In an environment defined by volatility, trade tensions, and downgraded growth forecasts, senior finance leaders are being challenged like never before. With the IMF recently lowering global growth expectations and raising the probability of a U.S. recession to nearly 40%, finance executives are now at the frontline of safeguarding organisational resilience. This is where Enterprise Performance Management (EPM) moves from a support function to a strategic imperative. 

 

 

EPM brings together the critical components of planning, forecasting, financial consolidation, and performance analysis into a single, integrated framework. 

By linking financial objectives with your operational levers, these platforms will provide finance leaders with a 360-degree view of the business. Whether it’s FX volatility, supply chain disruption, or liquidity constraints, EPM helps quantify the impact across the enterprise and supports data-driven decision-making. 

 

Lets look at the role it plays in risk management and just some of the examples where EPM plays a vital role in organisations 

 

 

In my previous article I spoke in detail about moving away from traditional planning to a more agile planning model and the steps required from organisations to do so. Traditional financial planning, often locked into static annual cycles, is no longer sufficient. 

In a climate where conditions can change overnight, companies need to shift toward agile, rolling forecasts and real-time scenario analysis. EPM platforms such as Oracle Cloud EPM, Solver, and OneStream enable finance teams to model, assess, and act on multiple risk scenarios within hours. 

 

 

With the uncertainty of today’s environment organisations need to be ready to answer not only "what is happening," but also "what if it happens." EPM tools allow organisations to do this by empowering them with the technology model different scenarios, such as a 15% revenue decline, a weakening dollar, or delayed supplier shipments. This gives them the data instantly and a real-time understanding on how these variables can cascade across cash flow and margin. 

This kind of foresight will inevitably give organisations a competitive edge as it will enable pre-emptive action, not reactive scrambling. 

 

 

Risk doesn’t stop at the balance sheet which is why EPM connects finance with HR, supply chain, sales, and operations through Integrated Business Planning (IBP). 

This allows finance teams to align headcount planning with revenue forecasts, or adjust procurement based on anticipated shifts in working capital needs. In doing so, organisations become not only more responsive, but also more strategically synchronised. For example, if the CFO initiates a hiring freeze tomorrow, HR updates the headcount plan, which automatically notifies project teams of resource constraints. Sales adjusts their revenue forecast due to expected project delivery delays, and finance recalibrates bonus accruals and payroll spend accordingly. That’s an example of how a true IBP when executed well, works. 

 

 

In turbulent times like these, early warning systems become critical. Within EPM the dashboards provide real-time insights into key risk indicators, such as liquidity ratios, days sales outstanding (DSO), and margin compression. 

Having these dashboards and an early view of the data through agile planning, integrated planning and scenario modelling is a game changer for any business. 

 

 

 

Conclusion 

Over the past number of years EPM has evolved beyond a back-office tool into a strategic asset. For finance leaders, embracing EPM is not just about improving forecasting accuracy, it’s about empowering the organisation to make faster, smarter, and more coordinated decisions in the face of uncertainty. 

As the economic horizon becomes increasingly complex, the role of finance is being redefined. Enterprise Performance Management sits at the heart of this transformation, providing the tools, insights, and agility required to navigate risk with confidence. For senior finance executives, the call to action is clear: make EPM the foundation of your risk strategy or risk falling behind! 

 

 

If you're exploring how EPM might benefit your organisation,or want to understand how to better utilise your current EPM platform, we would welcome the opportunity to share further insights with you. Y You can contact us through our website www.intelligent-enterprises.com or email michelle@intelligent-enterprises.com