Lessons in Leadership: Under Pressure? Control What You Can

If anyone is familiar with economic uncertainty, it’s Airbnb CEO Brian Chesky. Within eight weeks of the pandemic onset, Airbnb lost 80% of its business.1 Hosts, facing almost nonexistent bookings and astronomic cancellation rates, sued the company. In early 2021, Airbnb reported $3.4 billion in revenue — a 30% decline from the previous year.2 In an April 22, 2020 post, even WIRED magazine asked, “Is this the end of Airbnb”?

It was Chesky’s job to pull his company out of the danger zone. And he did.

During the throes of travel and hospitality industry disruption, Airbnb filed its initial public offering at $68 per share which rose two times that price to $144.71. In 2024, the company’s revenue was more than $11 billion — triple what it was during the 2020 IPO.3 Recent estimates suggest Airbnb now owns greater than 20% of vacation rental industry market share.4

How was Chesky able to amass such positive results both during and within four short years of a worldwide crisis? He stayed true to Airbnb’s strategic pillars, one of which is “perfecting the core service.”5

Establish risk management best practices.

Fast forward just a few years and history seems to be repeating itself with a frenetic economy, geopolitical unrest and nebulous trade policies. In a roundtable discussion, we asked three Synovus experts in finance and world trade to share their perspectives on managing risk in the current business environment.

Synovus Head of International Banking, Dr. Jeffrey Beisler-Snell, advises starting with calm reflection.

“Everyone feels a bit shell-shocked. However, it’s wise to pause and look back to the recent past. In doing so, we’re reminded that we’ve survived a global pandemic and continue to prevail amidst persistent international conflicts. The U.S. is a resilient country with an equally resilient business climate.”

Head of International Trade and Supply Chain Finance Michael Babbitt and Head of Capital Markets-Derivatives Tom Loffredio agree applying learnings from previous business challenges is critical. The three offer practical insights on how leaders can effectively manage risks during chaos.  

Q:    What’s important for business owners and executives to keep in mind?

Loffredio: Business leaders are asking “What now?” For our commercial clients, moving forward is a risk management exercise in which they must definitively answer key questions. “What are our priorities?” “What can we do to control risk?” What steps can we take to fortify our organizations for what comes next?” 

Babbitt: There are naysayers and negative statistics in the media. However, during a recent internal executive presentation, Synovus’ CEO Kevin Blair, summed up the action leaders can take in a simple, yet powerful message — “control what you can.” Don’t panic. Just dig in and do what you know needs to be done. For example, shore up your supply chain and inventory, ensure you’re managing costs and pricing, as well as controlling foreign exchange fees.

Q.    What supply chain risks should commercial businesses consider?

Babbitt: Supply chain disruptions aren’t new. Industry professionals need only think back to how they managed COVID impacts on supply and demand in 2020-2021. The same types of risks are present today. The difference is availability of raw goods isn’t the only risk factor. The cost of raw materials and inventory  is at risk due to tariffs.

You’re not only looking at supplier diversification — e.g. “Are there other sources I can tap for inputs and components?” — you must also consider cost implications. For example, would it make sense to find suppliers in countries less impacted by new tariffs? Can you stockpile certain key components before new tariffs take effect? Is it possible to buy from domestic warehouses that have imported excess inventory ahead of new tariffs?

Beisler-Snell: Corporations experienced severe disruptions during the pandemic, which prompted them to create supply chain and risk management backup plans. Our clients are now actively examining options to better manage unpredictability in the supply chain. It’s the right thing to do when there are risks.

Q:     Are there practical steps to help manage the effects of tariffs?

Loffredio: Our clients are paying more attention to invoices to ensure they’re itemized and detailed so that they’re billed tariffs on specified goods only — and not on shipping charges or other add-ons that may be excluded from tariffs.

There are also accounting and bookkeeping considerations. For example, depending on your inventory valuation method, the reported value of your current inventory may be higher. This can affect your cost of goods sold and profit margins, which in turn may influence your pricing strategy.

Q:     What pricing strategies can you recommend?

Loffredio: Pricing is challenging even in the best circumstances. However, with the economic uncertainty around tariffs, we recommend modeling. What you want to evaluate is profitability, margins and working capital. For example, if you absorb 50% of the tariff, what will be the impact on your profitability and overall cash position? Your banker can help you figure this out.

Beisler-Snell: Your banker can also assist with working capital modeling. If your cost of goods increases 20% or 60%, for instance, what would be the implications to your overall cash management strategy? Some companies can absorb more of the costs than others. It all depends on specific scenarios. If your input costs six cents, a 140% tariff increase may not be a deal breaker.

