What risks concern CFOs | Digital insurance

Earlier this year, Travelers released the findings of its CFO 2024 study, which examined the issues facing leaders and identified what causes them the most concern and, at the same time, what creates the most optimism for the future .

Joanne Balous, vice president of sales and marketing at Travelers, provided some insight into the results of the study, which took place in early 2024. “We asked what headwinds they were facing, what their concerns were and what made them optimistic. The survey allows us to see what CFOs are thinking so we can respond accordingly to better serve our clients and build stronger relationships.”

According to the survey, the top 10 factors of greatest concern were:

· Economic uncertainty (33%)
· Market competition (33%)
· Talent acquisition and retention (32%)
· Inflation (30%)

· Customer satisfaction and retention (27%)
· The financial stability of their companies (26%)
· Cyber ​​security (24%)
· Interest rates (21%)
· Public policy and regulatory compliance (20%)
· Employee satisfaction and engagement (19)

Like many positions in every company, the skill sets needed by today’s CFOs are evolving, and a major concern is hiring and retention, as much of a company’s business continuity and brand reputation is tied to this individual. Balous shared that the position is multi-faceted, now going beyond financial management and extending into the areas of cybersecurity and macroeconomic concerns such as inflation and jobs reports and workforce challenges. “After the pandemic, we had a big resignation and people looked at their jobs differently. How do you retain your employees has become an issue that has come under the CFO’s responsibilities.”

Balous said that when they need information, CFOs turn to subject matter experts, such as insurance agents and brokers, for advice on loss management. Internally, she says CFOs meet with the risk manager at least once a week and sometimes once a day. She added that 24 percent of CFOs in the study indicated they rely on their insurance carrier to help manage risk and help mitigate losses.

The good news is that there are areas where CFOs are optimistic, and they’ve identified these factors that affect that optimism:

· Financial stability of the company (41%)
· Corporate reputation (37%)
· Customer satisfaction/retention (32%)
· Artificial Intelligence (30%)
· Employee satisfaction and engagement (29%)
· M&A activity (24%)
· Talent acquisition and retention (23%)
· Shareholder satisfaction (21%)
· Their company’s intellectual property (20%)
· Diversity and Inclusion (20%)

Balous said 66 percent of companies are investing in digital capabilities and hiring consultants where needed to help them manage the process. AI is also a priority, especially how companies will use it, the risks and exposures it creates and investment opportunities. CFOs are very focused on the future and the opportunities available to their firms.