Finance Monthly. 51 Banking & Financial Services Corporate treasurers have barely had a moment to catch their breath. A pandemic, geopolitical conflict, rising interest rates, financial market volatility, bank collapses, and other major issues have caused a relentless amount of disruption. But what some treasury teams might not yet be adequately grasping is that it is not a temporary state: volatility is the new normal and corporate treasury teams must adapt with urgency or risk getting caught unprepared if the next adverse event impacts their organization’s financial health even more directly. In particular, corporate treasury teams must take steps to build their own safety net—not for “normal” fluctuations in operating conditions, but for a world where regular volatility is itself the norm. Doing so is key to ensuring alignment with the CFO and broader C-suite’s strategic goals in ever-changing conditions. Don’t let past stability mislead you into overconfidence in your financial strength and flexibility. Effective corporate treasury planning and execution are challenging even in the best of times, and it’s become an order of magnitude more difficult given now-ubiquitous choppiness in virtually every industry. Corporate treasurers and the office of the CFO can strengthen their organizational alignment and stability if they take proactive steps to adapt. Consider these three strategies for doing so.
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