What If Trump Controlled the Fed? A Treasurers’ Nightmare (or Opportunity?)
From Treasury Masterminds Donald Trump has never been shy about saying the quiet part out loud. And one of his long-standing frustrations is the Federal Reserve. He wants more influence; he wants “his” Fed. But what if that actually happened? What if Trump, or any political leader, had full influence over the Fed? For treasurers, this is more than a political curiosity. It could mean a world where monetary policy shifts not on fundamentals, but on tweets, moods, or election cycles. Let’s fantasise for a moment what that world would look like. 1. Interest Rates on a Yo-Yo In a Trump-controlled Fed, interest rate decisions might become politically motivated: For treasurers, this means your hedging strategy becomes a guessing game. Forget stable forward guidance – instead, you’d live in a world of uncertainty, where risk managers become amateur political analysts. UPCOMING PODCAST Join us for “From Treasurer to TMS Trailblazer” with Quique Fernandez of Embat and discover how treasury leaders can shape the future of tech. Click below to register now and attend! 2. The Dollar as a Weapon Trump already loves to talk about “currency manipulation.” With full Fed influence, we could see direct interventions in FX markets to push the dollar up or down, depending on what fits the political script. For multinational treasurers: 3. Inflation Targeting? What Inflation Targeting? Central banks like to remind us that their mandate is “price stability.” But under political control, inflation could become a secondary concern. Imagine rates kept too low for too long, stoking inflation, simply because “growth looks good on TV.” For treasurers, this means: 4. The End of Central Bank Independence For decades, central bank independence has been a stabilising anchor. Lose that, and you lose credibility in the markets. If the Fed is seen as a political toy, we might see: That flows straight into corporate financing costs. Your next bond issue? It might come with a “Trump risk premium.” 5. Opportunity Amid the Chaos? It’s not all doom and gloom. Treasurers thrive in volatility (at least the good ones do). A Trump-influenced Fed could: The winners would be the treasurers who stop waiting for “certainty” and instead build resilience into their structures. Our 2 Cents Trump having full control of the Fed may sound like a fantasy—or a nightmare—but it raises a serious point:Treasurers cannot take central bank independence for granted anymore. Whether it’s Trump, another populist, or just political pressure creeping into monetary policy, we may be entering a new era where policy is less predictable, more volatile, and more political. And that means treasury teams need to adapt. Build flexibility, invest in systems, and prepare for the day when rate decisions are made in the Oval Office, not the Fed boardroom. Because if that day comes, you’ll want to be ready. Also Read Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
Franklin
Bitcoin Treasury Management: A Guide for Finance Teams
This article is written by Fortris Treasury teams across the world are facing the same challenge: how to manage digital assets such as Bitcoin alongside traditional government-issued currencies and other financial instruments. The challenge becomes more complex when Bitcoin is used in day-to-day business operations as well as an investment asset. However, with a good understanding of the foundations of Bitcoin treasury management, the perceived barriers to adding Bitcoin to the balance sheet can seem much less daunting. This article will unpack exactly what is involved for finance teams in the day-to-day management of Bitcoin, from the underlying technology to risk management considerations and best practice. What is Bitcoin treasury management? In a traditional finance (TradFi) environment, treasury management is a multi-faceted discipline that can mean different things to different companies. Fundamentally, a corporate treasurer is responsible for maintaining the cash reserves required for the smooth running of the business. They may also be tasked with managing funding and investment activities, and – depending on the size of the organization – carrying out day-to-day finance operations. Treasury management as an umbrella term can involve multiple roles beyond that of the treasurer, from the CFO to management accountants, internal audit teams and compliance. Bitcoin treasury management involves all these core functions, but with the added dimension of being underpinned by blockchain technology. There are also different accounting and tax requirements for Bitcoin and other digital assets. Differences between fiat treasury management and Bitcoin Bitcoin is a