Home » Media

Cost management function: strategic and operational profile as a possible setup

A modern cost governance structure must be able to pursue relevant strategic objectives in line with current business dynamics. In particular, it must be able to ensure alignment with the short- and long-term objectives specified by the top management and in the strategic plan and therefore to act through a wide range of specific levers: direct or indirect intervention on all cost items, demand management in a forecasting perspective, advanced budgeting capabilities, direct monitoring of investments and project costs, optimization of the operating model (e.g. make-or-buy decisions).

With respect to the more directly operational objectives, the cost governance structure must pursue adequate cost control (e.g. through appropriate planning and forecasting models, monitoring and reporting, analysis and benchmarking) and (directly or indirectly) initiate cost optimization interventions (also through restructuring or crash program measures).

Related articles​

BankingHub-Newsletter

Analyses, articles and interviews about trends & innovation in banking delivered right to your inbox every 2 weeks