New Report Uncovers How Modern Finance Leaders Manage Risk
"With economic and political uncertainty across so much of the world, we found that finance leaders are struggling to manage risk effectively," said
Among the Risk Revolution's key findings:
Monitoring risks within a business' customer, supplier, or partner base ranked as the top challenge facing finance leaders today, with 38 percent of respondents classifying this as their chief concern. Overall, most finance leaders believe their own efforts to manage, monitor, and predict customer, supplier or partner viability pose a moderate to high risk to their businesses. Forecasting or predicting risk was the number two concern of finance leaders, while the third was growing profitability. External influences, specifically geopolitical risks, technological disruption, NAFTA renegotiations, and the pace of innovation were considered the top four factors that increased business risk over the past year.
Data Data Everywhere, Nor Not a Byte to Eat
Most finance leaders are not effectively managing data to help mitigate business risk. Over 60 percent of respondents report that their data currently exists in organizational silos, with over half reporting difficulty sharing, linking and using data to drive their risk management strategies.
The Future is Here, But Where?
Many finance leaders see promise in automation, yet tools such as blockchain, artificial intelligence, or machine learning are not being leveraged by most of the respondents today. Less than 20 percent of finance leaders indicated that their company is "advanced" in the sophistication of their teams' use of modern risk management tools. Self-created analytics and credit reports rank as the most common tools finance leaders use to manage risk.
Finance leaders have an opportunity to make sense of data and lead cross-departmental collaboration and strategic decision-making. Those who leverage technology and modern tools can implement a cross-functional data strategy to help their organizations better share insights, navigate uncertainties in the market, and manage global risks to grow profitability.
Additionally, a joint webinar, The (R)evolution of Risk Management: Discovering Opportunity in a Universe of Risk, will be hosted by CFO.com and
Note about methodology:
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