CFOs more concerned by risk of rising prices

22 February 2013

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22 February 2013 | Adam Leach

Concern among chief financial officers about rising prices in the supply chain has increased over the past 12 months, according to a survey.

The CFO Survey 2013, published today by 4C Associates found the number of finance chiefs that see price risk as their biggest threat has increased markedly since last year. The 2013 survey reports that it is the biggest concern for 65 per cent of respondents, up from 48 per cent from the 2012 edition.

Commenting on the finding, Ed Ainsworth, managing director, 4C Associates, said: “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.”

Reputational risk retained its place as the second biggest threat, although it was chosen by just 16 per cent of respondents compared with 36 per cent in the 2012 survey. Supply risk, up from 16 to 19 per cent, was the third biggest risk.

The survey, which was completed by more than 40 senior finance leaders, also found organisational change is the area where cost cutting is most focused. Half of respondents identified it as their primary target, while the supply chain was chosen by 20 per cent, procurement by 15 per cent, and demand management by 6 per cent.

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