The report titled ‘The next set of imperatives for CFOs in the Asia-Pacific region’, demonstrates a very good news. As many as 94 per cent of Indian chief financial officers expressed confidence in the nation’s economic future, displaying the highest optimism across the APAC region, according to the latest Deloitte Asia Pacific (APAC) CFO Survey 2023.
According to the report, more than 30 per cent of Asian CFOs have confidence in the nation’s economic future, with 71 per cent of Japanese CFOs being more neutral as compared to their Australian (51 per cent) and Chinese (49 per cent) counterparts. Indian CFOs’ confidence underscores the resilience and proactive strategies that Indian financial leaders adopt during global economic uncertainties, Deloitte said in a statement.
The report titled ‘The next set of imperatives for CFOs in the Asia-Pacific region’, demonstrates the business imperatives facing organisations of 276 leading CFOs in the region. It highlights CFOs’ responses to the near-term business landscape marked by economic fluctuations, slowing growth, surging inflation, and elevated interest rates.
Closely mirroring the economic sentiments, the survey also reveals a distinct sense of optimism amongst Indian CFOs regarding their companies’ financial prospects. With 85 per cent demonstrating some degree of optimism, Indian CFOs exhibit a more positive outlook towards their organisations’ outlook compared with their counterparts in other Asia Pacific nations, such as Australia and Japan, where the sentiment is more neutral,” it said.
Global economic slowdown or recession (59 per cent), geopolitical issues (53 per cent), and digital and technology disruption (27 per cent) have emerged as the top three external risks concerning Indian CFOs. Securing and retaining talent (59 per cent), disruption in products or markets (41 per cent), and technology implementation/digital disruption (35 per cent) have been cited as key internal risks.
CFOs differ in their approach towards managing the risks across Asia Pacific. About 78 per cent of Indian CFOs prioritise technology automation to minimise risks, compared with Australia, China, and Japan that focus on managing costs (40 per cent), improving monitoring of operational procedures (44 per cent), and monitoring portfolios and investment decisions (52 per cent), respectively.
In terms of proactive sustainability initiatives by Indian CFOs, adopting public policy positions that promote sustainability and actions to address climate change (65 per cent), encouraging or requiring suppliers and business partners to meet specific environmental sustainability criteria (53 per cent), and using more sustainable materials (55 per cent), topped the list.
(With inputs from PTI)
