Treasury teams are adapting to ongoing market volatility by treating uncertainty as the norm.
This article appears in the July/August issue of Global Finance Magazine.
Treasury teams now navigate sustained market volatility by treating uncertainty as a core factor in everyday decision-making, rather than an exception. That’s among the central findings of the latest Herbert Smith Freehills Kramer Corporate Treasury Report, whose survey of finance and treasury professionals found 72% now treat volatility as “business as usual,” up from 41% in 2025.
Strikingly, this finding emerged even before the Middle East conflict threw global markets into turmoil. Follow-up interviews conducted since (between February and March 2026) reflect the impact of the early days of the crisis. Just 8% (down from 17% in 2025) reported a material negative impact from macroeconomic and geopolitical events, while 3% reported a material positive outlook (up slightly from 2% in 2025). As of May 2026, energy prices and U.S. tariff uncertainty—in particular the Supreme Court’s Learning Resources v. Trump ruling — were the chief concerns.
The survey, conducted with the Association of Corporate Treasurers, reveals that 45% of corporates are looking to diversify their debt while 55% are not—reflecting both tighter credit conditions and a search for flexibility. The report’s authors suggest the findings point to the economy being at or near a cyclical trough.
Survey respondents said they expected to increase expenditure in 2026 on debt repayment, returns to shareholders and share buybacks, and to reduce spending on acquisitions and capex — suggesting a consolidation, rather than expansion, mindset.
There was also a notable decline in respondents prioritizing cash management, to 71% in 2026 from 91% in 2025. The focus was instead on managing interest rate volatility, derivatives, supply chain and technology risks.
Stacey Pang, of counsel at HSF Kramer, told Global Finance that cash management is, and always will be, a central focus: “The data may simply show that some treasurers have successfully implemented cash management programs in the last year, and therefore have time to prioritize other projects.”
Looking ahead, Pang anticipates the “promise of AI” and its more meaningful deployment will be a key priority over the next 12 to 24 months — with the caveat that AI “cannot and should not replace the ultimate decision-making role of treasury professionals.”
Deborah Ritchie is a contributing writer based in London.
With $1.7 trillion tied up in inefficient supply chains, CFOs are making liquidity a core strategy.
Gustavo Muller, Monkey
There’s $1.7 trillion of working capital sitting on the balance sheets of the largest U.S. companies: not locked in failed investments or delayed acquisitions, but trapped in slow receivables, excess inventory, and payment structures designed for a different economic environment.
That money hasn’t disappeared. It remains tied up in processes that no longer reflect how companies manage risk, liquidity, or supply chains.
For many CFOs, the largest untapped source of liquidity is the cash already embedded in operations. Yet organizations often struggle to unlock it because treasury, procurement, operations, and suppliers continue to pursue different objectives using disconnected systems and metrics.
The culprits include receivables that take too long to convert to cash, inventory accumulated as protection against uncertainty, supplier payment structures that fail to balance liquidity across the value chain, and cash reserves that remain underutilized because companies lack the visibility to deploy them effectively.
For years, these inefficiencies were manageable. Low interest rates, predictable supply chains, and abundant liquidity reduced the urgency to rethink working capital. Treasury managed liquidity, procurement negotiated payment terms, sales focused on collections, and financial institutions provided financing within established relationships.
Today’s environment demands a different approach.
Higher interest rates, geopolitical uncertainty, higher tariffs, supply chain disruptions, and persistent margin pressure have elevated working capital from a finance function to a strategic business priority. Yet many organizations continue to manage liquidity using operating models designed for a different era.
According to Deloitte’s Q1 2026 CFO Signals survey, siloed organizations and outdated technology remain among the largest internal barriers to cost management. Boston Consulting Group has noted that extending payment terms alone often merely shifts financing costs along the supply chain rather than improving overall efficiency.
The challenge is therefore broader than financing. It is about coordination.
Working capital decisions increasingly require treasury, procurement, operations, finance, and suppliers to operate from the same information and align around shared objectives. Without that alignment, companies often optimize individual functions while reducing efficiency across the broader organization.
Reflecting these realities, investors have changed their expectations. Following several years of tighter capital markets, boards increasingly emphasize cash-flow resilience, capital discipline, and operational efficiency alongside growth. Liquidity has become a competitive advantage rather than simply a financial metric.
Rethinking Working Capital
Companies are responding in different ways. Many are investing in better forecasting and real-time cash visibility. Others are modernizing treasury infrastructure, digitizing receivables and payables, expanding supply chain finance programs, or adopting data-driven tools that improve coordination across functions. Financial institutions are evolving their offerings through broader funding networks, automation, and digital onboarding capabilities.
No single approach will solve the challenge for every organization. What appears increasingly clear, however, is that fragmented processes and limited transparency are becoming more expensive. As supply chains grow more complex and financing conditions remain uncertain, organizations require greater visibility into where liquidity resides, how quickly it can move, and how financing decisions affect every participant across the value chain.
The International Finance Corporation and the World Bank have consistently highlighted digital infrastructure as a key enabler for expanding access to supply chain finance, particularly among smaller suppliers that have historically remained outside traditional financing programs. The objective is not technology for its own sake, but the creation of more efficient, scalable financial ecosystems.
The U.S. has one of the world’s deepest capital markets. Yet many companies continue to face unnecessary constraints in moving liquidity through their supply chains.
The next phase of working capital management, then, will likely depend less on access to capital — which remains abundant — and more on the ability to connect information, participants, and decision-making across increasingly complex commercial networks.
Organizations that succeed will be those that treat working capital not as a quarterly reporting metric but as an enterprise-wide capability that strengthens resilience, improves capital allocation, and creates flexibility in periods of uncertainty.
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Gustavo Muller is CEO and co-founder of Monkey, a financial solutions marketplace. He has more than two decades of experience in financial markets, having held senior positions at Citibank, XP Investimentos, and as co-founder of Fisher Venture Builder.
