO.

CIO vs CFO salaries

According to Indeed.com, the average salary for a chief information officer or CIO is $107,203 per year in the United States. While the average salary for a chief financial officer or CFO is $141,158 per year in the United States.

Education for CIO vs CFO

Regardless of the variations in the scope of the CIO’s or CFO’s roles, continuing education is sure to assist both of them to progress in their careers. Here is an executive education program that are popular options to assist you to broaden your financial knowledge:

Global Master of Science in Finance (Global MS in Finance)

The Global MS in Finance from the Richard DeVos Graduate School of Management at Northwood University prepares you for possibilities in finance and helps you grow personally and professionally. Participants of the program study the function of financial institutions, the mechanics of financial intermediation, and the expansion of digital channels from recognized academics and professionals. Participants also learn about analyzing financial data using sophisticated methodologies, creating, formulating, and executing financial and operational strategies, benchmarking outcomes, and adjusting financial plans accordingly.