The recent reintroduction of U.S. tariffs on strategic imports has once again highlighted how quickly external shocks can reshape the global business environment. As global supply chains come under renewed pressure, and trading conditions become more unpredictable, companies face a fundamental reality: exogenous disruptions—whether political, economic, environmental, or technological—are no longer exceptions, but part of everyday business.
Companies need to proactively prepare to secure their position, but many leadership teams are still struggling to respond quickly and effectively to such shocks. While the pandemic may have forced organizations to confront extreme and immediate disruptions, the post-pandemic world has only increased in complexity. Trade restrictions, energy price volatility, geopolitical tensions, or regulatory shifts—companies now operate on the basis that the next major disruption is not a matter of if, but when.
In this environment, those who act decisively and with foresight can not only mitigate existential risks but potentially gain an edge—maintaining competitiveness or even emerging stronger.
Liquidity as a strategic truth in volatile times
In uncertain times, one thing remains undeniably true: liquidity is king. Sufficient available liquidity is not only essential for business continuity, but also a clear signal of resilience and financial stability. It reflects how effectively leadership and business functions collaborate to respond to external shocks and protect the organization from financial cracks.
In periods of heightened uncertainty, trust becomes a greater differentiator. Investors and lenders are far more likely to stand behind companies that demonstrate clarity on what needs to be done, when it needs to be done—and who takes ownership for it.
Always prepared: scenario-based readiness as a competitive advantage
In our interim management roles during complex situations—from global health crises to trade disruptions and supply chain upheavals—we have consistently observed that a proactive, scenario-driven approach significantly increases the ability to manage through uncertainty.
Based on this experience, we have distilled three essential success factors for proactive cash management:
1. Screening for exogenous shocks
Many companies are still surprised and unprepared when external shocks hit—but this does not have to be the case. While accurately forecasting major disruptions may be difficult, companies can identify relevant scenarios by continuously scanning their external environment.
The first step to proactive cash management is to identify the potential risks that could significantly impair a company's financial stability. This requires the integration of internal and external data into a robust risk framework—and an understanding of how such risks could impact liquidity drivers.
In one of our recent engagements with a global retailer, we used a range of external indicators to anticipate how emerging geopolitical tensions and trade restrictions could impact store operations across multiple regions. These insights formed the basis for actionable scenarios and early mitigation steps—well before disruptions became acute.
2. Identifying interdependencies and deriving actions
Once a relevant scenario is established, the next step is to assess its financial impact—particularly when and how it will affect liquidity. Proactive decision-making means using current knowledge to act immediately—even when the actual impact lies in the future. If a scenario suggests a decline in revenues, liquidity-preserving countermeasures must begin now.
These actions may include active inventory and order management (which affects liquidity with a time lag based on payment terms), reductions in investment or marketing spend, and human resources initiatives such as short-time work. In some cases, contributions from stakeholders such as suppliers, landlords, or lenders may be necessary. The result of this step is a structured action plan with clear, measurable effects on liquidity—in terms of timing and value.
3. Establishing a cash culture
True resilience requires collaboration and accountability. Finance plays a central role in building this resilience by establishing a cash-first mindset across the organization.
The Chief Financial Officer (CFO) ensures cross-functional coordination with risk, procurement, sales, and HR, while also initiating the data flows required for scenario planning. Treasury orchestrates the ongoing process—from external screening to scenario modelling to the implementation of actions. The finance function also drives ownership, assigns cross-functional responsibilities, and ensures that progress is continuously monitored, and tracked. Embedding this iterative, agile process enables companies to make a cash culture part of their DNA—not just during crises, but as a core aspect of operational excellence, driving efficient cash allocation.
Conclusion: agile finance as a prerequisite for resilience
The latest wave of tariffs and trade restrictions is a timely reminder of how volatile and externally driven today's business landscape has become. And yet, companies that rely on agility and foresight—rather than reaction and delay—have a real chance to take control.
Proactive cash management, built on a foundation of continuous screening, structured scenario planning, and cross-functional execution, enables companies to respond faster, gain time, and protect liquidity. This, in turn, provides the flexibility and confidence needed to deal with parallel disruptions and seize emerging opportunities.
In short: when the next shock hits—driven by trade wars, price volatilities or geopolitical tensions—agile organizations won't freeze. They'll move. They'll adapt. And they'll lead.
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