Tensions in the Middle East, Ukraine and the possibility of a EU referendum are still on the minds of many company boards
In fact, with over half of respondents citing politics as their key concern, it easily eclipses concerns about the euro area and emerging markets. This is a subject touched upon in a recent Deloitte survey. In the report, Ian Stewart, chief economist at Deloitte, said: “Over the coming months corporate sentiment is likely to be buffeted by the flow of news from overseas and developments on domestic politics. I was struck by how CFOs who filled in the survey later, in mid-December, after the equity market had dropped sharply, reported much lower levels of risk appetite than those answering the survey at the end of November. “It was a similar story last year at the time of the Scottish independence referendum. CFOs who completed the survey before the results of the referendum were in rated external economic and financial uncertainty as being twice as high as those who responded after the results were known. “UK corporates see UK political developments as a significant risk factor this year. The British Chambers of Commerce picked up on this theme last week when it warned political leaders against what it described as ‘tawdry politics’ which could dent business confidence.” Although overshadowed by political risk, marketplace competition was the next biggest concern for FDs. Essentially, FDs have had to adapt to taking on more work, which includes helping to identify differentiators in a competitive market place, both for the organisation and its products and services. So its perhaps unsurprising that the second biggest barrier for FDs in 2015 will be marketplace competition. But according to Grant Thornton, “competition is at the heart of concerns but this shouldn’t be viewed as an unhealthy thing. As the economy starts to thaw faster, competition will make organisations more innovative, look to new markets – especially in territories outside of the traditional EU nations – and focus businesses’ minds on the need to recruit, retain and motivate key personnel.” Image sourceBy Shané Schutte
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.