Geopolitical Issues Top Risk for Accountants as Confidence Drops

Accountants are increasingly expressing concerns about their companies' ability to maintain profitability and lead in the face of constant change and disruption. For the first time, geopolitical issues have become the top global risk priority for accountants, according to the Q2 Global Economic Conditions Survey released by the Association of Chartered Certified Accountants and the Institute of Management Accountants. This survey indicates a new phase of anxiety among accounting professionals, not only about external shocks such as trade and policy but also about internal resilience and adaptability.

Compared to the previous quarter, accountants across various sectors and regions in Q2 expressed growing concerns over internal vulnerabilities, including governance gaps, cost fragility, workforce strain, and cultural and digital readiness. The survey, conducted from June 3 to June 25 with 420 respondents—all members of ACCA or IMA and accounting and finance professionals, including CFOs—highlights these shifting concerns.

Confidence in North America rose slightly in Q2 compared to Q1, reflecting some improvement in sentiment among U.S.-based accountants. However, it remains historically low. In contrast, confidence fell sharply in the Asia Pacific region, erasing gains made in Q1. The deterioration in the global trade backdrop, amid major changes in U.S. trade policy, was likely a key factor weighing on sentiment.

Looking specifically at CFOs, confidence among finance chiefs declined in Q2 and remains well below its historical average. The proportion of North American respondents reporting increased operating costs eased slightly, according to Alain Mulder, senior director of Europe operations and global special projects at IMA. However, it remains historically high after the substantial increase seen in Q1. This raises the risk that firms may attempt to raise prices over the coming months.