A CXO Dialogue with Aniruddha Gadre, Global Head -Treasury and Insurance, Tech Mahindra Limited
As risks become more interconnected and less predictable, treasury functions are being pushed beyond traditional boundaries of protection and compliance. From insurance strategy to capital allocation and technology-led transformation, the shift is now towards building intelligence-led, forward-looking frameworks. In the second part of the CXO Dialogue exclusive interview with Puru Shah from the RiskAwareness.in team, Aniruddha Gadre, Global Head -Treasury and Insurance, Tech Mahindra Limited outlines how treasury is evolving from managing risk to actively shaping business resilience and growth.
Insurance as Strategy, Not Safety Net
Insurance is increasingly being viewed as a strategic risk-transfer tool. How are you integrating insurance into broader enterprise risk management?
At its core, insurance is the transfer of insurable risk to an expert, the insurer, at a defined cost/premium. However, the strategic value of insurance lies not in the transaction itself, but in how effectively it is embedded within the broader enterprise risk management (ERM) framework.
Traditionally, many organizations have treated insurance as a routine procurement activity, often confined to finance or HR functions and renewed annually without deeper strategic evaluation. This approach is increasingly inadequate in a world where risks are interconnected, global and constantly evolving.
As businesses expand across geographies and operate in more complex environments, insurance is being repositioned as a critical component of risk strategy. This involves systematically identifying exposures, assessing their financial impact and aligning insurance coverage with the organization’s overall risk appetite and business objectives.
A structured insurance risk management framework becomes essential in this context. It combines risk control through stronger processes, compliance and technology, with risk transfer via tailored insurance solutions. The use of a well-defined ‘Risk Register’ further strengthens this approach by linking identified risks with mitigation strategies, including insurance coverage.
One of the most significant shifts is visible in the way organizations approach cyber risk. Unlike traditional risks, cyber threats are dynamic, high-frequency and potentially catastrophic in impact. This requires specialized insurance solutions that go beyond standard coverage, incorporating both first-party and third-party liabilities, Business Interruption (BI) losses linked to cyber incidents and associated legal and forensic costs.
At the same time, technology organizations are moving towards more flexible and optimized insurance structures. Instead of relying on a one-size-fits-all coverage model, many are adopting layered approaches, using captive mechanisms to absorb smaller losses while transferring catastrophic risks to the external market. This not only improves cost efficiency but also enhances control over claims and underwriting terms.
Importantly, insurance strategy is becoming more data-driven. Frequent benchmarking against peers, continuous review of coverage adequacy and alignment with evolving risk landscapes are enabling organizations to negotiate better terms and avoid over-insurance or coverage gaps.
Ultimately, the shift is from passive protection to proactive risk transfer, where insurance is not just a safeguard, but a strategic enabler that allows organizations to take calibrated risks and pursue growth with greater confidence.
Capital Efficiency and Growth Trade-offs
How do you approach capital allocation decisions when balancing liquidity buffers with growth and innovation?
Capital allocation in today’s environment is fundamentally about balancing resilience with growth. The objective is not to choose one over the other, but to create a framework where both can coexist and reinforce each other.
A disciplined approach begins with strategic alignment, ensuring that every capital deployment decision is closely linked to the organization’s long-term objectives. This provides clarity on where to prioritize investments and how to evaluate trade-offs.
Risk assessment plays a central role in this process. Each investment decision must be evaluated not only on potential returns but also on the associated risks and its impact on the organization’s financial stability. This becomes particularly important in volatile environments, where liquidity buffers act as a critical safeguard.
At the same time, organizations must remain committed to growth and innovation. Holding excess liquidity without a clear deployment strategy can dilute returns, while under-investing in innovation can weaken long-term competitiveness. The key lies in structuring capital allocation across defined “buckets” such as defensive, foundational and growth investments, ensuring that liquidity is protected while growth opportunities are actively pursued.
This approach allows organizations to maintain financial flexibility while continuing to invest in areas that drive future value. In practice, it also enables quicker decision-making when opportunities arise, as the underlying capital framework is already defined.
The most effective capital allocators recognize that resilience and growth are not competing priorities. A strong balance sheet provides the confidence to invest, while disciplined investments reinforce long-term resilience. The interplay between the two is what ultimately drives sustainable value creation.
Technology and the Future of Treasury
How is technology reshaping decision-making within treasury, and where do you see the most tangible impact over the next 3-5 years?
Technology is fundamentally redefining treasury by shifting it from a reactive, process-driven function to a proactive, intelligence-led capability. The convergence of AI, machine learning, automation and real-time systems is enabling treasury teams to operate with unprecedented speed, accuracy and insight.
One of the most immediate impacts is in cash visibility and forecasting. AI-driven models can analyse large datasets from ERP systems to market indicators to generate highly accurate and granular cash flow forecasts. This allows treasurers to move from managing shortfalls reactively to proactively optimizing liquidity and investment decisions.
Real-time treasury systems, powered by APIs, are further enhancing this capability by providing continuous visibility into global cash positions. This eliminates the constraints of batch processing and enables just-in-time liquidity management, particularly critical in volatile markets.
Automation is also transforming operational efficiency. Routine tasks such as reconciliation, invoice processing and reporting are increasingly being handled by robotic process automation and AI, freeing up treasury teams to focus on strategic decision-making.
Looking ahead, the evolution towards “agentic AI” is likely to be a defining trend. These systems can operate within predefined parameters to execute transactions such as FX hedging or cash sweeping, bringing the concept of a “self-driving treasury” closer to reality.
Over the next three to five years, the most tangible impact will be seen in real-time payment integration, AI-driven forecasting and the gradual transition towards autonomous treasury operations. At the same time, the role of treasury professionals will evolve significantly from operational managers to strategic advisors who guide the C-suite on risk, liquidity and capital decisions.
Technology, therefore, is not just enhancing efficiency, it is fundamentally elevating the strategic relevance of treasury within the organization.
Risk Management to Risk Intelligence
What distinguishes “risk-intelligent” organizations from those that are merely “risk-aware”?
The distinction between risk-aware and risk-intelligent organizations lies primarily in mindset and execution.
Risk-aware organizations tend to view risk as a threat. Their approach is largely reactive, focused on identifying and mitigating risks after they materialize. Risk management, in such cases, often becomes a compliance-driven activity, guided by historical data and aimed at avoiding negative outcomes.
In contrast, risk-intelligent organizations view risk as an integral part of value creation. They recognize that risk and opportunity are inseparable, and use risk insights to make better, more informed decisions. This requires a shift from static frameworks to dynamic, technology-enabled systems that provide real-time visibility and predictive insights.
The transition to risk intelligence is driven by the adoption of advanced analytics, AI and integrated systems that can identify, quantify and anticipate risks across liquidity, markets and operations. Instead of asking what went wrong, these organizations focus on what could go wrong and how to prepare for it in advance.
Treasury plays a critical role in enabling this transition. Given its visibility across financial flows and exposures, it is uniquely positioned to act as the nerve centre for risk intelligence, bringing together data, insights and strategic decision-making.
Ultimately, becoming risk-intelligent is not just about better tools or frameworks. It is about embedding a proactive, forward-looking approach into the organization’s DNA, where risk is continuously assessed, actively managed and strategically leveraged to drive competitive advantage.
Disclaimer: Views expressed in the article are the personal opinions of the author and do not reflect the views of Tech Mahindra, its subsidiaries or associated companies.
