PricewaterhouseCoopers' Management Barometer is a survey of top executives of large, U.S.-based multinational businesses. Interviewing of 104 CFOs and managing directors was completed in July 2006.
NEW YORK, Dec. 19, 2006 (PRIME NEWSWIRE) -- Nearly half (49 percent) of U.S.-based multinationals surveyed for the PricewaterhouseCoopers Management Barometer survey have been struck by a major "showstopper" or high-level crisis over the past three years -- that is, a significant event with catastrophic impact to one or more of their major business units or enterprise processes. Still, the majority claim recovery was swift with minimal financial consequences. Only half as many expect a crisis three years out, and concern is low. But those impacted by a recent crisis view their company as less well-prepared for the future.
Almost three-quarters of those experiencing a high-level crisis (71 percent) claim it had only a limited impact on their company's bottom-line profitability. Only 20 percent report a moderate impact, and 6 percent, a major one.
Coping with crisis
Overall, 71 percent were pleased with their company's resilience and performance in dealing with the crisis, including 26 percent describing the response as "outstanding" and 45 percent as "good/gets high marks." Only one-in-four (26 percent) gave their company's performance a mixed rating -- "some good, some not."
"Today's business complexity increases the likelihood of an adverse risk event triggering failure. Moreover, because large multinational operations are interconnected and can be concentrated in terms of geography or supply chain, the potential impact of a failure is multiplied, as compared to the situations businesses dealt with only ten years ago," said Miles Everson, partner, PricewaterhouseCoopers' Advisory practice.
"Significantly, over the past three years, half of the surveyed companies experienced a major catastrophe. It is good news that nearly three in four of the respondents praised their company's response under fire and claimed only limited impact on bottom-line profitability. These recent crises have made management much more attuned to increased uncertainty in today's environment."
For a copy of the entire news release and charts on this topic, please visit our Web site: www.barometersurveys.com