Tuesday, 19 March 2013

The CFO’s Number 1 Concern in 2013: Rising Costs (Part 2)

Authored by Asif Khan

Rising costs will always worry CFOs, but what other risks are on their minds? 

  • Supplier compliance. This encompasses elements of supplier relationship management – from delivering what the company needs when it’s needed, at the agreed upon price, to complying with ethical standards. Supplier compliance has dominated recent headlines, especially regarding Wal-Mart’s stronger regulations on unauthorised subcontracting.
  • Economic risks. While there are signs that the economy is improving, companies are closely watching for any wavering indicators of regression that could affect customer spending, currency values and global growth.
  • Effectiveness of internal IT spending. Departments will have a more difficult time justifying major investments in technology. And post approval, there will be more pressure to demonstrate that the actual results were equivalent to the proposed ROI. Something to consider: Taking blind risk is dangerous, but taking risk backed up with the right data and insight is what separates truly innovative companies and the laggards.

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