forbes.com
Global CFOs Cite Economic Uncertainty, Cyber Threats, and Labor Costs as Top Risks
A global survey of 1,215 executives reveals that economic conditions, cyber threats, and rising labor costs are the top near-term and long-term risks for CFOs, driven by interconnected global factors including deglobalization, geopolitical tensions, and technological advancements.
- How do the emergence of AI and escalating geopolitical risks specifically influence CFOs' cybersecurity concerns and strategies?
- These 'forever risks' stem from interconnected global factors: deglobalization, trade barriers, geopolitical tensions (e.g., US-China relations, the war in Ukraine), shifting fiscal and monetary policies, demographic changes, and immigration policies. These factors impact labor supply, interest rates, inflation, supply chains, and consumer spending, creating economic uncertainty. Cybersecurity concerns are heightened by AI's dual role: improving threat detection while also enabling sophisticated attacks.
- What are the most pressing near-term and long-term risks facing CFOs globally, and what interconnected global factors contribute to these concerns?
- The top three near-term risks for CFOs globally are economic conditions (including inflation), cyber threats, and rising labor costs, according to a Protiviti and NC State University survey of 1,215 executives. These risks are also considered the most significant long-term concerns, highlighting their persistent nature. CFOs across the board—including those working with CEOs and board members—share this assessment.
- What are the key strategic implications of these risks for CFOs' 10-year outlook, and what actions are needed to mitigate them effectively considering resource constraints and organizational resistance to change?
- CFOs must prioritize cost optimization using AI, enhance cybersecurity vigilance (especially concerning AI-enabled attacks and regulatory compliance), and develop comprehensive talent management plans to address labor costs, skills gaps, and succession planning. The increasing interconnectedness of these risks necessitates a holistic approach, acknowledging how economic instability exacerbates talent acquisition challenges and influences cybersecurity threats. Addressing technical debt and resistance to change within organizations will also be critical.
Cognitive Concepts
Framing Bias
The article frames the risks facing CFOs as primarily economic, cyber, and talent-related. While these are significant, the framing might downplay other crucial risks. The emphasis on CFO perspectives, and the constant linking of various challenges back to their implications for financial performance, frames the issues through a predominantly financial lens, potentially overshadowing social, environmental, or ethical considerations. The headline, if there were one, would likely further emphasize these three areas, reinforcing the framing bias.
Language Bias
The language used is generally neutral and objective, using terms like "risks," "concerns," and "challenges." However, phrases like "forever risks" are somewhat loaded, suggesting a level of inevitability and permanence that might not fully reflect the dynamic nature of these challenges. While this isn't highly charged, more precise language could avoid potentially exaggerating the issue.
Bias by Omission
The article focuses heavily on the perspectives of CFOs and largely omits the viewpoints of other stakeholders such as employees, customers, or government regulators. While acknowledging limitations of scope, the lack of diverse perspectives could limit the reader's understanding of the complexities of the issues discussed. For instance, the impact of economic uncertainty on employees is not directly addressed, only its impact on company profitability. The impact of regulatory changes on customers or smaller businesses is also largely absent.
False Dichotomy
The article sometimes presents a false dichotomy, particularly in its discussion of AI. It frames AI as both a solution to cybersecurity threats and a tool used by cybercriminals, implying a simplistic eitheor scenario. The nuanced reality is that AI's impact is complex and multifaceted, offering both opportunities and risks simultaneously. This oversimplification could lead readers to misinterpret the actual capabilities and implications of AI.
Sustainable Development Goals
The article highlights significant concerns among CFOs regarding economic conditions, inflationary pressures, rising labor costs, and talent shortages. These factors directly impede decent work and economic growth by hindering business profitability, impacting employment opportunities, and creating uncertainty in the labor market. The decreasing number of students taking CPA exams further exacerbates the talent pipeline risk, threatening future economic growth and the availability of skilled labor.