Sherisa Nuesa: The CFO built on risks

MANILA, Philippines - Business risks make some of the toughest managers and well-trained executives shiver. Risks force numerous industry giants to change their company’s paths or even turn back and go back to the drawing boards.

But Sherisa Nuesa, one of the country's top chief finance officers (CFOs),  has made a career out of taking risks head on.

With more than two decades of senior management experience in the fields of real estate (Ayala Land Inc.), water infrastructure (Manila Water Co.), electronics (Integrated Microelectronics Inc.), and conglomerate (Ayala Corp.), Nuesa shares her thoughts on the climb to the top.

As CFO of various companies under the country’s oldest conglomerate Ayala Corp., Nuesa has handled not only controllership and treasury functions but also strategy formulation, business development, and risk management.

“I consider myself lucky to be part of a number of major activities that were part of the strategy crafting and execution game, and at the same time, professionally empowering,” Nuesa said.

Fresh from graduating with the highest honors from the Far Eastern University’s Institute of Accounts, Business and Finance in 1974, Nuesa joined Ayala Corp. as a junior financial analyst in 1975.

She has since moved up several positions (group controller of Ayala Land and CFO of Manila Water and IMI), all the while beefing up her know-how at Ateneo-Regis Graduate School of Business, Stanford University in California and Harvard Business School.

Proving her competence in leading the Commercial Centers Group of Ayala Land and the company’s listing in 1991, Nuesa was set up for new risks at the height of the Asian financial crisis in 2000.

“A truly memorable part of my career was being part of the metamorphosis of Manila Water,” Nuesa said.

“Coming from a rock-solid Ayala Land, I got my initiation in an environment of financial, operational, regulatory and organizational challenges,” Nuesa added.

At that time, the capital intensive east zone concessionaire was barely making money while cash and credit were tight. Around 90 percent of Manila Water’s employees were ex-government workers in need of training and exposure.

“I saw how trust, empowerment and motivation moulded them into a capable, cohesive, engaged and dedicated army, and they made the turnaround possible,” Nuesa said of Manila Water’s nine-year turnaround.

Manila Water, which went public in 2005, even won a number of global and local awards in management, finance and sustainability, including IFC Global Client Leadership and Institute of Corporate Governance.

The initial public offering of Manila Water was the first international listing after the Asian financial crisis and was 15 times oversubscribed in the international market.

The recognition did not end with the company. Nuesa bagged the ING-Financial Executives’ Institute of the Philippines (ING-FINEX) CFO of the Year award in 2008.

Free from the challenges of Manila Water, the CFO was transferred to IMI that faced weak electronics demand due to the global financial crisis in 2009. The crisis prompted IMI to downscale some activities while at the time expanding by acquisition.

“Still, we had modest success in fundraising, in a well-received Philippine Stock Exchange listing, and in turning around a loss position to a profit mode,” Nuesa said.

The challenges were part of the excellent training enjoyed by an Ayala conglomerate CFO, Nuesa said.

“We are proud of the Ayala values, especially as corporate governance, national relevance and environmental sustainability are part of core objectives,” Nuesa said.

So far, Nuesa serves as the president and director of ALFM Funds Group. As a Group, ALFM has more than P100 billion in net asset value.

With the wealth of experience in managing risks and turning these into opportunities for growth, the outstanding CFO should have the key elements to become successful.

“The effective CFO I believe, is a natural risk officer, a crisis manager, and a driver of good corporate governance,” Nuesa said, adding that CFOs are in a strong position to analyze risks and at the same time  promote corporate agility.

Aside from the usual numbers crunching, CFOs can also aid in formulating and executing strategy, Nuesa said.

Moving forward, current and aspiring CFOs have lots of challenges to face.

The constantly shifting business landscapes, new emerging risks, global developments like the Southeast Asian market integration and regulatory pressures make business demands more complex, Nuesa said.

For its part, ING-FINEX is again on the lookout for the country’s outstanding CFO. The ING-FINEX CFO of the Year awards is a continuing program of honoring the best CFOs.

“In these times, when good governance and a thriving economy make us more hopeful as a nation, it is incumbent upon the Filipino businessmen to constantly find ways to contribute meaningfully to national progress, to get engaged in worthwhile advocacies,” Nuesa said.