2017 AFP Risk Survey

 

Supported by Marsh & McLennan Companies

2016 was a year marked by extreme volatility and uncertainty: the unexpected outcome of the Brexit referendum, terrorist attacks and an unprecedented election in the U.S. and elsewhere.

 

Managing risk and forecasting earnings in an environment steeped in this is extremely challenging. And new survey results reveal it will continue to be an area of concern.

84%

of finance professionals report that forecasting risk is either as difficult or more difficult as it was three years ago.

Where do you fall? Do you believe forecasting will be more difficult in the next three years?

YESNO

You are in consensus with 51% of finance professionals who too believe that forecasting will only be more difficult in the future

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You are in a minority! 51% of survey respondents anticipate forecasting risk will be more difficult in three years; ONLY 11% believe it will be easier

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Why the unease?

Top risk factors having the greatest impact on earnings in the next three years

Customer satisfaction/retention

33%

Tougher competition

40%

U.S. political and regulatory uncertainty

32%

Geopolitical Risks a Force to Contend With

Geopolitical risks have entered mainstream conversations and are now part of discussions among finance professionals in treasury, finance and operations.

 

A majority of treasury and finance functions—52%—would consider the impact on their organization’s growth and the risks involved from a geopolitical change or event. 

Is Executive Management at your organization concerned about the impact of geopolitical risks?

YesNo

So are 46% of C-Suite and Boards at other companies.  

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They are not alone—39% of C Suite and Boards are exhibiting no signs of concern regarding geopolitical risks, BUT do note almost half of this group are uneasy about geopolitical events.

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MAYBE Geopolitical Events are the New Normal

If so, how can you help your organization prepare to deal with geopolitical events and mitigate their risks? Check out what your treasury and finance peers are doing at their companies.

2017 AFP Risk Survey

Thursday, February 23

3–4 p.m. ET

Register for the Webinar

Benchmark your organization’s risk management structure by ownership type and revenue.

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