Finance - Research & Studies

CEOs’ views on Czech business challenges in a fragile economic environment

Freshly updated guide to Doing Business in the Czech Republic

In its current insight into lost and stolen information in 2009, KPMG looks at the ways data can leak, using the latest research into worldwide reports of data loss incidents.

Next to price, quality of the products and services offered is what clients are increasingly concerned with. To collect and analyse information about the infolines and representatives of selected insurance companies operating in the Czech market, KPMG used the Mystery calling method.

Presenting an economic picture of Central and Eastern Europe as the region grapples with the effect of the global crisis. The economies of the region share many similarities, and most of all, they are facing similar challenges, and are strongly interdependent. Often, today’s risks are tomorrow’s opportunities. If we take proper advantage of these opportunities, the region will soon return to a path of strong economic growth.

Ninety-six percent of organizations believe they have an opportunity to improve their risk management functions. Furthermore, nearly half say committing additional resources to risk management could create a competitive advantage, according to Ernst & Young’s Future of Risk survey, which examined organizations’ attitudes toward risk management.

Central European Private Equity confidence survey

Can restructuring help companies to regain consumer confidence? How does the amendment to the VAT Act affect the private use of company cars? And why does it pay to invest in photovoltaics today? Find the answers to these and many more questions in the new issue of Horizons.

The results of a recent survey of 315 industry executives from 49 countries conducted in March and April 2009 by KPMG International and the Economist Intelligence Unit show that more than half of its respondents expect an improvement in organic growth (55 percent) and expect an improvement in growth by acquisition or take-over (53 percent) during the next 12 months. Respondents are also positive about their business prospects as they relate to premium volume (say 53 percent), expense ratio (say 53 percent) and capital reserves (say 47 percent). They are least positive about their share price, with only 40 percent of respondents expecting to see an improvement in this area.

Former FDI hotspots such as the Czech Republic, Slovakia and Turkey were also bruised. The Czech Republic still ranked in the top 20.

Companies in Japan, Singapore and India advanced in post-recession planning, while Europe is unsure on way forward.

2008 was an “annus horribilis” for the banking industry but despite all expectations letting activity to banks increased by 25% year on year in 2008, albeit bolstered by a few large deals. However, a sharp slowdown was evident in the first quarter of 2009, with activity 80% below the quarterly average.

KPMG International: An investigation into how the tax treatment of savings has impacted the development of the global savings market.

With the European auto industry in turmoil following precipitous falls in vehicle sales in the 2nd half of 2008 and no immediate prospect of a return to normal selling rates, governments in the region are being pressured to act to provide relief to the industry’s value chain. In the words of Carlos Ghosn, Renault’s CEO, “The industry faces a crisis that is brutal, global and exceptionally large. We can even talk of the Great Depression of 1929.”

PERSONAL INCOME TAX | CORPORATE INCOME TAX

We would like to share with you the findings of our Quick Market Survey we have conducted across Poland, Hungary, Romania and Czech Republic. The survey was carried out over the last three weeks. We had responses from over 500 Top HR leaders from every major industry in the region. This was a greater reaction than we expected, clearly indicating the sense of openness and sharing that leaders feel in these challenging times.

Large multinationals are leading the way, while many other companies still have a long way to go. Tax executives around the world find effective tax risk management more important than ever, according to Ernst & Young’s global tax risk survey, Steady course; unchartered waters. The survey shows that the proportion of executives spending more than 20% of their time on tax risk issues has increased from 16% in 2006 to 26% in 2008.

During uncertain and volatile times it is important to make tough decisions early. Here are our top 10 points to help you focus on key value drivers and risks across your business. The future holds success for those who best position themselves to take advantage of the eventual upturn.

The current financial crisis will further strengthen public administration’s role in national economies. Unlike in the past, individual central governments around the world will expand and broaden the coordination of their activities globally and, at the same time, they will see a renewed tendency toward devolution of central power to regional and local governments or even private businesses. As indicated by a report published by the Consulting department of Deloitte, the field to benefit most from the expanded involvement of the public sector during the crises will be infrastructure.

The current financial crisis, although originating in the US, is a phenomenon that is now exerting an effect throughout the world. We anticipate that the impact, although currently centered in the banking industry, will over the coming months, migrate into the general corporate environment such that many companies large and small will be affected.