55% of GCC respondents feel that global business is too easily thrown off course by short-term economic uncertainly
- United Arab Emirates: Tuesday, February 19 - 2013 at 10:29
- PRESS RELEASE
Global business is too easily knocked off course by short-term economic crises, such as the current U.S. debt crisis, according to a global survey of finance and business leaders who hold the Chartered Global Management Accountant (CGMA) designation.
•Only 31% of respondents believe the ongoing U.S. debt crisis will ultimately push the global economy towards recession.
•Despite this 54% expect higher U.S. interest rates, the U.S. credit rating downgraded, and a weaker dollar.
•57% agreed that their organisation must seek new ways to be resilient and less susceptible to macro-economic volatility.
•58% think the U.S. dollar will still be the world's dominant reserve currency in 10 years.
•While awaiting the U.S. government decisions on spending cuts and borrowing limits, 39% of companies are continuing their current practices and riding out the storm. At the same time, 34% are moving into new markets.
CGMA business experts make up the world's largest community of management accountants and guide business decisions across the globe, including at 95 of the world's top 100 brands and 91 of the Fortune 100. They hold senior positions, including CEO, CFO, and Finance Director, and have a broad perspective on the long-term prospects of their organisations, their markets and their regions.
Geetu Ahuja, Head of GCC, CIMA, said, "There will always be another U.S. debt crisis, Arab Spring or Eurozone disaster just around the corner. But business in the region is recovering and with organisations focused on driving growth and innovation, it seems that future crises will have less of an impact and they will regain their footing more easily. By developing long-term strategy plans and entering other markets, companies will find overall stability despite any regional issues. This can be seen as many local companies are expanding throughout the GCC and into places such as South East Asia."
Barry Melancon CPA, CGMA, Chief Executive Officer, AICPA, said, "The repercussions of U.S. debt ceiling and spending decisions will reverberate across the global economy and may touch many of the world's businesses. Management accountants are bracing for short and long-term implications, even as they look for ways to make their businesses less vulnerable to the pulses of geo-political forces."
Five top tips for business leaders to build resilience
It is vital for organisations to adjust their risk radar and anticipate the impact of such scenarios on investment and future growth without being diverted from creating a suitable long-term strategy. This will build resilience in the face of ongoing economic uncertainty.
1.Understand your business model. What creates, and could potentially destroy, value in your business?
2.Harness the power of transparency. Create a line of sight between capital sources and how it will be invested in the sustained success of the business, beyond the short-term.
3.Ensure robust information flows. Build confidence in the right information that drives investment and risk mitigation decisions.
4.Go beyond defining a risk appetite. Have a risk attitude that empowers all in the business to take appropriate risks that drive growth and opportunity.
5.Be clear on the skills and talents you need now for tomorrow. Identify and close potential skills gaps you may have when considering your future business model, markets and innovation agenda.
Articles in this section are primarily provided directly by the companies appearing or PR agencies which are solely responsible for the content. The companies concerned may use the above content on their respective web sites provided they link back to http://www.ameinfo.com
Any opinions, advice, statements, offers or other information expressed in this section of the AMEinfo.com Web site are those of the authors and do not necessarily reflect the views of AME Info FZ LLC / 4C. AME Info FZ LLC / 4C is not responsible or liable for the content, accuracy or reliability of any material, advice, opinion or statement in this section of the AMEinfo.com Web site.