Frankfurt/Main – In the wake of the scandal surrounding the US-UK surveillance programmes, a large number of German Chief Financial Officers (CFOs) are concerned about IT and data security. According to the latest survey of the CFO panel polled regularly by CMS Hasche Sigle and FINANCE magazine, general business prospects have much improved, though, while international finance options are increasingly being considered. Around 100 CFOs of German companies provide anonymous assessments of the market at regular intervals for the survey.
In this fifth survey, more than a third of respondents indicated that it is no longer as easy to ensure protection of corporate data. However, only 12% of CFOs regard the situation as really insecure or very insecure. Almost three quarters of those polled also bear ultimate responsibility for IT. Nearly 40% have already taken action and are examining steps such as encryption, switching service provider or turning away from cloud solutions. Although most are aware of the risks, they do not intend to step up investment in security for the moment.
The general topic of IT has moved up one place to fifth in the list of CFO priorities since last spring. Otherwise often neglected, IT now has the highest level of urgency at an unprecedented 8%. "Demand for legal advice on IT and data protection matters is greater than ever," confirms CMS Hasche Sigle partner Christian Runte. "The regulatory authorities in particular are now pursuing data protection violations much more aggressively. Alongside the risk of negative media coverage, companies increasingly face the threat of severe penalties if they breach data protection legislation. The new EU Data Protection Regulation will also require a response," added Runte.
Good business prospects and financing on a more international basis
The business expectations of CFOs have improved further compared with the spring findings, with significantly more than 40% now expecting that their business will perform "better" or "very much better" in the next six months. Only about 35% of panellists expected this six months ago. In addition, fewer than 20% now expect the situation to deteriorate. This more positive outlook is also reflected in sustained positive expectations for sales and earnings and in more ambitious investment plans. Priorities are also shifting. While the focus of work remains very much on Controlling, financing structure has moved up to second place, replacing operational reorganisation.
Despite the criticism often levelled at banks, the survey participants mostly seem to have access to conventional loan-based financing – only 20% plan to issue bonds in the next five years. A large proportion (40%) of this group can even imagine a private placement with US investors – a sign of the trend towards more international financing. "Although bonds are still under-represented, they are becoming more attractive and will certainly constitute a central pillar of corporate financing in the next five to seven years," said capital markets expert and CMS Hasche Sigle partner Oliver Dreher. The gap between financing methods continues to widen: "Some companies will be able to choose between a range of instruments and markets, while others will continue to depend on their main bank if the credit market deteriorates," said Dreher.
Workloads and stress on the increase
The downside of the positive outlook can be seen in rising workloads – more than 17% of panellists regard workloads as very high. In March, the equivalent figure was just under 11%. Finance chiefs also feel more stressed than six months ago. More than 9% now work more than 70 hours a week – by far the highest proportion of all previous CFO Panel surveys. The proportion of CFOs working 60 to 65 hours a week has more than doubled to over 14%.
The number who enjoy their work has fallen below 70% for the first time since the survey was launched in autumn 2011. In the first survey, significantly more than 80% indicated that they enjoyed their job. In contrast, the proportion of those who now do not particularly enjoy their work has risen to more than 21%, compared to a previous figure of 16%.
FINANCE CFO Panel Germany Survey 2013 (in German) >>
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