Survey: Customer Satisfaction the Top Concern for Finance Pros
- By AFP and Oliver Wyman
- Published: 2013-02-05
What will be the biggest threat to companies’ earnings in the next three years? The second annual AFP/Oliver Wyman risk survey asked that of more than 500 senior financial professionals and the answer was surprising. Financial and macroeconomic risks have been top of mind since the United States entered a recession in 2007. But this year, 44 percent of respondents cited “customer satisfaction” as their greatest concern.
The companies that make up the Standard & Poor’s 500 index currently have more than $1 trillion of cash on their balance sheets. As a result, senior finance executives are not as worried about risks involving credit and liquidity. Instead, they see their main risk as more demanding and price sensitive customers. After years of cost cutting, many financial professionals believe their company will only prosper by growing their customer base.
Our analysis—summarized in a forthcoming report on how to cope with increasing earnings uncertainty to be released on February 26—suggests that qualitative risks outside of the traditional purview of treasury and finance will have a more immediate and meaningful impact on corporate performance. In order to remain competitive in a new age of global uncertainty, senior financial professionals must take a different approach to manage these rapidly evolving risks and ever more unpredictable financial results.
Copyright © 2013 Association for Financial Professionals, Inc.
All rights reserved.
- Effect of TAG Deadline on Corporate-Bank RelationshipsWith the FDIC poised to eliminate unlimited deposit insurance at the end of the year, the most immediate impact on corporate treasury should be to their banking relationships. Treasurers should be asking their banks some important questions.
- Case Study: Creating an FP&A Group in the Middle EastIn Abu Dhabi, the capital of the United Arab Emirates, there has been a conscious effort to diversify the economy away from oil. Mubadala, a government-owned investment arm and development company, executes on the mandate to diversify the economy of Abu Dhabi in line with its Economic Vision 2030 plan.
- Case Study: A Greek Treasurer Prepares for the WorstThe collapse of the Greek economy has treasurers there under excruciating pressure to perform basic, but critical, tasks such as payroll, A/P and A/R without the tools that most treasurers take for granted. No one knows this harsh reality better than Marianna Polykrati, group treasurer at Greek food conglomerate Vivartia.
- Best Practices: Managing Earnings RiskUnpredictable earnings are jeopardizing many once-solid business models. Corporates must make difficult decisions related to their long-term capital investments, deployment of available cash, and the pricing of their products.
- How One Treasury Group Operates in EuropeThe sovereign crisis in Europe has highlighted the need for sound operating practices in the region. To withstand the crisis and its possible adverse outcomes, companies need to ensure continuity of operations by protecting and mobilizing liquid assets, securing funding, and managing foreign currency exposures.