Washington, D.C., Feb. 14, 2023 — Chief Monetary Officers view inflation and value of capital as the highest two dangers going through their companies as they put together for slower progress over the following 18 months, in response to findings from a brand new survey carried out by the Workplace of the CFO Options observe at FTI Consulting, Inc. (NYSE: FCN), in collaboration with the finance publication CFO Dive. The survey additionally marks the primary time FTI Consulting has obtained responses from CFOs and finance leaders around the globe.
“This 12 months’s survey outcomes echo what we’re listening to from our CFO purchasers,” stated Gina Gutzeit, International Chief of the Workplace of the CFO Options observe at FTI Consulting. “By most accounts, the worldwide financial system is heading for a slowdown in 2023. Rising inflation, excessive rates of interest, escalating worldwide battle and lingering COVID-19 results are simply among the elements that proceed to place downward strain on world financial progress.”
The survey recognized six extra key insights about CFO priorities:
- Defending Margin: For a lot of firms, now bracing and planning for an anticipated world recession, CFOs shall be anticipated to actively handle each income pipeline and enterprise prices, with deal with productiveness and automation.
- Profitability Analytics: Actual-time transparency into present and forecasted profitability utilizing analytics is a rising precedence for CFOs seeking to make sound choices for his or her companies in occasions of heightened competitors and financial instability.
- State of affairs Modeling and Forecasting: Overwhelmingly, respondents indicated bettering forecast accuracy and automation deploying driver-based rolling forecast capabilities shall be essential to handle by the volatility. Higher focus is being positioned on optimizing working capital, money move and liquidity, usually resulting from current will increase in borrowing prices.
- Workforce Productiveness: Expertise continues to be a excessive focus space for CFOs as they handle hybrid working fashions, remedy expertise shortages and handle growing work/life steadiness expectations from youthful workers. Throughout the globe, 69% of firms had workers who labored absolutely or partially remotely, with solely 21% of firms indicating that they had been absolutely again within the workplace.
- Enhanced Reporting Expectations for Environmental, Social and Governance (“ESG”): Investor calls for and pending regulatory modifications are two of many essential elements driving CFOs to guage reporting wants. Greater than half of all respondents indicated that they might be spending extra time on ESG reporting and controls over the following 18 months.
- Rising Investments in Finance Know-how: Finance expertise has maintained its standing as a high precedence for CFOs. Greater than half (51%) of finance leaders stated their function required extra deal with expertise implementation in 2022, ensuing from confirmed options from cloud-based enterprise useful resource planning (“ERP”) and enterprise efficiency administration (“EPM”) applied sciences.
“With the financial system headed for decline in actual GPD, it will likely be important for CFOs to handle by the financial volatility by deploying driver-based state of affairs modeling, managing money and liquidity runway, offering profitability analytics, and bettering productiveness with automation applied sciences,” stated David White, a Senior Managing Director within the Workplace of the CFO Options observe at FTI Consulting. “Now could be the time for CFOs to have these value-creating actions in place with an financial downturn looming.”
Learn the whole survey report, On the Horizon: FTI Consulting International CFO Survey Report 2023, on the FTI Consulting web site.
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