CFOs are battening down the hatches worldwide and pivoting to manage financial headwinds, McKinsey’s CFO Pulse Survey shows.
The survey highlights that CFOs are reshuffling priorities in light of financial pressures and risks, gripping the global economy.
Rising interest rates (46%) and inflation (32%) both topped the risk factors financial leaders were scratching their heads most about.
Responses were gathered from more than 200 company financial leaders, two thirds of whom were company and unit CFOs based in more than 30 countries.
There’s probably no surprise to most, that supply chain disruptions were the third-highest impediments to company growth in the next 12 months – reported as a risk by 26% of CFOs.
“Over the past year, surveyed financial leaders’ priorities show a big shift toward pricing away from M&A and strategic leadership,” McKinsey says.
Financial risk management a top-three priority
Financial risk management, long-term planning and resource allocation and cash management and capital structure were highlighted as the top three priorities by CFOs. These differed from organisational priorities.
Strategic planning, financial risk management and long-term planning and resource allocation rounded out the top three for organisations.
CFOs looking to influence familiar territory
“The results suggest that many CFOs are prioritising the areas that they can affect directly,” McKinsey says.
“While proper strategic planning is important for the entire organisation to manage uncertainty, financial leaders may not see it as a top priority as they very often don’t solely lead that process. As for the misalignment on budgeting and forecasting, CFOs may view them as areas that are well under control and don’t need as much of their focus.”
Access the results of McKinsey’s latest CFO Pulse Survey.