Stop Letting Idle Cash Collect Dust - Start Making It Work
Triggered by events like the Silicon Valley Bank collapse, cash, once viewed as a low-risk afterthought, is now clearly a strategic lever. With rising interest rates, cash can generate real returns, but only when managed actively. Rogers urges finance leaders to adopt a disciplined, risk-aware approach to cash management that aligns with business goals. By treating cash as a dynamic asset, not just a buffer, companies can improve resilience, reduce inefficiencies, and drive value.
Key Takeaways:
Cash carries risk: SVB’s collapse showed that even “safe” cash can be vulnerable.
Yields are back: Higher interest rates mean excess cash can now earn meaningful returns.
Risk-adjusted strategies are essential: Diversifying counterparty exposure and aligning cash with operational needs is crucial.
Finance can be a value driver: Strategic cash segmentation (liquidity, reserves, allocations) enhances efficiency.
Idle cash has a cost: Every euro sitting still is a missed opportunity.
Smart cash management = strategic agility: It reduces waste, improves optionality, and supports long-term goals.