Challenging economic conditions and increased regulation is seeing the demand for finance chiefs on boards rising to unprecedented levels, but risks distracting from their primary role.

Research carried out by Ernst & Young of 800 CFOs - both serving and former - from around the world, found that 79% stated that they were now more in demand than ever before for board level roles.

An understanding of boardroom dynamics was seen as the main benefit of taking up the non-executive role for three-quarters (75%) of those polled but concerns that in doing so could potentially distract from their principal fiduciary duties.

Les Clifford, partner and chair of Ernst & Young LLP's CFO Program in the UK and Ireland, said: 'Regulatory pressure is driving a major increase in demand around the world for CFO experience on boards. In many countries, a CFO's financial expertise is not only highly valued, but also mandatory. Additionally, as companies grapple with a volatile economy and the diverging growth trends of developed and rapid-growth markets, they increasingly want good insights and support for cost, risk, and cash flow management - three areas of focus that fall squarely within the CFO's skill set.'

According to the research, 14% of board members at some of the world's largest companies - with annual revenues over US$5bn (£3.1bn) - are now filled by CFOs, up from 8% in 2002. The proportion of audit committee chairs who are serving or former CFOs has doubled in the last decade (41% in 2012, up from 19% in 2002), perhaps reflecting the demand for increased transparency on company balance sheets.

'Although they are crucial, financial skills alone don't necessarily make for a good board member. Many CFOs today have the financial skills as well as a unique combination of analytical, technical and strategic capabilities. This combination of CFO skills makes for a strong addition to the board,' adds Clifford.