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PwC CFO COVID-19 Pulse Survey, the First in a BI-Monthly Series That Shows How CFOs and Finance Leaders Plan to React to COVID-19

PwC CFO COVID-19 Pulse Survey, the First in a BI-Monthly Series That Shows How CFOs and Finance Leaders Plan to React to COVID-19

Newly released by PwC, COVID-19 CFO Pulse Survey: What finance leaders are focused on reveals how chief financial officers (CFOs) and finance executives in the US and Mexico plan to react to the COVID-19 outbreak and what business and economic impacts they anticipate in the coming weeks and months. Fifty finance leaders weighed in from the US and Mexico from March 9 – 11, 2020.

The potential for COVID-19 to lead to a global economic downturn is the top concern for finance leaders in the US and Mexico. However, 90% of finance leaders say their business would return to normal in less than 3 months if COVID-19 were to end immediately. Other key findings include:

  • All finance leaders say their business is experiencing some impact as a result of coronavirus
  • 54% of respondents say the outbreak has the potential for “significant” impact to business operations
  • 58% expect a decrease in their company’s revenue and/or profits this year
  • 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
  • 80% indicated that a potential global recession rated among their top-three concerns with respect to COVID-19
  • 48% of finance leaders expect to change disclosures

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“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 US 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.

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“Most finance leaders surveyed seem to be optimistic about a resolution to the spread of the coronavirus and as a result are focused on near-term versus long-term solutions to managing costs,” said Amity Millhiser, PwC US Vice Chair and Chief Clients Officer. “However, if conditions continue to deteriorate we would expect to see a pullback in long-term investment spending as companies move to longer-term cost containment strategies.”

Of the 50 finance leaders surveyed, 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.

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