HBR - 6 Mistakes in Risk and Working Capital Management

Treasury is getting on the agenda of the board as I have discussed earlier. This is proved by Harvard Business Review starting to discuss treasury topics. In the March edition of HBR they list 6 ways companies mismanage risk and in the May edition they list 6 mistakes or "don'ts" of working capital management. The articles are well worth reading. They describe the changing role of treasury when managing the cash flow has become more important than managing earnings short term. The first "don't" HBR lists in working capital management is "don't manage to the income statement". I agree - cash KPIs are here to stay.