CFO survey: Economic, cyber worries among top concerns

CFOs are no strangers to risk management, but as the finance chief’s position morphs into that of a strategic leader, such competencies have become more sought-after. 

Fifty-two percent of CFOs said identifying and mitigating business risks as a top need skill set, according to a recent survey by Travelers. The total is just under the 62% who highlighted strategic planning and ties with the ability to manage a network of internal and external stakeholders, the survey of 610 CFOs in insurance decision-making roles revealed. 

The findings come as CFOs are seeing their responsibilities evolve to manage “not just financial risk, but also managing risk throughout the whole company,” said Joan Woodward, founder and president of The Travelers Institute, in a statement. 

As finance chiefs gain more responsibility over risk management, they need to juggle a number of ongoing challenges and risk areas that are buffeting their businesses. While the top three worries among finance chiefs are no surprise — economic uncertainty, market competition, and inflation — finance chiefs also pointed to cybersecurity, interest rates and public policies and regulatory compliance as major concerns, according to the report. 

Cybersecurity risks have loomed large in the minds of finance leaders as cybercriminals turn to emerging technologies to try out new scams and attack vectors.  

Scams such as deepfakes — which use AI to create false image, voice or video content — and ransomware have intensified in recent years, with 85% of companies in the U.S. and U.K. pointing to such schemes as an “existential” threat to their businesses. Fifty-three percent of businesses surveyed reported being the victims of such an attack, according to the survey results. 

Ransomware attacks have remained a favored tactic among cybercriminals, often with high consequences for businesses.  

The need to put a proactive risk management strategy in place puts even more pressure on CFOs, who are still juggling a complicated macroeconomic and geopolitical environment. Economic uncertainty and market competition tied for first place on the list of greatest concerns for CFOs — with each highlighted by 33% of those surveyed. 

Still, while risks abound, finance chiefs have also reported areas of optimism. Forty-one percent of CFOs reported being optimistic about the financial stability of their companies, while 32% said the same of customer satisfaction and retention, according to the Travelers study.