In the current geopolitical environment, which is rife with uncertainty and instability, only just over half of respondents to the 2017 AFP Risk Survey —52 percent—have considered the impact of a geopolitical change or event on their organization’s growth. Equally surprisingly, 39 percent of those surveyed indicate that their senior leaders showed no signs of unease regarding such risks.
This sixth edition of the survey, prepared with the support of Marsh & McLennan Companies’ Global Risk Center, provides insights into the views of US-based corporate financial professionals about the current risk environment, with a particular focus on the political and social risks that crystalized in 2016.
Key Findings
- Greater Earnings Uncertainty: 49% of finance professionals believe their organizations are exposed to greater earnings uncertainty today than three years ago.
- Difficulty Forecasting Risk: 84% of respondents report that forecasting risk is either as difficult as or more difficult than it was three years ago – and they expect that forecasting will only become more difficult in the future.
- Geopolitical Risk Concerns: 52% of treasury and finance functions are considering the impact of geopolitical events on their organizations’ growth.
- The Impact of Geopolitical Risk: The top concerns regarding the impact of geopolitical risks are loss of customers (53%), current volatility risk (49%), and supply chain disruptions (30%).
A majority of finance professionals cite loss of customers/revenue as a key concern with regard to geopolitical risks
