Central Alabama business

owners are no strangers

to risk. Amid market

uncertainty and economic

fluctuations, many River

Region leaders are

reassessing how they

manage risk. While some

are hesitant to make

decisions, others are

embracing this time as a

chance to prepare for

future growth.

In fact, Valley’ s 2025 State of Business Survey found that 86 % of businesses expect their revenue to increase by 10 % or more this year, signaling optimism across the region.

Optimism is fueled by Central Alabama’ s unique economic landscape and emerging industries, including transportation, information technology, medical, manufacturing, construction and government. While these sectors drive economic growth, they also introduce new challenges— particularly as changing tariff policies affect international supply chains that local businesses rely on.

These complexities underscore the importance of establishing a comprehensive risk management strategy that

includes financial planning, operational flexibility and strong banking relationships. Here are five key strategies successful Montgomery businesses are using to manage risk and build resilience.

FIVE LONG-TERM RESILIENCE STRATEGIES

Build a Strong Banking Relationship Early:

The sooner you engage your banker, the faster they can help you adjust operations. Without a strong relationship, securing financing may take longer— potentially leading to missed opportunities.

Strengthen Your Balance Sheet:

Consider retaining cash reserves, paying down debt or reducing unnecessary spending. Treasury management tools can also improve cash flow visibility and streamline operations.

Secure Credit Before You Need It:

The best time to increase your credit capacity is before it becomes urgent. Establishing credit early ensures you’ re ready to act when new opportunities arise.

Diversify Operations and Supply Chains:

As tariff policies continue to fluctuate, avoid reactive decisions. Instead, build a diversified supplier network— including domestic options— to reduce vulnerabilities. Your banking partner may also help connect you with suppliers, advisors and other strategic partners.

Build a Talent Pipeline:

Valley Bank’ s 2025 State of Business Survey shows that 42 % of business leaders struggle to find qualified employees. Think of recruiting like a sales function— develop relationships with potential candidates before you need to hire.

YOUR BANK IS A RISK MANAGEMENT PARTNER

As you wrap up 2025 and begin planning for next year, a strong banking relationship is more than financial support, it’ s a strategic advantage. Valley’ s Central Alabama Banking team combines its deep local market knowledge with national resources to support clients at every stage of growth. Now is an ideal time to reach out to your local team to create or revise your risk management strategy.

Brad Westerman is

Vice President, Market

Manager at Valley Bank in

Montgomery and has been

in the banking industry for

7 years.

© 2025 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights Reserved.

BRAD WESTERMAN 334.538.4879

80 CentrAL Inc!