blockchain-based digital asset and as such, it has characteristics that make it distinct from fiat (government-issued currencies such as USD), and other financial instruments such as stocks and bonds. A blockchain is a completely decentralized network that is secured by cryptographic functions. Bitcoin transactions are created, executed, and confirmed by a network of computers called nodes, and all transactions are recorded in the publicly available ledger of the Bitcoin blockchain. Bitcoin transactions are validated by a network of computers, instead of a central authority like a bank. As a result, Bitcoin is a digital currency that cannot be controlled or manipulated by any central authority. This has both benefits and risks, as we shall see. Benefits of Bitcoin in treasury management 1. Transparency. Although it may seem paradoxical, blockchain-based systems like Bitcoin are designed to protect the privacy of individual users while at the same creating a public record of every single “on-chain” transaction. This built-in transparency makes it easier for audit and compliance teams to do their jobs. 2. Less counterparty risk. Removing the reliance on third parties such as banks minimizes exposure to counterparty risk. The dramatic collapse of Silicon Valley Bank in early 2023 was a stark reminder that businesses cannot be complacent about the risk of so-called black swan events. Even if deposits are eventually restored thanks to insurance or government intervention, companies can face a liquidity crisis in the short to medium-term. 3. A truly borderless network. Treasury teams within large multinationals face a multitude of challenges when it comes to cross-border payments. Settlement can be delayed by factors such as FX market cut-off times, currency controls at national level and hefty fees via the correspondent banking network. Bitcoin operates without borders or cut-off times, making universal T+0 settlements a reality. Challenges around Bitcoin for treasury teams Some of the challenges for treasury teams when it comes to operating with Bitcoin are the same as dealing with fiat currency. We will cover issues such as cybersecurity and liquidity management in more detail below. On top of this, there is a new set of metrics when it comes to reporting and analysis. These include: It is important to understand the extra metadata that a Bitcoin transaction generates and make provisions to record this accurately and consistently. How to manage a Bitcoin treasury To take full advantage of the inherent transparency of the Bitcoin network, and to ensure that there is no single point of failure when it comes to controlling funds, an organization needs to have a robust governance structure when it comes to executing and approving payments and generating reports. User roles and governance Ideally, the governance structure of a Bitcoin treasury system should map to the same access control measures that exist for the fiat part of the business (assuming that the business is not crypto-native). This allows for measures such as: Cash flow analysis Having a clear overview of the inflow and outflow of funds is essential for cashflow forecasting in fiat treasury management. This is also the case in Bitcoin. Accurate cash flow analysis relies on data being up-to-date and without the lags caused by manually updating spreadsheets. This is even more the case with Bitcoin, when tracking the cost basis of a discrete unit of Bitcoin (technically referred to as a UTXO) allows a treasurer to decide when to hold it and when to execute a realized gain or loss. There are two key functions that any Bitcoin treasury management approach must have to allow this to happen: The need for these tools will be determined by the volumes of payments coming into and out of the business. If this is likely to change over time, such tools will allow the business to scale its processes accordingly. Bulk payments This is a consideration for businesses looking to make repeat payments of the same amount each month. The most typical example here is Bitcoin payroll, for companies that wish to pay regular employees all or some of their salary in Bitcoin, either as a value-added incentive or as a streamlined way of operating geographically distributed teams. Having a bulk approvals mechanism will significantly speed up payment flows of this kind. Accounting and tax A comprehensive review of accounting considerations is beyond the scope this article. However, detailed Bitcoin bookkeeping through subledgers provides a solid basis for accounting workflows. Financial reporting Beyond accounting and tax, robust financial reporting can support business intelligence research (for example, an analysis of Bitcoin mining fees over time) as well as fulfilling internal and external audit requirements. TradFi enterprise resource planners (ERPs) such as NetSuite…
