Russia-Ukraine war disrupts supply chains, raises cyber threats

Voice of the CFO | March 2022


KPMG hosted a cross-industry group of chief financial officers (CFOs) to discuss the impacts of the Russia-Ukraine war, cyber threats, and continuing concerns about inflation in the U.S. economy. Carl Carande, U.S. vice chair and global head of Advisory, led the discussion. Ken Kim, senior economist, and Kyle Kappel, principal, Cyber Security Services, provided subject-matter insights.

CFOs are closely watching the Russia-Ukraine war and its effects on their businesses. They expressed concern for the safety of local employees in Ukraine as their top priority and are looking for ways to help evacuate refugees and deliver humanitarian aid. As for the economic impacts of the war, CFOs cited supply chain disruptions and rising prices for energy and raw materials. Because of the hostilities, some companies have closed their operations in Russia or else divested them entirely. And CFOs are weighing how all these disruptions will affect their first-quarter statements. CFOs also addressed taking steps to heighten their guard against cyberattacks. And inflation in the U.S. remains high, but indicators suggest a recession might be avoided.

Key takeaways

  • CFOs are working to ensure the safety of their employees in Russia and Ukraine and are helping to supply humanitarian aid and assist the evacuation of refugees from the war. 
  • The war is disrupting supply chains and raising prices of commodities, energy, and manufacturing raw materials. 
  • Companies have shuttered their operations in Russia or divested them entirely. 
  • Exposure to the region will mostly likely have negative effects to first-quarter results. 
  • Companies have been urged to heighten their guard against cyberattacks from the Russian government or its agents. 
  • CFOs indicated that in addition to maintaining their own cyber defenses, companies must verify that their third-party vendors and partners also have implemented cybersecurity measures. 
  • For the U.S. economy, inflation remains high, but the current yield curve suggests that a recession can likely be avoided. 
  • Pressure to raise worker wages will likely lessen as more people return to the workforce.


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Carl Carande

Carl Carande

U.S. Vice Chair and KPMG Global Head of Advisory, KPMG LLP

+1 212-909-5650

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