Risk Insights: What Treasury Leaders Need to Know in 2025

When it comes to managing a treasury, risk isn’t a nice‑to‑have topic – it’s a daily reality. Every decision, from buying Bitcoin to locking in a mortgage rate, carries a risk that can swing your bottom line. Understanding those risks, measuring them, and having a plan to mitigate them can be the difference between steady growth and a costly surprise.

Why Knowing Your Risk Matters

Risk awareness lets you allocate capital where the upside outweighs the downside. It also helps you talk the same language as your board, regulators, and investors. If you can show that you’ve scoped out the worst‑case scenario and have a backup, you build credibility and confidence across the whole organisation.

Common Risks Treasury Leaders Face

Below are the most‑talked‑about risks you’ll see on Treasury Leaders Hub. Each comes with a short, practical tip you can start using today.

Pension Risk: Defined benefit schemes can be hit hard by longevity shifts and market drops. Run a stress test using a 10‑year horizon and see how funding ratios change. If the gap widens, consider a partial buy‑in or a de‑risking strategy with annuities.

Crypto Risk: Bitcoin and altcoins are still volatile. Before you allocate any treasury cash, treat crypto like a high‑beta stock – limit exposure to no more than 2‑3% of total assets and keep the rest in liquid, low‑risk instruments.

Mortgage & Remortgage Risk: Interest‑rate spikes can make a remortgage far more expensive than expected. Use a rate‑lock calculator and compare a fixed‑rate product with a capped‑rate option to see which caps your costs better.

Loan & Credit Risk: Personal and business loans can sour if borrowers’ credit scores slip. Adopt a tiered pricing model – reward borrowers with scores above 720 with lower rates and add a small buffer for those below.

Another sneaky area is consolidation loan risk. While it can simplify payments, it may also extend the loan term and increase total interest paid. Run a simple spreadsheet: total interest before consolidation vs. after. If the post‑consolidation interest is higher, think twice.

Now that you’ve seen the big picture, here’s a quick checklist you can copy into your risk register:

• Identify the risk (pension, crypto, mortgage, loan, etc.).
• Quantify potential loss using realistic scenarios.
• Assign a risk owner – someone who will monitor it weekly.
• Set a mitigation action (stress‑test, limit exposure, hedge, etc.).
• Review and update quarterly or after any major market move.

Putting this checklist to work doesn’t take hours. A 15‑minute session each week keeps you ahead of surprises and shows senior management you’re on top of things.

Remember, risk isn’t something you eliminate – it’s something you manage. By staying curious, testing assumptions, and keeping a simple, repeatable process, your treasury can navigate 2025’s twists with confidence.