The Upgrade You Didn’t Know You Needed
By Jessica Oku | Board Member, Treasury Masterminds By November 2025, SWIFT will fully deactivate legacy MT formats for cross-border payments, finalizing its transition to the ISO 20022 messaging standard. For many, this is seen as just another compliance milestone. But for forward-thinking treasury teams, it represents something much more seismic: ISO 20022 isn’t just a messaging upgrade, but a strategic enabler for real-time treasury, intelligent liquidity, and frictionless global operations. What is ISO 20022? ISO 20022 is a universal financial messaging standard based on XML and a shared data dictionary. Unlike MT messages, it enables structured, machine-readable, and extensible payment data creating a unified language for financial communication. It powers: “By 2025, ISO 20022 will support 80% of global high-value payments by volume and 87% by value.” SWIFT ISO 20022 Adoption Timeline Why Treasurers Should Care 1. Real-Time Cash Visibility With camt.053 (bank statements) and camt.054 (intraday reports), treasury gains: “ISO 20022 adoption improves straight-through processing (STP) by 10–15% in mature payment environments.” EY Global Payments Report, 2024 2. Automated Reconciliation at Scale Structured remittance fields improve AP/AR automation: “Corporates can reduce reconciliation efforts by 30–40% with ISO-native ERP and TMS systems.” Capgemini Payments Transformation Report 3. Smarter Treasury Reporting ISO 20022 enables cleaner, smarter datasets: When your data is structured from the source, reporting becomes strategic, not reactive. The Missed Opportunity Too many organizations are focused on bank compliance rather than data optimization.You might be sending ISO-compliant messages…But are you using the enriched data to drive better liquidity and funding decisions? Strategic Moves for Treasury Teams As a Board Member of Treasury Masterminds, I encourage CFOs and treasurers to take these steps: In conclusion “ISO 20022 is to Treasury what fiber optics was to telecom; richer data, faster flows, and exponential potential.” Don’t just comply with ISO 20022. Capitalize on it. Is your treasury team preparing for ISO-native intelligence or simply surviving the migration? Join the conversation in the Treasury Masterminds community. Let’s make ISO 20022 a lever for strategic transformation, not just another IT migration. References Also Read Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
When a CFO called me at 7 AM on a Tuesday
written by Jeroen Overmaat with his background of Sales at Kyriba Amsterdam, July 12, 2025 The phone rang while I was making coffee. My prospect’s CFO’s, who I met at a CFO event a couple of months ago, voice was tense. “We need to talk about our liquidity position. The board’s asking questions I can’t answer.” This wasn’t the first time I’d heard this conversation. Over the past few months, since I started this job at Kyriba, I’ve watched countless treasurers scramble to provide real-time visibility into their cash positions while their CFOs faced mounting pressure from boards demanding better liquidity risk management. The numbers tell the story. According to the latest Deloitte survey, 96% of treasurers say their top mandate from the CFO is safeguarding against liquidity events. Yet, most are still managing this critical function with spreadsheets and manual processes. The morning that changed everything Six months ago (it was actually one of my first serious Sales calls as a new Sales at Kyriba), I sat across from a treasury director at a €500 million manufacturing company specializing in heavy construction equipment. Let’s call him Mark. His company operated globally with subsidiaries across the Netherlands, China, Brazil, Norway, and Italy, serving the renewable energy, oil and gas, and civil engineering markets. Mark’s CFO had just delivered an ultimatum: get real-time cash visibility across their international operations, or start looking for external help. Mark’s challenge wasn’t unique, but it was particularly complex. His team was downloading bank statements manually from portals, sharing them via email, then consolidating weekly using a mix of financial consolidation/planning tools and Excel. China and Brazil managed cash locally with limited inter-company transactions, while Netherlands, Singapore, USA, and Italy operated through a Dutch cash pool. “I know where our cash sits today,” Mark told me. “But I have no idea where it’ll be next week. And with our project-based business model, that’s a serious problem.” The real cost of flying blind What Mark didn’t realize was how much this visibility gap was costing