2017 Global CEO outlook

The 2017 Global CEO Outlook discusses how disruption has become a fact of life for CEOs and their businesses as they respond to heightened uncertainty. As they do so, most see disruption as an opportunity to transform their business model, develop new products and services, and re-shape their business so it is even more successful than it has been in the past.

KPMG’s 2017 Global CEO Outlook reveals insights from nearly 1,300 CEOs in 10 of the world’s largest economies. With continued pressure to deliver on the bottom line, CEOs are keenly focused on managing their business’ core strengths while transforming the way they create value.

2017 Global CEO outlook

Directors Quarterly: Insights from the Board Leadership Center

In the current environment, the question that corporate boards should be asking with respect to shareholder engagement is no longer if, but how. Engagement with the company’s significant shareholders is becoming the new normal, rather than the exception.

Given heightened investor expectations for transparency in governance and oversight, having a well-executed plan for communicating the company’s story and gauging investor sentiment on key issues is critical. It is also increasingly important that the entire board knows what that plan is and what role the directors may play.

Directors Quarterly – Insights from the Board Leadership Center, Global Thought Leadership

Navigating Through Uncertainty

How do banks respond to the increasing regulatory requirements around operational risk?

Costs and charges arising from banks’ non-financial risks have increased sharply in recent years. In part this reflects the compensation and litigation costs relating to misconduct, but it has also been driven by the costs of IT failures and cyber-attacks. Recent and prospective regulatory requirements and supervisory actions not only impose additional compliance costs but also require banks to take a more strategic view of how they identify, measure and control their non-financial risks.

To better understand how banks are responding to these developments and to provide banks with an opportunity to share and compare their views with peers across the market KPMG undertook a survey of 36 banks across Europe. The survey results highlighted the importance of banks’ non-financial risks. Nearly half of the respondents reported that such risks accounted for more than 10 percent of their banks’ total losses, and that operational risk represented more than 10 percent of risk weighted exposures.

Key findings

  • Non-financial risks are important
  • Banks are planning to develop their frameworks for non-financial risks
  • The assessment and measurement of non-financial risks is the main areas for improvement
  • Banks also identify the need to align more effectively the elements of managing non-financial risks, to enhance risk reporting and to strengthen risk culture
  • Many banks do not specify an effective risk appetite for non-financial risks
  • Risk ownership and challenge remain unclear
  • Many banks are addressing non-financial risks primarily through an emphasis on IT and compliance risks

Strategic and business risks remain out of focus in most banks’ frameworks for non-financial risk

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Is Everything Under Control?

To better understand the key challenges and concerns facing audit committees, boards, and their companies, KPMG’s Audit Committee Institute surveyed more than 800 audit committee members in 42 countries.

The survey findings offer insights that audit committees around the world can use to sharpen their focus, benchmark responsibilities and practices, and strengthen oversight.

While audit committees continue to express confidence in financial reporting and audit quality, the results highlight ongoing concerns about risk management, legal and regulatory compliance, cyber security risk, and managing the control environment in the company’s extended organization.

The report offers six key takeaways:

  • Risk management is a top concern for audit committees.
  • Internal audit can maximize its value to the organization by focusing on key areas of risk and the adequacy of the company’s risk management processes generally.
  • Tone at the top, culture, and short-termism are major challenges—and may need more attention.
  • CFO succession planning and bench strength in the finance organization continue to be weak spots.
  • Two key financial reporting issues may need a more prominent place on audit committee agendas: Implementation of new accounting standards and non-GAAP financial measures.

Audit committee effectiveness hinges on understanding the business.

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Guide to Directors’ Remuneration 2016

This publication is designed to be a wide ranging guide to you as a director or policy maker to assist in remuneration planning at your company. Where possible we have broken down the data obtained from the FTSE 350 into groupings by market capitalization and turn over, to increase the relevance to you.

Guide to Directors’ Remuneration 2016

KPMG’s guide to Directors’ Remuneration 2016, KPMG Insights

Transformative Change

Today’s leading hedge fund managers are evolving for the future. They are striving to become more innovative. They are investing into and integrating new technologies. And they are rethinking their operating models to drive improved performance.

To survive in today’s highly-competitive, fast-paced and innovative environment, hedge fund managers must remain ahead of the curve. This report provides a unique view into the competitive landscape, challenges and opportunities of innovation facing today’s hedge fund sector.

We hope the data contained in this report offers hedge fund managers a valuable view into the future of the sector and enables managers to benchmark their operating model against their competitors and peers. And that the advice and insights provide managers with practical ideas to help them evolve into the future.

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The Panama Papers

As widely reported by global news services, on May 9, 2016, the International Consortium of Investigative Journalists (ICIJ) released a database containing information pertaining to over 200,000 offshore companies based on more than 11.5 million documents that had been leaked to the ICIJ from the files of the Panamanian law firm Mossack Fonseca. The leaked documents – dubbed the Panama Papers – are reported to date back more than four decades and allegedly reflect the law firm’s involvement in assisting in the creation of secret shell companies and offshore accounts, often for prominent persons, including in connection with alleged illegal activities.

The Panama Papers will continue to present challenges for companies who have had direct or indirect dealings with the offshore companies and their owners identified in the Panama Papers. In particular, financial institutions have become well aware of the financial, reputational and regulatory risks connected with being associated with alleged or actual misconduct.

In order to better understand how these financial institutions have responded to the release of the Panama Papers to date, KPMG recently conducted a global survey of financial institutions.

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Building A Technology Advantage

The scale, ambition and complexity of today’s engineering and construction projects are nothing short of breathtaking. Buildings are getting taller, wells are getting deeper and bridges are getting wider. Operating at the forefront of some of the world’s greatest challenges, construction is becoming greener and more sustainable, improving social conditions and tackling human and natural disasters.

Technology plays an integral part in helping the industry to realize these goals by enabling enhanced design, planning and construction. Yet, despite huge investments in technology, the sector is struggling to reap the full benefits of advanced data and analytics, drones, automation and robotics.

For the first time, KPMG has jointly surveyed both project owners, and engineering and construction companies on a number of current issues to understand whether their views are aligned or whether there are marked differences. We continue to look at how to improve project management, but with the added perspective of a technology lens.

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