Certified Treasury Professional 2025 – 400 Free Practice Questions to Pass the Exam

The Chief Financial Officer (CFO) typically has the primary responsibility for developing a company's investment strategy because they play a crucial role in overseeing the overall financial operations and strategy of the organization. The CFO is responsible for financial planning, risk management, and maintaining investor relations, which includes making informed decisions about the allocation of resources to maximize returns on investments.

In shaping the investment strategy, the CFO must consider various factors like the company’s financial health, market conditions, and long-term objectives. This requires a deep understanding of both internal and external financial data to make strategic decisions that align with the company’s goals.

While other roles contribute to the overall financial strategy, they do so under the guidance of the CFO. For instance, the Treasurer manages the company's cash flow and liquidity, ensuring funds are available for investments, while the Risk Manager assesses the potential risks associated with different investment options to prevent financial losses. The Investor Relations Manager helps communicate the investment strategy to stakeholders but does not determine it. Thus, the CFO is placed at the apex of responsibility for developing the investment strategy.