his company. With €240 million in cash and 10% sitting idle, they were missing significant optimization opportunities. Without accurate cash forecasting, his team couldn’t support the business effectively when large equipment orders required substantial working capital adjustments. The bigger problem? His company’s maturity score was just 1.5 out of 4: well below the industry benchmark of 2.84. They were operating at an “ad-hoc” level with disparate, unstructured processes and highly manual procedures. Mark’s team spent 85% of their time on manual tasks. Their cash forecasting accuracy sat at 65%. They had limited visibility into their global operations, and frankly, the CFO was losing confidence in treasury’s ability to support strategic decisions. Why traditional solutions fall short Mark had tried piecing together solutions. Bank statements were downloaded in MT940 and CSV formats, then uploaded to financial consolidation/planning tools. Manual GL entries were posted in their ERP. Payment workflows existed only in their Chinese entity. Everywhere else relied on manual processes without proper validation or policy enforcement. The risks were mounting. Their risk assessment showed critical threats in cash positioning, payment initiation, disaster recovery, and compliance controls. They faced potential fraud exposure of €34,000 annually, with operational risks adding another €21,000. Most concerning was their payment infrastructure. Lack of standardization and encryption created fraud vulnerabilities. Their disaster recovery plan was essentially non-existent, with elevated risks around payment files being manually downloaded and uploaded to bank portals. The transformation that changed everything The breakthrough came when we implemented Kyriba’s Liquidity Performance Platform. The results were immediate and dramatic. Within weeks, Mark’s team went from spending 85% of their time on manual tasks to just 18%. Their cash forecasting accuracy jumped from 65% to 90%. Most importantly, they achieved 100% real-time cash visibility across all their global operations. But the numbers tell only part of the story. The real transformation was strategic. Mark’s company was already 100% connected to Kyriba’s banking network – all nine of their banks across four countries. This eliminated the need for custom connectivity development, saving them €86,000 in avoided costs plus €13,000 annually in maintenance. The platform’s AI-powered forecasting gave them confidence to optimize their cash position. They reduced idle cash by 43%, releasing €148,000 annually through better business project allocation. Debt optimization delivered another €49,400, while improved investment strategies added €25,600. From cost center to strategic partner Six months later, Mark’s role had completely changed. Instead of chasing bank balances and manually reconciling accounts, he was advising the CFO on capital allocation strategies for major equipment projects. When a competitor became available for acquisition, he could model the liquidity impact within hours, not weeks. The company optimized their cash pooling structures and renegotiated banking relationships based on accurate cash flow projections, a projected saving of €24,300 annually in fees. Most importantly, Mark became the CFO’s trusted advisor on all liquidity-related decisions. When the board asked about cash runway during potential supply chain disruptions, he could run scenario analyses showing exactly how different market conditions would impact their liquidity position. The total projected annual benefits are reaching €497,000: split between €107,000 in productivity gains, €339,000 in financial savings, and €51,000 in risk reduction. The payback period is just 14.2 months with a 215% ROI, so we are counting the months. The competitive advantage hiding in plain sight What struck me about Mark’s transformation was how quickly it happened. Kyriba’s platform didn’t just solve his reporting problems. It gave him the tools to become strategic about liquidity management in a project-heavy, capital-intensive business. The AI-powered cash forecasting eliminated the guesswork around large equipment deliveries and customer payment cycles. Real-time bank connectivity provided instant visibility across their global manufacturing and service network. Scenario modeling let him test different business strategies before committing capital to major projects. But the biggest advantage was psychological. When you can see your cash position clearly across multiple countries and currencies, you make better decisions. When you can forecast accurately despite volatile project timelines, you take calculated risks….
Reciprocal Tariffs: Danger for Asia, Opportunity to Re-direct Capital Flows?
