CFOs worried about economy, optimistic about their own companies: survey

Another day, another report that shows anxieties over the current economy among business leaders.

Finance executives are concerned with an uncertain economy, inflation, and the labor market, but feel optimistic about their own companies’ performance, according to a CFO survey from insurance giant Travelers.

Topping the list of CFOs’ greatest anxieties were economic uncertainty and market competition: A third of respondents identified both as concerns. Following that were talent acquisition and retention (32%), inflation (30%), and customer satisfaction and retention (27%).

Respondents’ greatest source of optimism was the financial stability of their own companies, which 41% put on top of the list. Following that were corporate reputation (37%), customer satisfaction and retention (32%), artificial intelligence technology (30%), and employee satisfaction and engagement (29%).

Travelers surveyed more than 600 CFOs in insurance decision-making roles at companies with 500 or more employees. Respondents represented an array of industries, including transportation, manufacturing, healthcare, and technology.

Two-thirds of respondents said they were solely responsible for purchasing commercial property and casualty insurance.

Upskilling. Here’s another finding that’s no surprise to CFOs. Travelers asked respondents to rate which skills were most vital in their role. What they found: The results reinforced the idea that the CFO’s remit has shifted from financial reports to a greater emphasis on partnerships, strategy, and leadership, per the report.

Strategic planning topped the list of most valuable skills, chosen by 62% of respondents. A majority of respondents also valued two other skills: an ability to manage stakeholder relationships, and identifying and mitigating business risks (52% each). Nearly half (48%) of the respondents said the job also requires charismatic leadership and strong communication skills.

Most (70%) of respondents said mergers and acquisitions activity moderately or highly impacts the responsibilities of the CFO. As the CFO of a public healthcare company told Travelers: “The process of assessing and managing financial risks became more complex [due to M&A]. I had to identify and mitigate potential risks associated with the integration.”