McKinsey survey shows 65% of finance leaders prioritize liquidity over expansion as geopolitical shocks reshape risk exposure.
Nearly two-thirds of CFOs are increasing cash and liquidity buffers in response to persistent geopolitical volatility, according to a McKinsey survey. Tariffs, currency swings, and inflation are forcing structural adjustments, with fewer than half planning market expansion or diversification.
The shift reflects a broader retreat from international markets, as finance leaders seek stability in familiar territories. However, concentrating revenue in single markets may amplify exposure to localized shocks, such as regulatory changes or currency fluctuations.
Diversification remains a key risk mitigation tool, as distributed revenue streams can offset disruptions in individual regions. The trend underscores a strategic tension between perceived safety and long-term resilience.