Treasury Insights

Maintaining Treasury Operations Continuity in Turbulent Times

While there is no silver bullet, our experience indicates that proactive steps could help enhance the resiliency of your treasury operations: adjust and adapt, communicate effectively, work with your partners and be alert to enhanced risk.


The repercussions of the rolling global crisis triggered by COVID-19 are being felt everywhere. We have seen a number of governments start to follow central banks in responding to this fast-evolving situation by enacting emergency legislation and introducing extraordinary fiscal measures to support their economies and mitigate direct impacts on businesses and individuals.

  • While markets have cautiously welcomed this support, it's clear that business operations have been disrupted in a meaningful way — with direct implications for treasury operations.
  • Treasury professionals are at once having to deal with interlocking risks regarding people, systems and execution of payments across their banking partners and supply chains.
  • To this end, we have been working closely with our clients to help them identify potential scenarios and provide solutions for acute pain points that pose risks to operational continuity.
  • This includes risks around cash repatriation and funding, gaps in coordination that may impact payment flows and potential inaccessibility to critical systems from remote working environments.

 

Some tips on maintaining continuity, based on what we observed in the first few months of the crisis:

Adjust

  • Adjust alternate work arrangements / contingency for greater balance and diversity to optimize coverage and continuity for an extended period.
  • Create system redundancy, such as operating in multiple sites simultaneously during peak times of the day.
  • Cross-train personnel so that staff are ready to assume multiple roles, if needed.
  • Where possible, move applications and capabilities to digital channels to facilitate client-facing activities and to scale up self-service functions.

 Communicate

  • Ensure that your crisis communication plan covers both internal and external stakeholders.
  • Reach out to your customers, key suppliers and third-party vendors to help them understand your current contingency and business continuity set-up.

Partner

  • Work with your key suppliers, third-party vendors and banking partners to move to digital and automated channels where possible.
  • Work together with your banking partners and understand their contingency plans and how they can help you with your current or foreseeable challenges (e.g., eSignature).

Be alert

  • Remain alert for cyberattacks and fraud that are likely to increase in times of stress and disruption.

Be bold. Challenge yourself. Challenge your bank partners.

In these uncertain times, we thank you again for your continued trust in J.P. Morgan. Please contact your J.P. Morgan representative for further information.

Webcast Series:
How Treasury and Payments can Lead in a Dynamic Environment


Enjoyed this article? Listen to our full webcast on this topic with subject experts from across J.P. Morgan discussing real-life examples. Registration is required.

Maintaining Treasury Operations Continuity in Turbulent Times

 

Listen to our other webcast replays:

 

Managing Liquidity in a Dynamic Environment

How do you ensure sufficient liquidity and access to it? How do you direct liquidity to the right place, at the right time and in the right currency?

Harnessing the Power of Digital to Manage Disruption  

What are the strategic challenges triggered by COVID-19 and what are the implications for treasury? Hear real-life case studies about how you can deploy digital capabilities to turn crisis into further opportunity.

Staying Focused on Cybersecurity and Fraud Prevention

What are the immediate risks around cybersecurity and fraud? What are the best practices to safeguard treasury and payments flows?

Optimizing Working Capital for Today’s Challenges

What are the working capital pressures in the current environment? What are the best practices to consider in payables, receivables and inventory management and financing?

Registration is required for all webcasts.

 

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