Financial Leaders Embrace Greater Risk Tolerance

UK CFOs Are Gotta-Run For Investment Races!

When Deloitte popped a quick poll of Chief Financial Officers across the UK, the big news was that Britain is suddenly the hottest spot for investors—right up there with India. About 13 % of the respondents ticked “very or somewhat attractive” when asked where they’d want to put their cash.

Survey Snapshot

Dates: 16‑29 June 2024
Quick take: This marks a sharp turnaround from the Q4 2024 survey where the UK was only sixth place, trailing behind the US, India, the Middle East, emerging European markets, and Japan.

CEO Thinks

Richard Houston, senior partner and CEO of Deloitte UK: “This shift shows the UK’s newfound status as a major global investment hotspot. The upswing in confidence and appetite for risk means investors see a world of potential here.”

Bottom Line

With CFOs now kind of cheering for London, the UK’s investment scene is getting a serious facelift—big money is moving, and the country’s future looks alway‑more inviting.

Business sentiment is more balanced

Business CFOs Feeling the Heat—But Not Too Much

Quick News Flash: CFOs are starting to see a pinch of optimism this quarter—it’s nudged up a few points to -11% from last quarter’s -14%.

What the Numbers Tell Us

Inflation is expected to take a deep breath, easing to around 2.9% by mid‑2025.
The Bank of England is slated to trim the base rate from the current 4.25% to 3.75% over the next 12 months.

Feelings on the Ground

Don’t let the numbers scare you—CFOs are feeling a bit more hopeful even if the outlook is still cautiously optimistic. It’s a quiet “fingers crossed” vibe that the economy will get a breather soon.

Risk appetite improves

CFOs Are Turning Up the Heat on Risk — And Letting Their Risk Appetite Grow

What the Numbers Are Saying

When the last quarter’s survey came back, 12% of CFOs felt it was safe to tighten the reins. This quarter, that number jumped to 17% – the same as if a CFO just discovered a new ice‑cream flavor they can’t resist.

Why the Shift Matters

For the first time in a year, CFOs are giving expansion strategies a more prominent spot on their radar. They’re itching to roll out new products or dive into fresh markets – a move that feels like the boldest play by a CEO in their new “new product” playbook.

Two Quick Facts to Keep in Mind

Expansion strategies get chest‑pounding attention from 19% of CFOs.
Defensive plays still dominate with a 41% vote as a strong priority.

Bottom Line

Even though CFOs are nudging toward growth, there’s still a strong undercurrent of caution. Think of it as a tug‑of‑war between “grow, grow, grow” and “hold, hold, hold.” Yet, with risk appetite climbing, the CFOs are stepping into the battleground a little bolder at least for a brief spell.

Geopolitics remains top risk to business

Geopolitical Risk Still Tops the Charts in Business, but It’s Showing Signs of Cooling

For eight straight quarters, companies worldwide have flagged geopolitical risk as the biggest external threat. It’s earned its second‑highest weighted rating since the survey began in 2018, though it slipped a few points this quarter—from 74 down to 71.

Key Takeaways

Fewer finance chiefs say their businesses face “high” or “very high” levels of uncertainty: 44% this quarter (down from 46% in the last period).
That figure is still just above the long‑term average of 40%.

Experts Weigh In

Ian Stewart, chief economist at Deloitte UK, comments: “Even with Middle‑East conflict and oil price volatility, concerns about geopolitical risk eased slightly in Q2. The early‑May UK‑US trade deal may be softening trade worries.”