This article is written by HedgeGo The imminent move by the US government to harmonise tariffs on more than 2.5 million imported products represents a massive intervention in the current structure of international trade. The aim is to create a level playing field: If Thailand, for example, imposes a 20% tariff on US imports, US tariffs on Thai products will have to reach the same level. A fair principle – at least on paper. But what does this mean in practical terms for the world’s trade and financial markets? Asia: From Privileged Growth Path to Zone of Uncertainty Many Asian countries have enjoyed an unofficial ‘tariff privilege’ for decades. The developed world, led by the US, accepted sometimes much higher tariffs from their trading partners in order to promote their economic development. This was in the spirit of the global division of labour and helped emerging markets to catch up economically. However, this practice is now being questioned. In many cases, the equalisation of tariff rates means a de facto increase in import duties for Asian products in the US – with noticeable consequences: The first signs are already visible. Canadians are cancelling about 20% of their trips to the US, while Americans are continuing to travel to Canada – a small but symbolic trend. China: Keep Calm, Strengthen Domestic Market While Europe and Canada tend to resist the new US trade doctrine, China is surprisingly calm. Instead of entering a spiral of escalation, the People’s Republic is focusing more on its domestic market. Although it suffers from structural weaknesses such as a struggling property sector and a weak labour market for young people, it still has considerable growth potential. China’s geopolitical positioning is also shrewd: as long as US economic pressure does not directly affect China’s core interests, it will exercise restraint. Strategically, it is taking a long-term view, knowing that the political constellations in the US are volatile. Xi Jinping, on the other hand, is here to stay. At the same time, China is becoming more attractive to international investment capital: technology companies such as Alibaba have made massive gains this year, while Western tech stocks have come under pressure. A comparison with the “Magnificent 7” from the US shows this: The growth dynamic is shifting. Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
Why Growth-Stage Companies Must Prioritize FX Strategy Before Expanding Internationally
This article is a contribution from our content partner, Deaglo Raising capital is a major milestone for any ambitious company. But when international expansion is the next step, financial leaders often overlook one critical risk—foreign exchange (FX) exposure. In the rush to scale operations, enter new markets, or hire global talent, FX risk can quietly erode profit margins, disrupt financial reporting, and even jeopardize funding rounds. Today’s investors are increasingly attuned to this risk—and they expect CFOs and founders to be too. So, why should growth-stage companies develop a robust FX strategy before raising or deploying capital overseas? Here are five compelling reasons. 1. Currency Volatility Can Damage Your Valuation Let’s say your SaaS company secures a $10M contract in euros, but your valuation and financial reporting are in USD. If the euro depreciates by 10% before that revenue hits your books, you’ve effectively lost $1M in enterprise value. That’s not a hypothetical—it’s a common risk in volatile currency markets. Whether you’re preparing for a Series B raise or eyeing an IPO, investors want revenue consistency. A well-structured FX hedging strategy protects earnings and helps you present a stable, reliable financial outlook. 2. Poor FX Management Signals Weak Financial Controls Investors don’t just assess your growth—they assess how you manage it. Companies operating across multiple currencies without a clear FX policy may raise concerns about operational maturity. Institutional investors are now asking: Having a formal FX policy demonstrates financial discipline, risk awareness, and investor readiness—all critical for securing strategic funding. 3. Hidden FX Costs Can Drain Your Expansion Budget Even basic international transactions—like paying overseas vendors or receiving foreign revenue—carry hidden costs. These include wide FX spreads, wire fees, and inefficient execution practices. Many companies unknowingly lose 0.5% to 3% per transaction, which quickly adds up. Sophisticated companies are now: By identifying and minimizing these costs early, you preserve more of your expansion capital. 4. Passive FX Exposure Limits Strategic Flexibility International growth rarely follows a straight path. You might fast-track a LatAm launch or pursue an acquisition in Southeast Asia. These strategic shifts require speed—and pricing certainty. Without FX hedging, exchange rate volatility can delay or derail deals. A proactive FX strategy allows you to move fast and execute with confidence, helping you convince boards, M&A partners, and investors of your plan’s viability. 