How to weather the perfect storm?

A resilient Treasury keeps the boat steady

COVID-19 and the resulting financial crisis has created a perfect storm for most companies, and the Treasurer has a key role to play in keeping the ship afloat. No aspect of Treasury has been left unscathed: funding and access to cash is needed quickly, and exceptional market volatility has cast a spotlight on hedging issues. The most challenging aspect, perhaps more so now than during any previous financial crises, is that it is difficult to estimate when this storm will be over.

Whilst promising vaccine trials start emerging like a silver lining, new waves of infections in key economies, and the lasting effects of the disastrous response to the outbreak from the USA as the world’s largest economy still create concerns.

Despite the negative social and economic impact, however, the pandemic has forced a much faster pace of transformation and agility. Treasurers have had to respond very quickly to stabilise liquidity and mitigate the impacts of market volatility. As management pivots its mind-set from the present to the future, Treasurers must now focus on taking the right actions to ensure a speedy recovery once the crisis starts to fade. As harsh as the old adage “never waste a good crisis” may sound, it would certainly be a pity if we resume business-as- usual activities without leveraging the tough lessons learnt during these difficult months.

How to weather the perfect storm?
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