April 24, 2026 l The Manila Times
The past few years have shown that volatility in business has become an everyday reality.
I tend to avoid terms like “black swan event” and “cautiously optimistic” because each year seems to bring a new unpredictable event that challenges even the best-laid assumptions. For chief finance officers (CFOs) the discussion is increasingly focusing on how to proactively handle volatility while maintaining business progress.
Credibility is fundamental. In uncertain situations, stakeholders seek clarity from leaders, but trust depends on belief. Building credibility takes time through consistency, transparency and good judgment. Without it, even strong strategies face challenges, but with it, organizations gain the confidence to manage tough times effectively.
This should be combined with awareness. Volatility can expose blind spots, making it crucial for leaders to identify vulnerabilities early so they can address them effectively.
This highlights the importance of fundamentals. As the saying goes, “cash is king,” and maintaining cash reserves remains vital for business resilience. In volatile conditions, liquidity is a strategic asset. Companies that actively manage cash flow, optimize working capital and keep funding options flexible are better positioned.
Meanwhile, capital structure should be crafted for flexibility. In the past, many companies have rethought their funding strategies, moving away from short-term liabilities, extending debt maturities and strengthening their balance sheets. The goal isn’t merely to reduce costs, but to provide organizations with greater flexibility.
Managing volatility isn’t solely about defending against risks; it also creates opportunities during uncertain times. CFOs face the challenge of balancing risk protection with seizing upside potential. Achieving this balance demands the discipline to conserve resources and the agility to act when the right opportunities come.
Execution is more critical than ever. In unpredictable environments, inefficiencies become more pronounced. Maintaining discipline in working capital, managing costs and ensuring alignment throughout the organization are key to remaining agile. The most successful companies in navigating volatility are typically those that can act swiftly while maintaining control.
Furthermore, communication becomes increasingly important. Stakeholders such as investors, lenders and employees need to understand the current situation and upcoming steps, as well as their roles in addressing it.
Transparency is crucial. While we won’t always have full visibility, that’s acceptable. The key is to be honest about what we know, what we don’t and how we are addressing these issues. Recognizing challenges doesn’t undermine confidence, but often enhances it.
Volatility tests business models and leadership, and the role of finance continues to expand. No longer simply guardians of financial results, CFOs now act as strategic partners.
In times of volatility, trade-offs become inevitable and finance leaders are relied upon to contribute data, insights and judgment to guide those decisions.
Resilience remains crucial, but it’s not sufficient on its own. As Jack Welch said, “An organization’s ability to learn and translate that learning into action rapidly, is the ultimate competitive advantage.”
Therefore, the true challenge lies in creating organizations that cannot only withstand volatility, but also thrive and respond to it with confidence and purpose.
***The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX. For comments, email eaquahiansen@phinma.com.ph. Photo is from Pinterest.