5. Why an FX Strategy for Growth-Stage Companies Is Now Non-Negotiable Raising capital from global VCs, corporate venture arms, or family offices? Expect FX-related due diligence. We’ve seen GPs delay capital calls or miscalculate IRR due to poor FX risk management at the portfolio company level. Today, LPs are pressuring fund managers to ensure robust FX controls, and that means startups and scaleups must come prepared with clear policies. Establishing FX governance early not only builds trust—it positions you as a globally scalable business. The Bottom Line: FX Strategy is Investor Strategy FX exposure is a silent risk—but it doesn’t have to be. Companies that treat FX like a core financial pillar are better positioned to win investor confidence, protect growth margins, and scale across borders with less friction. At a time when investors demand both vision and operational excellence, your FX strategy could be the difference between a compelling story and a credible one. Join our Treasury Community Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
Bridging Old and New: Citi Steps Into Stablecoins and Crypto ETF Custody
From Treasury Masteminds Citigroup is making a bold move by exploring custody for stablecoins and crypto ETFs, alongside payment services that run on tokenized rails. For treasurers, this is more than just another headline in the ongoing “crypto meets banking” saga; it could reshape how we think about payments, liquidity, and safety in digital assets. Why Now? With new rules requiring stablecoins to be backed by high-quality assets like Treasuries and cash, banks are perfectly positioned to step in. Custody of those reserves is a natural fit. Add to that the surge in crypto ETFs and the growing demand for safe, regulated custody, and it’s clear why Citi is leaning in. What This Means for Corporate Treasury What to Watch Our2Cents This is where old meets new; and treasurers stand to benefit. In short; stablecoins could finally move from being a “crypto trading tool” to a treasury-grade liquidity solution. For corporate treasurers, that means faster payments, cheaper cross-border transfers, and the reassurance of real-asset backing—all wrapped in institutional compliance. Also Read Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
Debunking 4 Currency Management Myths: Protecting Profit Margins in 2025
This article is written by Kantox When it comes to protecting profit margins with micro-hedging programs, most textbooks on corporate finance start with a discussion about the nature of currency risk. Next, they deal with risk mitigation through exposure netting and FX derivatives. This is a world of pristine simplicity, centred on transaction risk. Quite obviously, things are much more complicated in the real world, as firms have different pricing models and types of exposure to currency risk. By challenging some of the most common, but persistent myths around micro-hedging programs to protect profit margins, this blog will help you improve your decision-making as a currency manager. Some of the most entrenched myths include: Let us briefly tackle these myths one by one. And, most importantly, let us see what real-life best practices in fx-risk-management recommend when it comes to the issues involved. Myth #1: One-size-fits-all solutions Open up a book on currency risk management and you will see that transactional fx-risk-management is, mostly, the only game in town. Granted, there will always be an explanation of the different types of exposure to currency risk. But any example or illustration will tend to refer to individual, FX-denominated transactions. This approach leaves aside the challenge of protecting profit margins in the context of forecasted revenues and expenditures, instead of firm sales/purchase orders like in transactional hedging. But hedging based on forecasts creates three challenges: The dilemmas involved are easy to spot. Managers need to protect the budget rate, instead of the pricing rate in each transaction. In addition, the FX hedge rate displays a forward premium or discount compared to the spot rate—and the reality is that most firms have to face both scenarios. Finally, treasury teams would welcome some flexibility in order to take advantage of possible favourable moves in currency markets. These difficulties, conveniently absent from most textbooks, illustrate the the lack of realism that is the hallmark of ‘one-size-fits-all’ FX hedging solutions. When it comes to protecting profit margins in the real world (as opposed to textbooks), best practices indicate three types of FX hedging programs that reflect major scenarios in terms of pricing: Myth #2: Only risk managers are involved Where does FX hide in the business? This may be a surprising question to ask, given that most observers treat