Global Recession, Company Revenues Top Finance Execs' COVID-19 Concerns
Thursday, March 19, 2020
The potential for COVID-19 to lead to a global economic downturn is the top concern for finance leaders in the U.S. and Mexico. However, 90% of finance leaders say their business would return to normal in less than three months if COVID-19 were to end immediately.
Released on March 16, 2020, by PricewaterhouseCoopers, COVID-19 CFO Pulse Survey: What Finance Leaders are Focused On reveals how chief financial officers and finance executives in the U.S. and Mexico plan to react to the COVID-19 outbreak and what business and economic impacts they anticipate in the coming weeks and months.
Key findings include:
- All finance leaders say their business is experiencing some impact as a result of coronavirus.
- 80% indicated that a potential global recession rated among their top-three concerns with respect to COVID-19.
- 58% expect a decrease in their company’s revenue and/or profits this year.
- 54% of respondents say the outbreak has the potential for “significant” impact to business operations.
- 48% of finance leaders expect to change disclosures.
- 34% say impact has been limited to specific regions, but that they are monitoring developments closely.
- Just 14% of finance leaders reported that their company is not considering any financial actions as a result of COVID-19.
- Only 30% are considering supply chain changes.
“Uncertainty, especially regarding both the length and severity of the COVID-19 pandemic, is a predominant concern for chief financial officers,” said Tim Ryan, PwC U.S. chair and senior partner. “However, with 90% of CFOs and finance leaders optimistic that they can return to normal business operations fairly quickly if the pandemic stops soon, this should signal a strong sense of urgency for business leaders to work closely with government and public health officials to help address the crisis.”
PwC has also created the COVID-19: Navigator – an online tool that helps companies assess the potential impact to their business and gauge readiness to respond to disruption created by the coronavirus pandemic.
Of the 50 finance leaders surveyed from March 9-11, 2020, 80% are from Fortune 1000 companies, with others in healthcare non-profit associations or in privately held companies, and 44 respondents are from the US whereas 6 are from Mexico. The survey will repeat every two weeks to track changing sentiment and priorities.
View the findings and insights.