CFOs cite long-term, financial impact of global pandemic as top challenge

A majority of CFOs interviewed see the long-term and financial impact of the global pandemic as one of their top challenges over the next three years, according to a survey.

The most pressing issue at hand for CFOs (chief financial officers) is long-term business and financial impact of global pandemic, with almost 80 per cent of respondents listing this as their top challenge over the next three years, according to the CFO survey by executive search firm Stanton Chase.

Almost the same number of CFOs cited future economic volatility and global recession as one of their top concerns, although the two are closely related, it noted.

A third of CFOs surveyed continued to prioritise digital transformation and the ability to keep pace with digital trends and innovation, and roughly the same number of respondents again listed industry disruption and increased competition as challenges they anticipate in the near future, it added.

The CFO survey 'Trial By Fire: How CFOs Are Stepping Up Amid The Crisis' was conducted with the help of over 250 CFOs from around the globe, including in India.

The survey further revealed that about 86 per cent of the CFOs said adapting existing business model to thrive within future economy should be the priority for the next five years.

For the same, 58 per cent indicated investment in emerging technologies and systems and 54 per cent stated talent management strategies and practices, including recruitment, retention and succession planning will be priority.

Meanwhile, about 36 per cent pointed towards supply chain redesign and modernisation while 28 per cent believed in environmental sustainability and social responsibility as the future priority.

"The role of CFOs and their priorities have changed over the past 12 months. The unprecedented 2020 highlighted some additional responsibilities assumed by CFOs, and in their role as the corporate nerve center they cited the need to focus on managing costs and liquidity, supporting strategic changes, leadership, and management all while maintaining a focus on communication with key stakeholders and providing a sense of stability and calm," Stanton Chase APAC Leader CFO Practice Amit Agarwal said.

The survey also revealed that technology has helped CFOs in hiring and employee management.

CFOs are increasingly acknowledging the importance of developing and attracting talent with the requisite technology skills, a trend consistent with Stanton Chase's past survey outcomes.

Half of the CFO respondents reported headcount reduction and efficiencies as the primary benefits of technology, and almost two-thirds (61 per cent) said technology had helped them shift talent and skills requirements.

Therefore, technology is a clear priority for CFOs with over 40 per cent of them suggesting that technology was invaluable in the shift to remote work triggered by the pandemic, the survey added.