PwC Survey Reveals CFO Concerns Related to Coronavirus

• Potential global recession: 80 percent
• Decrease in consumer confidence, reducing consumption: 48 percent
• Financial impact, including effects on results of operations, future periods, and liquidity/capital resources: 48%
• Effects on workforce/reduction in productivity: 42 percent
• Supply chain issues: 34 percent
• Not having enough information to make good decisions: 14 percent
• Lack of a comprehensive/tested company emergency preparedness plan: 6 percent
• Difficulties with funding: 4 percent
• Impacts on tax, trade or immigration: 2 percent
• Financial disclosures, including effects on results of operations, future periods, and liquidity and capital resources: 0 percent

Most Companies Foresee Decreased Revenue/Profits

When asked about the impact they expect COVID-19 to have on revenue and/or profits this year, 58 percent of respondents said they expect to see a decrease, while 40 percent said they still aren’t able to assess what the impact might be. The remaining two percent don’t expect any impact, while no respondents foresee revenue or profits rising.

The Good News: Most Firms Expect to Bounce Back Quickly

We all expect the coronavirus situation to be temporary, although no one can predict when the business world will return to normal after the emergency phase passes. When asked how long they thought it would take their companies to return to business as usual “if COVID-19 were to end today,” 66 percent of respondents said it would take less than a month.

Another 24 percent said it would take between one and three months, eight percent expected it to take three to six months, and the remaining two percent foresaw a bounce-back period of six to 12 months.

“Companies may want to identify an executive with responsibility for assessing and measuring the longer-term impact to the core business and markets in which they operate, “ PwC said in the report.

Authors

Neha De

Neha De is a writer and editor with more than 13 years of experience. She has worked on a variety of genres and platforms, including books, magazine articles, blog posts and website copy. She is passionate about producing clear and concise content that is engaging and informative. In her spare time, Neha enjoys dancing, running and spending time with her family.

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