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Organizations ramping up focus on non-financial assets

Feb 02, 2012 Philip Burgess

In evaluating credit decisions, lenders and investors tend to consult raw data and financial information. However, in regards to most aspects of business strategy, a growing number of executives agree that more emphasis needs to be placed on non-financial assets and considerations. According to a survey released this week by the American Institute of CPAs and the Chartered Institute of Management Accountants, three-quarters of CEOs - 75 percent - admit more room is needed for consideration of non-financial resources, such as intellectual capital and customers relations, in driving long-term growth. "One of the key struggles faced by CEOs is building sustainably for the future in the face of a fixation on financial, short-term gains," said Charles Tilley, CEO of CIMA. "Management accountants, who have the depth and breadth to understand the business from multiple perspectives, can help businesses succeed in troubled times and create long-term sustainability." Eighty-five percent of respondents agree that customer relations contribute significantly to corporate growth and sustainability. This may have an important role in borrower relations and consumer credit risk management.