Earnings uncertainty will continue to plague organizations this year, according to a new survey by the Association for Financial Professionals.
The 2016 AFP Risk Survey interviewed 335 treasury and finance professionals. Among the key results:
“Against a background of worldwide crises and economic skepticism, treasury and finance professionals need to equip themselves with the tools and resources to effectively manage risks and stay ahead of the curve,” said AFP president and CEO Jim Kaitz.
Despite the earnings uncertainty, and the increasingly difficult task of accurately forecasting risk, the 2016 AFP Risk Survey also found that only half of organizations have plans in place to respond to, and reduce, interest-rate risk and commodity price fluctuation.
“To help organizations respond to the increasingly interconnected global economy, treasury and financial leaders must ensure their analysis and management of risks is equally interconnected. Most importantly, the analysis must be considered in the context of the corporate strategy and risk appetite to ensure financial success in the face of continued volatility,” said Marsh & McLennan Companies’ Executive Director of the Global Risk Center Alex Wittenberg.
Full results of the 2016 AFP Risk Survey, supported by Marsh & McLennan Companies’ Global Risk Center, are available online.