According to Kemi Bolarin, Head of Treasury – Europe at GXO, the biggest challenge for treasurers today is that uncertainty is no longer an occasional disruption – “it’s become the norm, part of the operating environment.”
Issues ranging from geopolitical tensions to cyber risk and regulatory complexity may all have a significant impact on liquidity, cash flow and risk – but as Bolarin explains, the real challenge is that all of these things are interconnected. “A political decision in one market can quickly influence supply chains, foreign exchange exposures, customer behaviour and working capital requirements elsewhere.”
With conditions changing so rapidly, treasury teams need to remain agile while still providing the business with confidence and stability, says Bolarin. At the same time, businesses continue to pursue growth opportunities, enter new markets and transform their operating models.
“That places treasury in an interesting position,” she reflects. “We’re expected to support expansion, optimise working capital, manage risk and protect liquidity, often simultaneously.
“For me, that’s the biggest shift in the profession. Treasury is no longer simply about managing cash and banking relationships. Increasingly, we’re helping organisations navigate complexity, assess trade-offs and make informed decisions in an environment where there are often few certainties.”
Genuine partnership
In this environment, Bolarin says the relationship between corporates and banks has become more strategic than transactional. While she acknowledges that access to liquidity, execution quality and competitive pricing are all important, “what I value most today is insight, connectivity and genuine partnership.”
Given the rapidly evolving environment, Bolarin says the most valuable conversations are often about what might be coming next, rather than what has already happened.
“I also look for innovation that solves real business problems,” she adds. “Whether that’s cash forecasting, working capital optimisation, payments, liquidity structures or technology solutions, the best innovations are those that make treasury simpler, more efficient and more resilient.”
Another important ingredient is the need for transparency and open dialogue, she explains. “During periods of uncertainty, treasury is often making decisions that have implications across the wider organisation. Having partners who understand your business, challenge your thinking constructively and work collaboratively towards solutions is incredibly valuable.”
Best of both worlds
As treasury becomes more forward-looking and predictive, Bolarin says technology has an important part to play in accelerating this evolution. “I see technology as a significant enabler, but it needs to be implemented thoughtfully,” she says. “The objective should be better decisions and stronger controls, not simply more technology.”
For GXO, like many companies, forecasting cash effectively is an ongoing challenge – not least because customer payment behaviour continues to evolve. At the same time, economic conditions can rapidly change the assumptions underpinning a forecast.
“AI and advanced analytics have the potential to improve forecasting, identify emerging risks and support better decision-making,” says Bolarin. “However, I don’t believe technology replaces experience, judgement or relationships. The best treasury teams will combine the strengths of both.”
Ultimately, says Bolarin, best practice is about balancing resilience with agility, and being prepared for disruption while continuing to support growth. “Those organisations that can achieve both will be best positioned to succeed in what remains a very dynamic environment.”
Taking a step back, Bolarin observes that treasury sits at the intersection of liquidity, risk, technology and strategy. “The role today has moved on from simply protecting cash, but to helping the business make confident decisions in an increasingly uncertain world,” she concludes.
