Monday 25th February, 2013
A survey carried out by 4C Associates, a leading cost transformation consultancy, has revealed that 65 per cent of finance leaders consider volatile prices the main risk for 2013. Supply and reputational risk were selected by 19 and 16 per cent of respondents.
The CFO Survey was carried out amongst attendees of The Economist's CFO Summit 2013. More than 100 finance leaders attended the event to discuss issues affecting the role of the CFO.
Ed Ainsworth, Managing Director at 4C Associates, said: "With companies spanning across more and more territories, it is no surprise that risk management is becoming an increasingly pivotal element of business strategy."
He added: "In terms of price risk, companies are finding it difficult to pass increases on to consumers and consequently have to work with tighter margins and less room for error."
"The current climate further reinforces the need for businesses to implement effective risk analysis and cost transformation initiatives, if they are to remain successful."
Asked whether there were additional savings opportunities to be found in their organisations through improved procurement, 68 per cent said yes. Just over half (58%) felt there were additional savings opportunities accessible through optimised supply chain and logistics practices.