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25/01/2005
UK CEOs 'optimistic' but fear over-regulation, finds PwC
UK CEOs have the most optimistic outlook on the business climate of any region in the world, according to the eighth annual PricewaterhouseCoopers (PwC) Global CEO Survey.
However, the survey also identified over-regulation as the most significant threat to business growth. They also worry about loss of key talent and market volatility and, increasingly, maintaining their company’s reputation.
This concern over reputational risk and over-regulation may explain why, in comparison to their global peers, UK CEOs hold the most negative views on the value that their governance, risk management and compliance (GRC) activities contribute to their business – the focus of this year’s survey.
Globally, 60% of CEOs consider their GRC expenditure to be an investment, but UK CEOs take an opposite view, with 70% regarding it simply as a cost. Less than half of UK CEOs agree to any extent that effective GRC can drive value or be a source of competitive advantage – in comparison to almost 80% of global CEOs.
Kieran Poynter, Chairman, PricewaterhouseCoopers said: “The survey highlights just how dissatisfied UK CEOs are with box-ticking. Many are unable to see the connection between their GRC activities and their ability to take risks and create value. If the focus was not whether their GRC efforts are measurably adding value, but rather the potential haemorrhaging of value they could witness if their GRC fails, then GRC expenditure might be seen in a more positive light – as an investment in the future of the business, rather than a burdensome cost.
“Many UK companies have invested heavily in strengthening these processes as part of the effort to build public trust. Now CEOs need to make those processes work in their favour and not let anxiety over GRC prevent them from focusing on strategy and innovation. It is clear from the global results that in those companies where GRC is considered an investment, an effective GRC model is beginning to emerge, and those CEOs are seeing and valuing the benefits of that best practice behaviour.”
UK CEOs rate legal liabilities (88%) and reputation and brand (78%) as the areas most impacted by GRC activities. Of all their stakeholders, they believe that GRC activities have the greatest impact on ratings agencies and society at large.
The Global CEO of PricewaterhouseCoopers Sam DiPiazza released the survey, which draws on interviews with over 1,300 CEOs worldwide, at the World Economic Forum at Davos, today.
(SP/MB)
However, the survey also identified over-regulation as the most significant threat to business growth. They also worry about loss of key talent and market volatility and, increasingly, maintaining their company’s reputation.
This concern over reputational risk and over-regulation may explain why, in comparison to their global peers, UK CEOs hold the most negative views on the value that their governance, risk management and compliance (GRC) activities contribute to their business – the focus of this year’s survey.
Globally, 60% of CEOs consider their GRC expenditure to be an investment, but UK CEOs take an opposite view, with 70% regarding it simply as a cost. Less than half of UK CEOs agree to any extent that effective GRC can drive value or be a source of competitive advantage – in comparison to almost 80% of global CEOs.
Kieran Poynter, Chairman, PricewaterhouseCoopers said: “The survey highlights just how dissatisfied UK CEOs are with box-ticking. Many are unable to see the connection between their GRC activities and their ability to take risks and create value. If the focus was not whether their GRC efforts are measurably adding value, but rather the potential haemorrhaging of value they could witness if their GRC fails, then GRC expenditure might be seen in a more positive light – as an investment in the future of the business, rather than a burdensome cost.
“Many UK companies have invested heavily in strengthening these processes as part of the effort to build public trust. Now CEOs need to make those processes work in their favour and not let anxiety over GRC prevent them from focusing on strategy and innovation. It is clear from the global results that in those companies where GRC is considered an investment, an effective GRC model is beginning to emerge, and those CEOs are seeing and valuing the benefits of that best practice behaviour.”
UK CEOs rate legal liabilities (88%) and reputation and brand (78%) as the areas most impacted by GRC activities. Of all their stakeholders, they believe that GRC activities have the greatest impact on ratings agencies and society at large.
The Global CEO of PricewaterhouseCoopers Sam DiPiazza released the survey, which draws on interviews with over 1,300 CEOs worldwide, at the World Economic Forum at Davos, today.
(SP/MB)
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