The growing complexity of environments companies operate in – from a regulatory, financial, political and social viewpoint – is changing the perception and way these companies identify, assess and manage both internal and external risks faced. FTI Consulting has identified 14 critical events whose potential impact is considerable on companies’ financial valuation as well as their reputation and market position.
The results of a study conducted by FTI Consulting amongst over 500 of the top executives of the largest companies with a presence in Spain revealed that four out of every five companies have been affected by one of these critical events over the past twelve months, with the arrival of new competitors and political/ regulatory risks the factors presenting the greatest short-term concern. These critical events affected the turnover of one-third of the companies surveyed by over 5%.
The study additionally revealed that the business climate has deteriorated in Spain over the past year and will continue to do so over the short term, requiring greater State involvement in terms of the creation of favourable business conditions so companies can prosper. The study likewise points to diverse areas of improvement within companies, such as how the relationship with certain interest groups such as employees, the public at large and political parties and the government are managed, as well as strengthening procedures against fraudulent practice such as bribery and corruption.