Subscribe to CIO Magazine »

Volatile pricing biggest CFO headache, new report finds

4C Associates survey suggests supply, reputational risk also among major concerns

A majority of finance leaders consider volatile prices to be the main risk facing their companies for 2013, according to a survey of finance chiefs carried out by cost transformation consultancy 4C Associates.

The survey of nearly 100 respondents, saw 65 per cent vote volatile prices as the primary risk. Supply and reputational risk were selected by 19 and 16 per cent among the other major risks for the year ahead.

Faced with a difficult financial climate, 49 per cent of CFOs highlighted operational efficiency improvements and cost reduction as the driving elements of their 2013 strategy. 42 per cent underlined increased sales as the primary objective for 2013.

Asked whether there were additional savings opportunities to be found in their organisations through improved procurement, 68 per cent replied affirmatively. A further 58 per cent felt there were additional savings opportunities accessible through optimised supply chain and logistics practices.

Commenting on the findings, 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.”

“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,” he added.

Follow CFO World Australia on Twitter: @CFOworld_AU, or take part in the CFO World conversation on LinkedIn: CFO World.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

References show all
Comments are now closed.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: 4C Associates, CFO role
Latest Blog Posts
  • Information Management
    Valuable data can be a needle in a haystack, but by leveraging the value in existing information assets, organisations can generate real and achievable gains in revenue generation, IT investments and productivity gains. This whitepaper discusses how Information Management (IM) is a multi-faceted discipline that can be employed to meet or exceed your business objectives.
    Learn more »
  • Smarter Data Centre Outsourcing: Considerations for CFOs
    Deloitte explores the business and finance implications associated with managing data centres. This paper outlines the options available to structure an organisations data centre and complementary IT services and provides the key considerations that need to be reviewed when determining which option works best for them.
    Learn more »
  • 10 essential elements for a secure enterprise mobility strategy
    Best practices for protecting sensitive business information while making people productive from anywhere.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.
Latest Jobs
Salary Calculator

Supplied by

View the full Peoplebank ICT Salary & Employment Index

Recent comments