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Businesses ‘too sensitive’ to economic crises, research says


CIMA & AICPA study finds short-term uncertainty easily spooks global players

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Global finance chiefs think businesses are too sensitive to economic crises, according to a market survey conducted by the Chartered Institute of Management Accountants (CIMA) and the American Institute of CPAs (AICPA).

The survey, which polled over 1,300 senior finance executives, saw 60 percent of respondents opining that businesses are too sensitive to economic crises. Only 31 percent of respondents felt the on-going US debt crisis will ultimately push the global economy towards recession.

Despite this, more than half (53 percent) expected higher US interest rates and 70 percent anticipated a weaker US dollar. Around 57 percent agreed that their organisation must seek new ways to be resilient and less susceptible to macroeconomic volatility.

Commenting on the findings, Charles Tilley, chief executive of CIMA, said, “There will always be another US debt crisis, Arab Spring or Eurozone disaster just around the corner. This uncertainty simply cannot drive business strategy.”

Tilley felt that such ‘grey swans’, as some business commentators have termed them, are prompting organisations to cut spending and investment at a time when innovation is absolutely vital to global economic growth.

“Indeed the seizing of opportunities is key to long-term survival and so we must all plot a suitable course between risk and innovation, managing the approach and mitigations put in place to address these uncertainties,” he concluded.

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Businesses ‘too sensitive’ to economic crises, research says
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