Risk averse CEOs shunning growth says PwC

RISK-averse executives are holding back from investing in medium and long-term strategic growth plans because of fears of what they might stand to lose if it doesn’t work out, according to PwC.

This cautious approach could mean businesses are missing out on opportunities to drive growth, the accountancy firm’s recent chief executive survey found.

The survey revealed that around a third of UK chief executives are ‘very confident’ about achieving revenue growth in the next three years.

Despite this, there is relatively little real evidence that M&A activity and other, larger strategic investments are happening.

Bill Henry, partner and northern leader for risk assurance, said: “There is still a high degree of caution in the marketplace, despite plenty of positive examples in the Midlands that strategic investments can and are yielding strong returns for some.

“Other companies that have invested in setting up business operations in the BRIC economies or striking up joint ventures are also finding that their decisions have proved good ones.

“While the continuing economic uncertainty is partly to blame for the high level of cautiousness, there are also some signs that the austere climate is affecting executives’ confidence on a personal level too.  

“They are worried that any decision to go ahead with a large strategic investment now could have a career-limiting impact if it didn’t work out for the best.”