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.
