Commodity prices volatility is the biggest risk – The CFO Summit

Commodities , Economic Indicators , Europe Feb 28, 2013 No Comments

The CFO Summit 2013The Economist recently held an event for European Finance Leader called the CFO Summit in London. Over 100 CFOs and finance leaders met to discuss a lot of different issues.

Among these issues were:

  • The outlook for policy, investment and the global economy over the next 12 months and how this impacts the CFO and influence on the board
  • What steps can be taken to balance strict risk management with company growth ambitions. Should CFOs delay investments or pursue growth?
  • How CFOs can prepare their business for growth in the year ahead by becoming a leader in the field of innovation
  • Which strategies can be deployed in finance leaders’ push for growth in both mature and emerging markets—and what opportunities and challenges can CFOs expect to encounter in 2013 and beyond?

The CFOs were asked which aspects of supplier risks they are most concerned about. Here are their answers…

Supplier risk

Although the reputational risk went drastically down from last year, which is surprising considering the horse meat scandal all across Europe, the most interesting fact is that CFO now consider, almost 2/3 of them, that he price risk is the most important one to address. The main reasons given by respondents were volatile commodity prices and an inability to pass any increases on to consumers. In this context, analyzing and modelling price risk is crucial to any large organisation.

You can find all the results in the CFO Survey 2013.

Pascal Blanc

Pascal has implemented numerous software solutions in the areas of procurement, sourcing, spend management, supplier evaluation and performance. His clients include Fortune 500 companies in Europe, Asia and North America. He is a co-founder of Source & Procure.

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