Lessons from North America
While markets shift and supply chains strain, the best treasury teams aren’t scrambling, they’re recalibrating. In this article from our Treasury Beyond Borders series, we explore how North American corporates are redefining risk as a source of strength.
Dealing with disruption
FX volatility, trade disruptions, and geopolitical headwinds have created an operating environment that is anything but predictable. In North America especially, the conversation has shifted from “what if?” to “what now?”. From rethinking supply chains and hedging programmes to deploying new technologies, treasurers are having to balance risk management fundamentals with bold new strategies.
Melissa Hotzoglou, Head of Corporate Sales, US Markets and Securities Services, HSBC, explains: “There’s a much stronger focus now on earnings protection and strategic alignment across functions. This includes scenario analysis, stress testing, and tighter collaboration with FP&A and the C-suite.”
Different sectors are adapting in different ways. Manufacturers are prioritising price stability in global supply chains. Tech and pharma firms are adopting longer-dated hedges and FX options to protect earnings.
At the same time, treasury teams are taking a more systematic approach to operational disruption, reviewing banking relationships, payment rails, and fallback procedures. “These theoreticals of what happens under high stress, they’re not theoreticals anymore,” Hotzoglou notes. “They’re real scenarios that treasury teams are actively testing and responding to.”
Good risk management hygiene in 2025 is about three things: clarity, consistency, and control. “It means having a clear hedging policy with defined objective, leveraging automation to reduce manual effort and the execution risk, and regularly reviewing your business and exposures,” Hotzoglou highlights.
Supply chains rise in prominence
Treasury isn’t working in isolation here. Procurement teams are stepping into the spotlight as strategic partners, with C-suite interest in supply chain resilience remaining high post-Covid.
Marissa Adams, Regional Head of Europe and Americas, Global Trade Solutions, HSBC, reveals: “Treasury and procurement are collaborating more closely – and the results are telling.” She notes that sales is often also involved in these strategic partnerships and that alignment between all three teams in the “strategic triangle” is vital.
“If each angle – i.e., team — isn’t working together effectively, companies can miss out on opportunities to optimise working capital, mitigate risks and create a shared understanding of their supply chains,” Adams adds.
Aligning on shared objectives and peer benchmarking both play a role too in optimising the end-to-end working capital cycle, as does support from banking partners. For example, HSBC plays a role in helping corporate clients understand if they are paying their suppliers earlier than competitors, or collecting sales later. Small changes in DPO or receivables cycles can unlock liquidity – and these are increasingly viewed as strategic levers.
A risk-based approach to sourcing is also gaining ground. Treasury and procurement teams are now evaluating suppliers not only on commercial terms but on exposure to geopolitical, labour, and economic risks. “What used to be annual risk reviews are becoming, “must-do’s” at a more frequent cadence,” Adams adds.
Hotzoglou agrees with this heightened focus. “In the current environment, particularly in supply chain resiliency, creating strong bonds with your suppliers is going to be one of the key elements of success and we’ve already seen it.”
The right banking partner can provide support to CFOs, CPOs and their teams to achieve these shared objectives, which in turn can aid in building resilience and mitigating risk.
Liquidity pressure and the FX link
Sourcing shifts often bring FX implications – not just from market movements, but from trapped cash. “Cash that’s in the wrong currency or wrong place at the wrong time becomes both a liquidity issue and an FX challenge,” warns Hotzoglou.
Leading treasury teams are stress testing infrastructure to avoid this, reviewing payment rails, partners, and contingency plans to maintain mobility. But tariffs and altered trade flows are compressing cash cycles and putting more pressure on working capital.
“Tariffs are paid at the point of clearing customs by the importer, but might not be recouped for 60–90 days, for example,” says Adams. Across markets, this delay adds up. Solutions such as HSBC TradePay enable eligible HSBC US corporate clients to pay import duties upfront while deferring the financial outlay, helping to bridge the gap.
Meanwhile, tools including SCF are becoming differentiators. In industries such as apparel, where suppliers are stretched thin, SCF can help preserve relationships and production flow. “Even companies with strong cash positions are focusing on optimised working capital,” says Adams. “It’s not just about survival, it’s a strategic advantage.”
This should be a priority regardless of how much international trade a corporate has. “In the current environment, every single treasurer should be looking at how they can optimise their working capital and key creative solutions,” Adams adds.
Having that strategic edge pays off. “Corporates that optimise working capital tend to have a higher valuation,” Adams notes. Treasury discipline, in other words, can tie directly to enterprise value.
Debunking hedging myths
As treasurers revisit their FX risk management, some old myths persist. “One of the biggest hurdles that we see to proactive risk management is the perception that FX hedging is either too expensive or too complex,” says Hotzoglou. “But not hedging can be far more costly.” HSBC’s 2024 Corporate Risk Management Survey[1] revealed that FX risk is identified as the most challenging area for corporates, with 28% of CFOs and 58% of treasurers putting it as a top three area of attention.
The idea that hedging is ‘all or nothing’ is being replaced by a more tailored approach. Treasurers are prioritising exposures, aligning policies with business needs, and leveraging automation to stay in control. HSBC’s Autohedge tool, for instance, automates execution based on pre-set policies, freeing teams to focus on strategy.
FX options are gaining traction too, and no longer seen as exotic. “Many companies are layering options onto forward programmes to preserve upside or cover event risks,” Hotzoglou explains. The appetite for flexibility is rising, especially among treasury teams managing volatile earnings or shifting exposures.
There’s also growing interest in FX education. “Younger treasury professionals are asking more questions – and that’s a good thing,” Hotzoglou adds.
Tech shifts to mission critical
But effective risk management is part strategy and part execution – and the latter increasingly depends on tech. Treasury is under pressure to move fast and act with confidence. “Technology is no longer just nice to have. It’s mission critical,” says Hotzoglou.
She highlights three areas of transformation: visibility, speed, and insight. Real-time dashboards, automation, and predictive analytics are helping treasurers identify risks and act faster. Even in trade, still dominated by paper, momentum is building. HSBC has overhauled its trade platform to reduce bottlenecks and improve client experience.
Legal frameworks are progressing too. The UK’s Electronic Trade Documents Act (ETDA)[2] paves the way for paperless trade, with more countries adopting the UNCITRAL Model Law on Electronic Transferable Records (MLETR).[3] But Adams notes that progress is uneven: “Trade is deeply interconnected. A co-ordinated global effort between all parties is needed.”
Leading from the front
Among all these shifts, the most effective treasurers aren’t waiting for disruption – they’re planning for it. “Move from reactive to proactive risk management,” urges Hotzoglou. Run scenarios before the stress hits. Challenge assumptions.
For Adams, that starts with visibility: “If you don’t know what’s out there, you don’t know what risks exist.” Mapping supply chains and payment flows can uncover hidden vulnerabilities.
Adaptability matters too. “FX options can help manage uncertain forecasts and extreme moves,” says Hotzoglou. “If you haven’t explored them, now’s the time. It’s not as complex as it seems – we’re here to help.”
But agility alone isn’t enough. Cohesion is critical. “If treasury, procurement, and sales aren’t aligned, you can over-optimise working capital and still expose yourself to risk,” Adams cautions.
Ultimately, the best-prepared treasurers are doing more than managing exposures. They’re connecting the dots – between currency risk, supplier resilience, and working capital strategy – to build control in an unpredictable world.
