Risk Management
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3
 min read

Managing Financial Partner Risk

You should always have at least two financial partners. One for day-to-day banking and another where you safeguard assets and mitigate risks. This is not a new strategy.

Managing Financial Partner Risk

How do you deal with the threat of losing your company cash like so many companies have faced?

MAR 17, 2023

You should always have at least two financial partners.

One for day-to-day banking and another where you safeguard assets and mitigate risks.

This is not a new strategy.

Most public companies already use this strategy to manage risk for the scenario we saw last week.

Working with multiple partners can help diversify a company's financial relationships and reduce the risk of being too reliant on a single partner.

Cash sweep accounts are the hot topic right now and provide access to more FDIC Insurance than a typical account (we offer one), but they do not mitigate the risk of a partner failing.

As we saw last week, partner failure = massive disruption, panic, and potential loss.

By having multiple partners, a company can spread its financial activities across different partners and minimize the risk of disruption if one faces difficulties.

However, not every business has a finance team the same size as a public company to manage diversification.

Managing 2 partners can mean duplicate work (and, sometimes, 2 awful customer experiences).

Moving urgent funds between 2 partners can be slow.

Still, companies shouldn't have a single point of failure for their financial health, reputation, and operations.

At Holdings, we are your secondary financial partner offering tools & financial products to manage multiple partners and risks in your business.

Today, we help manage:
Bank risk with $3M FDIC
Inflation risk with 3.5% annual yield
Partner risk by diversifying relationship


We are not a banking provider helping you with your day-to-day financial transactions. We don’t want to be that.

We are your risk management partner that works alongside whichever bank you like.

If you are looking for a new primary banking provider first, I have many friends and partners to whom I would be happy to introduce you.

When you are ready to make sure you never experience last week again and manage risk appropriately, sign up at Holdings.io.

The Holdings Team
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