Crisis management has become a critical skill for treasurers following COVID-19’s economic fallout. In ensuring resilience against the current and future shocks, treasurers should look to key best practices in times of crisis.
In TMI’s May 2020 cover story, Lisa Robins, Global Head of Transaction Banking and various industry peers shared their views and practical insights for treasurers in navigating beyond the COVID-19 pandemic.
And in thinking further afield, treasurers should also look to the opportunities. Digital adoption will be transformational for many treasurers as they adopt such best practices. “With governments, regulators and organisations recognising the valuable role of technology during this crisis, the drive to digital will accelerate across B2B and B2C models,” said Robins. Treasurers previously driving digitisation as a secondary activity are now expected to change. “Treasurers have the chance to help lead their organisations to fully embrace the digital era.”
To lay the foundations of a more resilient organisation, treasurers should follow a number of important steps. See the tips and infographic below for Lisa Robins’ best practice tips for crisis management.
Six key steps for treasurers: Why now is the time to act
- Cash flow management: This is even more critical as we move beyond COVID-19
- Determine cash availability: Enables informed decisions around liquidity and cash flow, debt, FX exposures and payment priorities
- Scenario testing: Ensures understanding of preparedness for shocks
- Engage with relationship banks: Opportune time to partner with banks to fast track digital adoption of tools that provide visibility, efficiency, fraud control etc.
- Digitise manual processes: Ensures enhanced controls are put in place where manual payments remain – to mitigate cyber and fraud risk
- Monetise inventory: Inventory may be temporarily surplus to requirements because of demand gluts or supply chain disruption