“This leads to the need to identify and manage risks as a key element of the business as it is the trigger for efficient strategies. Those companies that, proactively, have a program of this type would be better prepared to avoid the effects of high-impact events”, says KPMG in its study ‘Risks in Mexico 2022. Anticipating growth routes’.
Some of these concerns are already starting to materialize in company profits. For example, Álvaro Fernández, general director of the Alfa conglomerate, pointed out in the company’s financial report for the second quarter that “the flow of Sigma Europe increased 20% compared to the previous quarter, thanks to the measures of operational efficiency and prices, to mitigate inflationary pressures. On the other hand, the delay of projects due to the global shortage of semiconductors, lower sales to the government sector and lower income from a wholesale client continued to affect Axtel’s results”, he mentioned in the financial report.
Armando Torrado, general director of Alsea, commented in his results that despite good sales during the quarter, these results occurred in the midst of challenges in the supply chain, inflationary pressures and changes in consumption habits.
“We continue to build on our positive momentum despite the inflationary environment that is affecting industries around the world. The resilience of our business, coupled with our revenue optimization capabilities, enabled us to achieve strong sales growth in all of our territories,” said John Santa Maria, CEO of Coca-Cola FEMSA.
Although the concerns expressed by executives in the financial reports for the second quarter are more latent, the KPMG study in which more than 100 executives in Mexico were surveyed, indicates that among the risks that they consider to be more likely to materialize are cyber attacks, the shortage of key supplies and insecurity and lack of rule of law.
Considering that 90% of the companies surveyed by KPMG consider that the threats to their strategy will continue or increase in the next three years, companies must prepare to ensure their continuity.
“It is critical to take into account the possible scenarios, the technological tools and the incorporation of a risk culture led by the highest corporate governance body and promoted by the management team, which allows it to increase its ability to anticipate and react to different environments”, concludes the KPMG study.