The following is a guest article by Kelley Pruetz, APQC's Principal Research Lead. The views expressed are solely those of the author.

In the current economic environment, resilience is no longer just a buzzword but a key to sustained profitability. Although interest rates may have stabilized, the overall situation remains volatile. Inflation continues to drive up operating costs, customer payment behaviors are changing, and access to credit remains tight. These pressures are unlikely to subside in the near term.

APQC's "Cash Flow and Liquidity Management Practices" survey confirms this reality: nearly half of organizations (43%) cite inflation and rising costs as the most important economic trend affecting liquidity; 39% have reduced their reliance on short-term borrowing due to higher financing costs.

In this context, resilience means more than just the ability to weather the next major disruption; it means building the capacity to adapt, respond, and thrive even when the future is uncertain.

Through continuous investment in technology, process improvement, and planning, leading organizations are building the capabilities to thrive regardless of the financial future.

Key Liquidity Challenges

Finance departments today face a diverse set of liquidity-related challenges. More than half of respondents (54%) cite cash flow forecasting accuracy as the biggest challenge, while 52% point to difficulties in balancing cash reserves with growth. Organizations are also grappling with debt management, adapting to changes in customer payment behavior, and securing reliable funding sources.

These challenges expose fundamental deficiencies in organizations' liquidity management. The widespread difficulties in forecasting and reserve balancing indicate a need for more adaptive, data-driven approaches, as well as better visibility, agility, and planning capabilities.

Three Strategic Responses

Finance departments and their organizations are optimizing cash flow forecasting processes, investing in advanced technology, and adjusting capital and financing structures to address the current diverse liquidity challenges.

1. Improving Forecasting Processes

More than half of respondents (55%) say they are increasing focus on forecasting and liquidity planning to address liquidity pressures; 50% say they are specifically working to improve forecasting processes. Optimized forecasting processes help finance teams anticipate liquidity gaps, test different economic scenarios, and make decisions with greater confidence. These benefits, in turn, enable organizations to act early rather than react belatedly.

2. Leveraging Technology

Process improvement and optimization lay the foundation for effectively leveraging technology. Tools driven by automation and artificial intelligence reduce manual errors, improve visibility, and enable more timely responses to changes. For example, organizations using financial automation for forecasting report a median 40% improvement in forecast accuracy. Therefore, it is not surprising that about half of respondents (49%) are investing in automation and AI to achieve such benefits and gain real-time liquidity insights.

3. Rebalancing Capital and Financing Strategies

To maintain liquidity and financial flexibility, organizations are making prudent adjustments to capital expenditures and funding sources, such as:

  • 43% of respondents are increasing cash reserves
  • 36% have adjusted capital expenditures
  • 35% have secured new credit lines or diversified funding sources

These initiatives mark a shift from growth-driven spending toward more cautious, risk-aware financial planning.

Contingency Strategies: Preparing for the Unexpected

Although many organizations have taken concrete steps to strengthen liquidity, nearly half (47%) say their strategies are only "partially effective." There is undoubtedly an opportunity for organizations to strengthen liquidity practices, but it is equally true that even the best-laid plans of finance departments can fall short when conditions change unexpectedly. This is why contingency planning has become a critical component of resilience for many organizations.

The most popular contingency measure is establishing internal crisis cash reserves (56%). Organizations are also diversifying revenue streams, using scenario planning, and implementing hedging strategies.

These measures ensure liquidity is maintained even when forecasts miss the mark.

The disruptions facing organizations and their finance departments will not disappear in the near term. More fundamentally, practices that once gave organizations a competitive advantage—such as using technology in forecasting—are rapidly becoming prerequisites for competing.

Organizations that take decisive steps to strengthen forecasting, invest in technology, and adjust capital and financing strategies are not just managing liquidity; they are building the capacity to adapt, respond, and lead. As economic conditions continue to evolve, the most resilient finance teams will be those that view uncertainty as an opportunity rather than a threat and are committed to smarter, more agile financial decision-making.