Q:     Are there cost structure implications?

Babbitt: You may be able to adjust what and how you sell. For example, can you easily modify your product without changing its functionality to reclassify under a different harmonized tariff schedule category? Be creative and don’t ignore any possibilities. Examine packaging, distribution and marketing strategies for less expensive options.

Amazon is a notable example of this principle: The company charges varying shipping fees based on purchase amounts and delivery speeds, and they’ve made returns extremely easy. In this way, Amazon is adapting their business model to take advantage of dynamic aspects of the economy.

Q:     How can importers reduce foreign exchange risk?

Beisler-Snell: The dollar has weakened substantially, which is a mixed bag for U.S. consumers and companies. That means two things. U.S. dollar buying power is weaker if companies pay in dollars or purchasing goods overseas in local currency is more expensive because it is now stronger than the dollar. Suppliers in other countries need to convert dollars into their own currency after the sale, which is an extra cost of doing business. However, if the conversion is at the beginning of the sales process, then U.S. importers will spend more to get the same amount of goods. This is why it’s important to implement an effective foreign exchange strategy that includes multicurrency accounts to hedge against currency fluctuations.

Babbitt: Importers should also request dual invoices — one in U.S. dollars and one in the supplier’s local currency. We find that suppliers often add fees to cover foreign exchange risk. These fees can be 5%-15%. The invoice in local currency is often less expensive.

Q:     Do you think the U.S. will experience a recession?

Loffredio: We’ve already experienced negative GDP growth of 0.5% in the first quarter of 2025.6 It’s important, however, to recognize this was largely a function of how GDP is calculated — imports subtract from GDP. In the first quarter, many businesses imported significantly more than normal in anticipation of future higher tariff rates, causing a GDP contraction. Depending on when future tariff changes occur and how U.S. businesses time their purchases, we could see two straight quarters of negative GDP growth — the technical definition of a recession. However, this downturn might not stem from typical declines in consumption or investment, but rather from a temporary spike in imports like we saw in Q1.

Babbitt: Regarding labor, when it was difficult to retain employees during the pandemic, corporations evaluate personnel to ensure they had the right team members. Employers should do this again, so they have the skilled labor needed for efficient production, even in case of a slowdown.

Q:    What are your recommendations for leading during this challenging time?

Babbitt: Focus on your business and what you do well. Remember the bar is how well you compete against others in your industry, not on how well you follow commodity prices, dollar value or interest rate forecasts. There is never perfect certainty, so don’t allow indecision to paralyze your team. Be flexible and open to change. Consider alternative commodities or inputs. An internal “innovation team” tasked with this type of blue-sky brainstorming could produce impressive results.

Loffredio: Be prepared and seek alternatives. Do a deep dive to identify risks and mitigation tactics. Collaborate with partners, including bankers, to ensure you’re applying risk management best practices — especially involving interest rates, commodity price of foreign exchange rates. These are risks you can control via hedging. Also take proactive measures to mitigate potential risks and ensure you have adequate insurance to safeguard against business disruptions or cybersecurity threats.

Beisler-Snell: With one of the world’s largest consumer bases, the U.S. economy has global impact. That gives domestic corporations unique advantages, including the ability to negotiate production, costs and pricing. These are factors you can control. Remember, you don’t have to get it 100% right. Keep it simple and adjust where needed. Ask for help in areas where others are stronger. As bankers, we want to help our clients work through volatility concerns. Remember that your competitors are dealing with the same circumstances. We’ve been through tough times before. We’ll get through them again.

If you’re a leader who’s pondering how to sustain your organization in a rapidly shifting global economy, the answer is relatively simple: Control what you can. In Chesky’s case, part of the action plan was perfecting Airbnb’s core strengths.

Let us help your organization master the supply chain and risk during economic uncertainty.

Synovus can assist your organization with supply chain and risk management, foreign exchange conversions, as well as cash flow modeling. For more information, complete a short form and a Synovus Treasury & Payment Solutions Consultant will contact you with more details. You can also stop by one of our local branches.

Jeffrey Beisler-Snell, Ph.D., is Head of International Banking at Synovus Bank. Beisler-Snell’s expertise includes business relationship management, financial services and cash management.

Michael Babbitt is Head of Synovus’ Trade and Supply Chain Finance Origination Team. Babbitt also co-chairs the BAFT (Bankers Association of Finance and Trade) Regional Bank Committee which collaborates on international trade solutions.

Tom Loffredio is Head of Synovus’ Capital Markets-Derivatives group. Loffredio’s expertise is rates, foreign exchange and commodities hedging.