currency risk management as a ‘finance-only’ topic. In ‘siloed’ environments, CFOs talk about risk management and CEOs talk about growth. But what if treasurers could tell the C-suite that currencies can be used to spur growth in a decisive way? The case of Marriott International illustrates the point. CEO Anthony Capuano recently mentioned the group’s Bonvoy app: “Downloads rose nearly 30%. Our digital channels remain key drivers of direct bookings”. Here’s where FX is ‘hidden’: as a growth engine that generates high-margin sales. It is not a ‘finance-only’ topic! The case of Marriott International shows that FX may be ‘hidden’ above the EBIDTA line, at the level of the gross margin. Treasurers can do a better job at explaining this. Once the growth-oriented function of currency management is properly understood, protecting profit margins with micro-hedging becomes a necessity. Myth #3: The myth of oversimplicity An article by Risk.net‘s Cole Lipsky mentions the prevalence of 20%-40%-60%- 80% layered hedging programs at US-based firms, as they tackle FX headwinds from the strong USD. This reflects what we call at Kantox the problem of oversimplicity. Such currency hedging programs beg the question: how do we know that the 20%-40%-60%- 80% schedule represents, for a given treasury team, the optimal solution in terms of: Here’s Kantox’s Antonio Rami on the subject: “Do not oversimplify with a 20%-40%-60%-80% layered FX hedging program just because of its easy implementation. The excessive simplicity of the model can have a huge impact, not only on the principal goal (a smooth hedge rate), but also on secondary goals such as the optimisation of forward points”. Myth #4: The need for super-accurate cash flow forecasts The treasury world stands in awe in the face of GenAI tools that are applied to increase cash flow forecasting accuracy. During a meeting of the European Association of Corporate Treasurers Summit in Brussels, ASML’s Jeroen Van Hulten mesmerised the audience as he presented an AI tool that took forecasting accuracy from 70% to over 96%. This is certainly remarkable. Yet, at Kantox we hold an out-of-consensus view: forecasting accuracy is overstated. For most companies, it should not be a major problem when deploying their fx-risk-management program. By design, a layered hedging program tackles the problem of forecast inaccuracy head-on, as it ‘builds’ the FX hedge rate in advance. And that’s not all. By adding a micro-hedging program for firm commitments, hedging is applied to near-certain exposures. With the right technology, hedging programs —and combinations of programs— can achieve a high standard of precision on their own, even with less-than-perfect forecasting accuracy. How technology puts fx-risk-managements myths to rest The last blog of this series will be devoted to a detailed discussion of the automation requirements in best-practices solutions for protecting profit margins from FX risk. We can already anticipate one conclusion: complex currency management scenarios —an undeniable reality in 2025— call for more, not less, technology. Understanding and properly managing currency risk is a challenging undertaking. As complexity increases, manually executing the required tasks will become more difficult. What’s more, it would add an unnecessary layer of operational risk in the shape of email risk, spreadsheet risk, and key person risk—and that’s the last thing treasurers need. Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in Treasury Management or those interested in learning more about various topics related to Treasury Management, including Cash Management, Foreign Exchange Management, and Payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
Scaling at warp speed: A CFO’s guide to controlling chaos
This article is a contribution from one of our content partners, Bound From surviving Amazon’s brutal due diligence to scaling Funding Circle from 100 to 1,500 employees, Alysha Randall has built a career out of successfully navigating chaos. Now a fractional CFO, she helps startups transform disorder into growth. Here, she spills her hard-earned career secrets. Helping a company to scale at hyper speed is not for the faint of heart. It requires huge amounts of resilience, creativity, and a willingness to embrace what Alysha fondly terms “controlled chaos”. While she now runs her own advisory business, Alysha is no stranger to being in the thick of it. Her passion for steering companies through messy times began in 2006, when she moved to the UK (from her native Australia) and joined LoveFilm as Director of Finance & Reporting. Back then, the company was on the brink of being acquired by Amazon, a process that would prove to be a crash course in financial due diligence. “It was absolutely savage,” she admits. “I mean, you’d expect nothing less from such a corporate giant, but Amazon scrutinised everything with a fine-tooth comb. And I spent days