2/15/2012 - Financial uncertainty cited as executives' top threat to profit
Among all the things that could adversely impact a business owner's bottom line, financial uncertainty is cited as the biggest threat, a new survey suggests.
According to the Association for Financial Professionals, which polled chief financial officers and other senior executives, nearly three in every four respondents - 72% - said their biggest concern was managing financial uncertainty, specifically with regards to credit, liquidity and interest rates. Other issues that contributed to executives' anxiety levels were supply chain and production disruptions at 38% and litigation issues at 36%.
Umbrella liability insurance is something business owners may want to secure, as this can protect their company should they be sued by a claimant and the damages awarded exceed a standard professional liability insurance policy.
"Uncertainty is here to stay," said Jim Kaltsz, president and CEO of AFP. "One way organizations can take control of rising uncertainty in their earnings is by adopting a new mindset and making more risk-adjusted decisions."
He added that the organizations that do this the most effectively will have the upper hand.