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With the year 2025 already proving unpredictable, treasury teams are contending with many overlapping risks. From the ripple effects of ongoing conflicts and a fracturing global trade system, to diverging central bank policies and the looming impact of major elections, volatility is no longer an occasional challenge—it’s a constant.

Against this backdrop, three senior treasury professionals shared how they are reshaping risk management strategies to keep pace at the Treasury & Cash Management Summit West Coast. Their conversation explored how treasurers are responding to new exposures in emerging markets, rethinking scenario planning, and balancing agility with long-term financial stability.

The strategic imperative to free up cash

For Ara Hamamjian, treasurer and executive director at BioMarin Pharmaceuticals, an American biotechnology company, the conversation around working capital has shifted from optional to essential. “We were typically happy to burn cash and grow,” he explained, “but two things have changed: our M&A focus and the rising cost of money.” With interest rates climbing, freeing up balance sheet cash has become a capital allocation priority.

At Varel Energy Solutions, a downhole oilfield supply company, vice president and global treasurer Jeremy Reedus shared a similar transformation. “From a world where cash was no object, we’re now in a place where cash is very much a big object,” he said. His task: build a treasury department and reverse-engineer cash flows across the enterprise. “Revenue is vanity, margin is sanity—but cash is still king,” Reedus quipped, underscoring the growing urgency to manage liquidity more deliberately.

The operational challenge: inventory vs. DPO

When it comes to working capital levers, inventory remains the most tempting yet elusive prize. “Inventory is the juiciest piece of meat,” said Reedus, “but no one wants to tackle it because it’s a monster that requires operations to get involved.” Instead, he has focused on extending Days Payable Outstanding (DPO) through supply chain finance, which offers more immediate returns and technological support from banks.

Hamamjian supported a holistic approach. “You don’t just do one thing at a time,” he said. “We’re looking at all levers—source-to-pay, DPO, inventory—simultaneously.” For BioMarin, however, the nature of the business demands careful calibration. As the sole producer of life-saving medications, “we’re not looking for high turnover—we’re looking for shelf life and product availability in hospitals,” he explained.

Reedus added that his company has specific challenges. With consignment stock and contractual obligations to maintain minimum inventory levels in certain regions, Varel must balance efficiency with risk. “It’s a balancing act. There’s no one-size-fits-all.”

Getting a seat at the table

Historically, treasury teams have struggled to gain influence beyond their core functions. “People used to think of us as bank account administrators,” said Hamamjian. The key to changing that perception? “Make working capital a corporate goal.” At BioMarin, treasury’s involvement in capital allocation and innovation strategy helped secure its strategic position. “The CFO said, ‘I want you to be part of this.’ I volunteered and figured it out later.”

Reedus stressed the importance of cross-functional alliances. “The Treasury is responsible for everything but owns nothing,” he noted. Building partnerships with operations and IT has been critical to driving change. “Get IT involved early. Make them part of the journey and speak their language.”

Technology’s evolving role

All three treasurers acknowledged the foundational role of technology in transforming working capital management. For Bruce Edlund, Group Director and Assistant Treasurer at Cloud Software Group, visibility is crucial. “We have automated access to about 99% of our cash,” he said. Before implementing a formal system, Edlund’s team relied on internal data visualisation tools.

Their current API-based system offers seamless global balance visibility. “That’s the core of everything we do,” said Edlund. He also pointed to the value of modern tools with built-in AI features—like natural language search—which streamline workflows without requiring advanced coding skills. “When you take syntax out of it, you really start asking questions like a normal person.”

While Hamamjian’s team is still in the early stages of their SAP transition, he stressed the importance of preparation. “We have very good visibility now—by entity, currency, liquidity, tenure,” he said. “It’s all about assess, quantify, optimise.”

The role of AI: hype or help?

“Initially, I thought AI would go the way of using Bitcoin for cash,” joked Reedus. “But now, with lean treasury teams and limited resources, we have to look at AI for survival.” He sees potential in areas like cash forecasting, where a more scientific approach could produce large gains.

Hamamjian sees AI as a complement to human judgment. “There are plenty of places where none of us should be opening spreadsheets anymore,” he said. He envisions AI evolving to predict exposures—such as P&L volatility by currency—based on the growing consolidation of internal data. “We need to start storing that data now, so we’re ready when the time comes.”

Reflecting on what they might have done differently, the treasures emphasised team culture and early investment in partnerships. “We’ve been lucky—our team is really into technology, and we haven’t had to rehire anyone,” said Edlund. For Reedus, the key is relationship-building. “Make sure IT is bought in early, and make your case clearly. Everyone’s understaffed—so get to the front of the line.”

Hamamjian agreed, admitting that earlier IT collaboration would have been beneficial. “We were off doing our own thing, looking at tools. But they’ve got their budget and priorities—we were probably at the bottom of the pile.”

He also underscored the need for dedicated tech talent within the treasury. “Having someone with technology in their title—not just a hobbyist—is something I’m now thinking seriously about.”

Choosing the right metric

When it comes to measuring success, the panelists agreed that no single metric tells the whole story. Inventory turns, cash conversion cycles, and cash on hand all have their place, but context is key. In businesses like BioMarin and Varel, where product availability can mean the difference between life and death—or contract compliance and breach—strategy must be prioritised over simplicity.

Ultimately, the session reinforced an enduring truth in treasury: cash is still king, but the way to reign is changing. From AI to automation, from partnership to performance metrics, the treasurer’s toolbox is evolving—and those who embrace the change will be most preparedto lead.