locked in a hotel room, being grilled on every inch of the finances. To the point that hotels still give me flashbacks!” Despite the baptism by fire, “it was also a great learning opportunity,” she admits. “That experience taught me how critical it is to have a clean balance sheet and robust financial processes. Regardless of everything else that is going on, those things should be your baseline, especially when preparing for major milestones like acquisitions, IPOs, or fundraising rounds.” Being prepared in advance is always going to be time well spent, she believes. “As FD or CFO, you don’t want to be the one holding up a deal, or worse, the reason it falls through.” Keeping your cool Thankfully, the LoveFilm acquisition went smoothly, so Alysha started looking for her next challenge, and joined Funding Circle in 2013 – when the startup was on the cusp of explosive growth. “When I started, there wasn’t a proper finance function,” she explains. “I had to build everything from scratch while the business was growing at an insane pace, going from 100 employees to 1,500 in just five years.” The growth might have been extraordinary, but it came with more than its fair share of issues. “It was such a fast-paced environment, and there was no CFO to guide me,” Alysha recalls. “I was figuring out leadership on the job, while setting up systems and processes to support the rapid expansion – and simultaneously trying to keep operations efficient and transparent.” It was quite the juggling act, she admits. “And when you’re building as you go, there’s absolutely no room to lose focus. You have to be on the ball 24/7.” This was especially true when it came to getting Funding Circle regulated by the UK’s Financial Conduct Authority (FCA). “We had no FCA experience, and it felt like we were out of our depth,” she says. The process required Alysha’s team to implement controls and systems that satisfied regulatory standards, often at odds with the company’s drive to prioritise customers and growth. “It’s hard to convince a fast-moving business to slow down and focus on compliance, but it had to be done,” she explains. “At times it felt like trying to get a teenager to do something they don’t want to do,” she jokes. But Alysha credits key hires, like Gerard Hurley – now Compliance Director and MLRO at Bound – for helping the company navigate the roadblocks. “He was one of the first compliance experts we brought in. His work was instrumental in getting us across the line,” she says. And despite the steep learning curve, the company successfully achieved FCA regulation, laying the groundwork for its future success. Getting IPO-ready As Funding Circle continued to expand, Alysha took on the enormous task of preparing it for an IPO. This involved streamlining financial processes and data across teams and regions, ensuring the business could present a clear and consistent story to investors. “The biggest challenge was aligning our KPIs,” she explains. “Every team and region had its own definitions, and it took nine months to get everyone on the same page. But if we hadn’t made the effort, it would have severely undermined investor confidence.” For many, this mammoth task, combined with the company’s rapid growth journey, would have been overwhelming. But it fired Alysha up: “I’ve always been drawn to the messy, chaotic stages of businesses,” she admits. “That’s where I can make the biggest impact.” Making a quantum leap No surprise, then, that Alysha launched her own advisory business – Fast Growth Consulting – in 2019, offering fractional CFO services to startups at the seed and Series A stages. The move was about three things: independence, impact, and variety. “Fractional work is perfect for me,” she says. “I get to work with so many different founders and businesses. It’s incredibly rewarding to go into a company where the finances are in disarray, clean things up, and set them on a path to success.” Her clients often come to her at their most vulnerable point, with financial systems that are barely holding together. “At that early stage, most companies have only had an external bookkeeper or a founder trying to manage everything themselves,” she explains. “It’s usually a state of disorder, but that’s where I thrive!” One of her first tasks with any client looking to scale rapidly is aligning the company’s financials with its commercial narrative. “A lot of P&Ls are just lists of expenses in alphabetical order,” she says. “That doesn’t tell you, or investors, anything about the business.” By restructuring the P&L to mirror the founder’s pitch deck, Alysha ensures that the numbers reinforce the company’s narrative. “If your financials align with your pitch, it’s much easier to build trust with investors,” she says. “It’s about creating a cohesive story that shows where the business is going and why it’s worth investing in.” Survival of the fittest Having a strong narrative, backed up by numbers,…