An alert treasurer should take precautionary steps when recession is looming. Here is a risk management checklist, courtesy of Jeffrey Wallace, managing partner of Greenwich Treasury Advisors in Boulder, Colo.

- Make sure your short-term cash forecast isn't based on flawed historical accounts receivable (A/R) and inventory data from better times.

- Compare A/R to sales. Gross A/R may appear to be holding up, but if sales are declining, customers are also feeling the pinch and are likely to begin paying more slowly. This could trip up your forecast.

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