Removing FX Gains & Losses: Balance Sheet Hedging Redefined
02-07-2025 | Learn how you can avoid unexpected gains and losses when accounting for the impact of FX while achieving a clean, zero-line on their P/L.
02-07-2025 | Learn how you can avoid unexpected gains and losses when accounting for the impact of FX while achieving a clean, zero-line on their P/L.
19-06-2025 | A leader in sustainable tourism, Evaneos wanted to automate currency management to protect both their margins and those of their partners from FX risk.
17-06-2025 | AI-powered insights vs. security and trust: must a CFO choose?
12-06-2025 | Nana Antwi (Investment Specialist, Aviva Investors) provides an overview of money-market funds (MMFs) and their importance in cash management for corporate treasurers and many other investor types.
These changes directly affect corporate financial planning, putting Chief Financial Officers (CFOs) in the spotlight to ensure business strategy and risk management plans are robust and flexible to adapt in this tenuous landscape.
Although there are various obstacles CFOs will need to overcome, financial leaders must believe that they can successfully adapt to the current environment while also staying ahead of competition.
In the US, the dollar has shown signs of weakness against a backdrop of currency volatility, potentially a signal of a looming recession ahead. On their own, these currency fluctuations create difficulty in cash forecasting and budgeting and require finance leaders to provide more frequent updates, scenario planning and risk mitigation to their CEOs and boards.
In such a supercharged and risky economic environment, the CFO’s tactical and strategic decision-making role becomes indispensable to ensure businesses respond effectively to immediate challenges while positioning themselves for long-term success. Economic shifts create a whirlwind of uncertainty, but they also present opportunities for growth if tackled strategically.
Here are five CFO leadership strategies to mitigate risks and thrive in this challenging environment.
1. Financial Agility
Building financial agility gives organisations the strength to respond to rapidly changing conditions. Being agile means CFOs ensure budgets are adaptive and allow for re-allocations as new opportunities or threats emerge.
Modelling what-if liquidity scenarios gives leaders insight to pull cash levers as needed to ensure targets and expectations are met. Variables to model include tariff levels, supply chain updates and customer purchase behaviour alongside currency and interest rate possibilities.
2. Risk Management Protocols
While risk management has a multitude of meanings, in times of uncertainty these core elements of a risk management program stand out in their importance:
3. Stakeholder Communications
For CFOs, communication is as crucial as numbers. Internal and external stakeholders require clarity on how companies are adapting to the challenges of a volatile era. Transparency reassures investors, employees, and customers that CFOs have a plan and are proactively acting on it. Keep communications clear, consistent, and solution focused.
Key communication tenets include:
4. Leverage Technology
Data is the most powerful commodity a CFO has and using technology to empower CFOs to optimise decision-making in volatile environments with real-time data and analytics enhances the ability to anticipate and respond to market changes. Whether it is trade execution, controlling the cash lifecycle, or spearheading supply chain changes, the automation enabled by AI-driven treasury, liquidity and payments technology to elevate the power of the ERP platform is a critical path to efficiency and agility.
Office of the CFO software, including treasury and liquidity performance, must be open to APIs and embedded with trusted AI tools to ensure that CFOs can deliver more accurate and reliable insights at machine speed.
Executing a clear, resilient plan is the minimum expectation of today’s CFO. By prioritising financial agility, strengthening risk management frameworks, and leveraging reliable data insights, CFOs can step beyond daily uncertainty to not only preserve long term value but unlock opportunities to increase business value. While the news cycle will always be noisy, CFOs can deliver clarity amongst the chaos and set themselves apart as financial leaders.
20-05-2025 | Sanctions. You know they exist, but if you’re like a lot of businesses, you probably think they’re someone else’s problem.
15-05-2025 | Join François de Witte on June 12th in Luxembourg for an expert-led training on cash flow, credit collections, banking relations, and financial risk management – all for just €260.
12-05-2025 | The session highlighted the critical role of treasury professionals in navigating uncertainty and reinforcing their value to the organization
07-05-2025 | The cross-border payments sector is undergoing big changes in 2025. Wout, François from treasuryXL and Embat (Antonio ) explore how new technologies, regulations, and platforms are transforming cross-border payments
06-05-2025 | Money20/20 Europe is back to electrify your industry knowledge and turbocharge your networking game!