Macro Risk Management in 2022
The first quarter of 2022 has already presented numerous challenges on both geopolitical and macroeconomic fronts – from the ongoing pandemic to inflation risk, trade disruptions, and huge political tensions. TMI invites three experts from NatWest to explain why risk management needn’t be a Herculean task in the year ahead. They outline how treasurers can successfully navigate unexpected twists and turns, and prepare their organisation for growth.
Rather like a modern-day Cerberus, the current risk landscape is a dynamic, triple-headed threat. Treasurers are grappling with three interwoven layers of macro challenges: first, familiar risks such as geopolitical tensions (although new aspects are emerging); second, risks from the past that are experiencing a resurgence, such as inflation; and third, relatively ‘new’ risks, such as the Covid-19 health crisis and digital business models.
According to Conor Maher, Head of Transaction Banking Products, NatWest, “the biggest challenge for treasurers is to continue to navigate these risks in parallel. In other words, searching for an exit route from the pandemic-related struggles, while managing the future risk landscape in terms of interest and inflation rates, as well as the economic impact of tensions in Eastern Europe and elsewhere, alongside new technologies and best practices”.
With this ambitious goal in mind, here are six steps for treasurers to consider when drawing up a risk roadmap for 2022: