In today’s rapidly evolving business landscape, financial literacy is no longer a niche skill—it’s a necessity for leaders. According to the latest studies, 80% of board members say financial expertise is crucial for effective corporate governance, yet research shows that only 29% of senior executives feel fully confident in their financial acumen. This gap highlights the need for targeted education, especially for women aspiring to leadership roles.
Indeed, financial literacy is an essential skill for leaders. Senior executives and board members must be able to understand financial reports and key metrics to make informed decisions that drive long-term success. The WOBA Board Readiness Programme, launched by WOBA, is dedicated to empowering women to take on leadership roles in the boardroom.
Targeted at high-performing mid-level managers and experienced women leaders, the programme equips participants with the training and knowledge necessary to step into board positions. Through a mix of in-person and online sessions, participants learn how to use financial data to make strategic decisions and enhance governance and leadership practices, as highlighted by Nevena Dicic Kostic, Head of Programmes at Women on Boards Adria.
Elvir Muhic, Head of Finance at Addiko Bank Sarajevo, led today’s session, which focused on the importance of financial literacy for effective boardroom leadership. The session emphasized how understanding financial reports—such as balance sheets and profit & loss (P&L) statements—is crucial for making informed, strategic business decisions.
“These reports provide a clear view of a company’s financial health and help leaders assess performance and profitability. Financial ratios, such as liquidity, return on equity (ROE), and cost-to-income ratios, also play a critical role in evaluating a company’s strengths and weaknesses. Participants can examine these financial metrics through a practical example, analysing a hypothetical bank’s performance after its first year of operation. This hands-on approach helped them understand how to interpret financial data and apply it to drive business decisions”, notes Muhic.
The session also explored strategies to enhance financial performance, such as improving liquidity by securing loans and attracting long-term deposits. Introducing new products, like housing loans, and adjusting interest rates were also discussed as ways to boost profitability. These strategies help organisations remain agile and adaptable to changing market conditions.
“Risk management was another key topic, where we emphasized the importance of managing external risks like currency fluctuations, interest rates, and inflation. In addition, the session stressed the value of data-driven decision-making. Leaders must rely on financial data to guide their strategies, ensuring informed, future-proof decisions. This is why today’s session was crucial”, adds Muhic.
The WOBA Board Readiness Programme is designed to empower women leaders with the skills to navigate complex financial landscapes and step confidently into board positions. By improving financial literacy and enhancing governance skills, the programme prepares participants to lead organisations toward long-term success.
