The chief finance and value management officer at the Johannesburg, South Africa-based bank explains how companies are strengthening liquidity, diversifying funding, and adopting digital tools to manage rising debt pressures and global volatility.
Global Finance: What risk management innovations are corporates pursuing to address rising debt pressures and uncertain trade regimes?
Arno Daehnke: The convergence of rising debt pressures and uncertain trade regimes is driving a wave of innovation in corporate risk management. Financial leaders are increasingly recognizing that traditional approaches, focused narrowly on cost containment and compliance, are insufficient in a world characterized by systemic shocks and structural shifts.
One of the most significant developments in diversifying funding sources is the rise of sustainability-linked financing. Corporates are issuing green bonds, entering sustainability-linked loans, and participating in blended finance structures that tie funding costs to ESG performance. These instruments not only provide access to capital but also align financing with broader strategic goals, including climate resilience, social impact and governance reform. In addition, corporates are increasingly engaging in strategic advisory partnerships to restructure debt, extend maturities, and align funding strategies with macroeconomic realities. This includes exploring alternative financing channels, such as private placements, syndicated loans, and development finance instruments that offer greater flexibility and resilience.
Digitization is also transforming risk management. Corporates are deploying AI-driven credit analytics, real-time liquidity dashboards, and automated risk scoring systems to enhance decision-making and reduce exposure. These tools enable firms to respond more quickly to market shifts, optimize capital allocation, and improve transparency across financial operations.
Together, these innovations reflect a shift from reactive risk management to strategic resilience. Corporates are not just defending against shocks; they are building systems that enable them to thrive in uncertainty.
GF: How might corporates maintain flexible funding and liquidity buffers amid macro and cross-border shocks?
Daehnke: In an era defined by macroeconomic volatility and cross-border disruptions, maintaining flexible funding and liquidity buffers is no longer a best practice, it is a strategic imperative. Corporates must build capital structures that are not only robust but also agile, capable of absorbing shocks and supporting growth in uncertain conditions.
Diversification of funding sources is foundational. Corporates should maintain access to a mix of local and international debt markets, equity financing, and structured instruments such as revolving credit facilities and asset-backed securities. This diversification reduces dependency on any single funding channel and enhances the ability to respond to market dislocations.
Liquidity buffers must be calibrated to operational cycles and stress-tested against multiple scenarios. Advanced cash flow forecasting tools, integrated with treasury management systems, enable firms to anticipate funding gaps and adjust capital deployment proactively. These tools should be complemented by contingency planning frameworks that include access to emergency credit lines and pre-approved facilities.
GF: What other factors should corporates be considering at this point?
Daehnke: Capital discipline is equally important. Corporates must balance dividend policies, capital expenditure plans, and debt servicing obligations to ensure long-term solvency and strategic flexibility. This includes regular reviews of covenant structures, refinancing options, and interest rate exposures.
Strategic advisory support can also play a critical role. Corporates benefit from partnerships that help them align funding strategies with macroeconomic realities, optimize working capital, and restructure liabilities in response to changing conditions. This includes guidance on optimal capital allocation, liquidity management, and risk-adjusted return strategies.
Ultimately, financial resilience is not just about weathering storms, it is about building the capacity to adapt, evolve, and lead in a world of constant change. Corporates that invest in flexible funding structures and dynamic liquidity management will be better positioned to navigate the complexities of global finance and seize opportunities amid disruption.
