Chief financial officers (CFOs) in Southeast Asia (SEA) which includes the Philippines, are significantly more concerned about the global economic outlook compared to their counterparts in Asia-Pacific, a recent Deloitte study said.
When surveyed about their top-of-mind external risks for the next 12 months, 80 percent of SEA CFOs report global economic slowdown as their top external risk — significantly higher than the overall Asia Pacific average of 57 percent.
Findings from the research consolidated into a report titled SEA CFO Agenda: Decoding the CFO’s trilemma, revealed an overwhelming frequency with which SEA CFOs are preparing for worst-case scenarios amidst the ongoing volatility. To avoid being caught off guard by unexpected events, SEA CFOs have been scrutinizing every line item in their financial statements and doubling down on financial planning and analysis (FP&A) and forecasting activities.
However, while SEA CFOs are more concerned about the economic outlook, they are just as optimistic about their company’s financial prospects as their Asia- Pacific counterparts: 50 percent of SEA respondents expressed optimistic sentiments, a figure comparable to the overall Asia Pacific average of 49 percent.
Deloitte said this suggests that SEA CFOs are confident in their ability to manage operational and cash flow disruptions, with many having undergone an intense period of accelerated learning on the back of the COVID-19 pandemic.
