“The goal is to be prepared without being paralyzed by over-planning,” says alliantConsulting managing director Joy Taylor.

“Certainty is a CFO’s best friend. Certainty can be accurately modeled, planned for and strategized against,” says Joy Taylor, managing director of Houston-based alliantConsulting. Moments of disruption and uncertainty, of course, are another matter.  

The contentious international trade environment and the U.S.’s aggressive posturing on tariffs certainly have the potential to throw a wrench into many carefully thought-out business plans. All sectors of the U.S. economy could be affected, not just firms that import and export tangible goods. 

How should CFOs approach this period of potential rapid shifts in government policy and regulation? In an interview, Taylor shared the advice she’s providing her CFO clients.

What planning should CFOs be doing today in preparation for upcoming U.S. policy changes in international trade and other areas?

Even as news flows in about the new administration’s intentions for economic policy changes like new tariffs, it remains unclear when or even if those exact changes will take place. Nonetheless, preparation is key.  

CFOs should be monitoring policy developments closely. For example, organizations that rely heavily on imports or exports should proactively plan for multiple tariff scenarios and review the potential effects. 

These steps empower finance departments to foresee which levers they might need to pull should these policies move forward. Along those lines, I recommend reviewing supply chains and supplier contract terms, assessing tax credits and incentives and devising cash and liquidity management plans for different scenarios. 

Now is the time to enhance risk management efforts and use robust data, analytics and forecasting capabilities. 

Is it possible to overreact? Is it beneficial to be mapping models for these potential trade policies this early?  

The goal is to be prepared without being paralyzed by over-planning. CFOs should aim for a level of preparedness that enhances decision-making and risk management without detracting from business priorities or creating undue stress within the organization.  

I know there are CFOs worried about initiating this planning process because their organization doesn’t have the experience, and that’s all right. If this isn’t a familiar muscle, find it, build it or rent it. Any plan goes a long way to preventing assumptions or decision-making not backed by data.  

Remember, this isn’t a one-time exercise. All modeling scenarios should be regularly reviewed for accuracy and updated when new information is available.

Should these policies go into effect and significantly impact specific sectors, how can CFOs best navigate the changes?

These moments of disruption also present the perfect opportunity to improve the capabilities of the CFO’s office. Staying informed about policy and government impacts, thoughtfully engaging technology, being transparent about the challenges and sharing the company’s response will help finance emerge as more potent and competitive. 

Oil, gas and utility companies frequently have to respond to legislative disruption. They have a strong track record of leaning into digital transformation in financial planning to respond dynamically. That approach has allowed [my] clients in those sectors to make the most of policy changes and deepen their relationships with regulators.  

The secret is to remain flexible and forward-thinking when addressing this new policy landscape’s challenges and opportunities. I encourage all CFOs to lean into the challenge and embrace the timing. This tumultuous period is an opportunity to equip the finance organization to shape the company’s future.