Four Priorities on the 2023 CFO Agenda: FTI Consulting Global Survey Reveals

Washington News — A global survey conducted by FTI Consulting in partnership with CFO Dive asked senior finance executives worldwide about the key risk factors impacting their 2023 financial management strategies and operational tactics.

The survey showed that persistent inflation and the cost of capital were the top concerns for most CFOs surveyed, at 77.3% and 76.7%, respectively. However, amid rising input costs, 70.4% of respondents viewed pricing power as a significant concern. This was followed by ongoing supply chain challenges (67.1%), talent shortages (66.8%), intensifying competition (66.6%), and concerns over potential cyberattacks (65.8%).

In this context, CEOs and boards will rely more heavily on finance leaders to protect the bottom line. CFOs can expect that boards and senior management will demand greater accuracy in financial performance, cash flow, and liquidity forecasts.

However, the survey also revealed significant challenges CFOs face in meeting these expectations. One common challenge is obtaining the data needed to improve forecast accuracy to support financial planning and analysis (FP&A). Many finance executives (45%) indicated that a lack of operational insights makes forecasting difficult, along with uncertain demand conditions (45%), the potential impact of supply chain disruptions (43%), and changes in contract terms (42%).

Four Key Priorities on the 2023 CFO Agenda

1. Streamline Operations

For many companies, managing financial performance in 2023 will be directly linked to streamlining operations to improve efficiency, gain better insights from FP&A, and enhance overall forecast accuracy. Consequently, more than half (51%) of finance leaders indicated that their future roles will require a greater focus on technology implementation in 2023.

2. Upgrade Financial Systems and Data Insights

47% of respondents will invest in technology, 45% will enhance analytical capabilities, and 44% will improve forecast accuracy. Looking further, 40.8% plan to upgrade ERP and BI technologies, and 39.1% plan to implement enterprise performance management/FP&A solutions, indicating a need to strengthen forecasting capabilities, financial consolidation, and enhance integration across the enterprise architecture.

3. Focus on Talent and Supporting Technology

Meanwhile, demand for finance talent remains strong, with 74.3% of respondents indicating that talent shortages have impacted the efficiency of their finance organizations from "very significant" to "moderate" levels. As a result, the vast majority of finance executives (94.1%) will devote more or equal effort to talent attraction and retention in 2023. Within finance organizations, financial reporting/compliance, financial technology, and accounting/controls are the three most sought-after talent areas.

However, three years after the start of the pandemic, companies are still struggling with hybrid work models. Globally, 59.2% of companies still operate in a hybrid model, and 69.4% stated they will maintain the same or higher levels of remote work in the coming months. When asked about the main challenges of supporting a remote workforce, technology emerged as the top answer. Although solution providers quickly entered the market, CFOs are still grappling with solutions for achieving efficient remote work, including collaboration, training, and maintaining productivity.

4. ESG Reporting and Controls

ESG remains an evolving issue, with more than half of respondents indicating they will devote more time to ESG reporting and controls in 2023 and beyond. Nearly 90% of respondents said they will invest more or equal effort in ESG matters. Additionally, 46% of large enterprises indicated they feel significant pressure to improve their ESG and sustainability approaches.

Survey Methodology

This survey collected 304 responses from executives in North America, Asia-Pacific, and Europe, the Middle East, and Africa. Over 86% of respondents held the title of CFO, Vice President of Finance, Chief Accounting Officer, or Finance Director, with the remainder being financial controllers, treasurers, or internal auditors.

The largest number of responses came from companies (32.9%) with annual global revenues between $1 billion and $5 billion, so overall results may be slightly skewed toward that size range. The remaining responses came from companies with annual revenues between $100 million and $500 million (21.7%), $500 million and $1 billion (26%), and over $5 billion (19.4%).

To read the full report, visit:https://www.fticonsulting.com/global-cfo-survey-2023