This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Research Study Finds Nonfinancial Risks Directly Impact Technology Companies’ Performance

A new study by CFO Research, sponsored by Travelers (NYSE: TRV), finds that the financial performance of a technology company is inextricably linked to how well it manages the entire range of risks to its business execution. Analysis of survey results reveals “red zone” risks, critical nonfinancial risks where respondents say their companies must take action to become adequately prepared. The full report on this study, titled The Finance View of Nonfinancial Risk for Technology Companies, is available for download at and

Nonfinancial risks are broadly defined as events or actions, other than financial transactions, that can negatively impact the operations or assets of a company. Using this definition, 62 percent of survey respondents agree that nonfinancial risk has become more of a concern in recent years. According to survey results, the top six critical nonfinancial risks faced by technology companies include:

  1. Business decline due to economic conditions
  2. Ability to hire and retain quality employees
  3. Performance failure of vendors and suppliers
  4. Breach of company’s electronic or online data
  5. Failure to meet targets for business/customer growth
  6. U.S. regulatory compliance

Four of these are “red zone” risks – those that finance executives say are critical, but for which they believe their companies are less prepared. These nonfinancial risks include economic conditions, hiring and retaining employees, supplier performance, and failure to meet growth targets. “Clearly, any of these directly impact a company’s success,” said David Owens, Director of Research for CFO Research. “They are top of mind for many finance executives at technology companies.”

To illustrate this point, many technology companies are increasingly relying on an extended and exposed supply chain. With 74 percent of respondents agreeing that their companies must now “get to market with upgrades or new products faster than ever,” ensuring the smooth functioning of the supply chain becomes even more important.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs