Articles
July 2014 Risk Newsletter
In the July issue of Risk, cyberrisk is now a key topic of discussion for senior executives and the board,one treasurer recounts her experience when her company endured a cyberbreach, and bitcoin continues to gain legitimacy from regulators.
In the July issue of Risk, cyberrisk is now a key topic of discussion for senior executives and the board,one treasurer recounts her experience when her company endured a cyberbreach, and bitcoin continues to gain legitimacy from regulators.
07/10/2014
AFP Conference Preview: Zachary Karabell on Economic Indicators
Attendees of the FP&A Luncheon at the upcoming 2014 AFP Annual Conference in November will hear from Dr. Zachary Karabell, one of the leading voices on the global economy and international relations. A Harvard Ph.D. and prolific author, Karabell argues that numbers like GDP, inflation and unemployment are no longer adequate indicators of the economy.
Attendees of the FP&A Luncheon at the upcoming 2014 AFP Annual Conference in November will hear from Dr. Zachary Karabell, one of the leading voices on the global economy and international relations. A Harvard Ph.D. and prolific author, Karabell argues that numbers like GDP, inflation and unemployment are no longer adequate indicators of the economy.
07/09/2014
Survey: Rate of U.S. Firms Settling in RMB Nearly Doubles
The number of American businesses using renminbi (RMB) to settle trade has nearly doubled in the past year, and that trend is expected to accelerate over the next 12 months, according to a new survey. Seventeen percent of U.S. business leaders said their companies used RMB to settle trade this year, up from 9 percent in 2013.
The number of American businesses using renminbi (RMB) to settle trade has nearly doubled in the past year, and that trend is expected to accelerate over the next 12 months, according to a new survey. Seventeen percent of U.S. business leaders said their companies used RMB to settle trade this year, up from 9 percent in 2013.
07/09/2014
Large Defined Contribution Plans Lead the Way
Policy debates are taking their defined contribution cues from the successes of plans with $200 million - $1 billion in assets.
07/08/2014
Bitcoin Breakdown: EU Banks Told to Back Off Bitcoin
This week, California Governor Jerry Brown signs a bill legalizing bitcoin, a venture capitalist wins 30,000 Silk Road bitcoins at a U.S. Marshals auction, and Japan decides against regulating bitcoin.
This week, California Governor Jerry Brown signs a bill legalizing bitcoin, a venture capitalist wins 30,000 Silk Road bitcoins at a U.S. Marshals auction, and Japan decides against regulating bitcoin.
07/08/2014
AFP Fraudwatch: Brazilian Fraud Ring Steals $3.75 Billion
This week, fraudsters are believed to have stolen nearly $4 billion by exploiting Brazil’s boleto payment method. Using man-in-the-browser attacks, a fraud ring has compromised nearly 500,000 boleto transactions. Also, anti-spam complaints are already sky-high in Canada even though the nation's new law just took effect last week.
This week, fraudsters are believed to have stolen nearly $4 billion by exploiting Brazil’s boleto payment method. Using man-in-the-browser attacks, a fraud ring has compromised nearly 500,000 boleto transactions. Also, anti-spam complaints are already sky-high in Canada even though the nation's new law just took effect last week.
07/07/2014
This Week in Corporate Finance: U.S. Economy Turns the Corner
The holiday-shortened week surprised the market to the upside as the biggest news of late reinforced the narrative that the U.S. economy has finally turned the corner and is poised for a healthy expansion. That news, of course, was the monthly employment report with a gain of 288k jobs and the unemployment rate dropping to 6.1 percent from 6.3 percent.
The holiday-shortened week surprised the market to the upside as the biggest news of late reinforced the narrative that the U.S. economy has finally turned the corner and is poised for a healthy expansion. That news, of course, was the monthly employment report with a gain of 288k jobs and the unemployment rate dropping to 6.1 percent from 6.3 percent.
07/07/2014
Cyberrisk: The New Frontline of Risk Management
An alarming surge in cyberattack incidences on many of the largest U.S. companies has ushered into corporate boardrooms a new axiom of executive management: cyberrisk. Public companies are facing mounting pressure to bolster cybersecurity protocols and incorporate these surfacing threats within their businesses risk management operations.
An alarming surge in cyberattack incidences on many of the largest U.S. companies has ushered into corporate boardrooms a new axiom of executive management: cyberrisk. Public companies are facing mounting pressure to bolster cybersecurity protocols and incorporate these surfacing threats within their businesses risk management operations.
07/03/2014
Multiemployer Insurance Program Deficit Threatens PBGC's Solvency
The financial position for the single-employer insurance program has improved dramatically, according to the FY 2013 Projections Report, released Monday by the Pension Benefit Guaranty Corp. (PBGC). However, the financial position for the multiemployer insurance program has declined dramatically—which could also spell trouble for single-employer plans and for PBGC itself.
07/03/2014
July 2014 FP&A Newsletter
A new survey of financial planning and analysis professionals reveals widespread frustration with current software and hardware options. Elsewhere this issue, an interview with the new CFO of Booz Allen Hamilton, and a look at the changing FP&A organizational structure.
A new survey of financial planning and analysis professionals reveals widespread frustration with current software and hardware options. Elsewhere this issue, an interview with the new CFO of Booz Allen Hamilton, and a look at the changing FP&A organizational structure.
07/03/2014
Case Study: FP&A Team Upgrades Reporting
Many of the organizations that are upgrading their FP&A functionality are doing so through larger systems designed for complex reporting. One such organization is a Chicago-area healthcare provider that invested in Tier 2 technology after using Word, Excel and PowerPoint tools.
Many of the organizations that are upgrading their FP&A functionality are doing so through larger systems designed for complex reporting. One such organization is a Chicago-area healthcare provider that invested in Tier 2 technology after using Word, Excel and PowerPoint tools.
07/02/2014
It’s Here: FATCA Takes Effect
The Foreign Account Tax Compliance Act (FATCA), the law that imposes a withholding tax on payments from U.S. sources to certain noncompliant foreign entities, is now in effect. Corporate treasury departments have been working over the past few years to ensure that they are FATCA compliant.
The Foreign Account Tax Compliance Act (FATCA), the law that imposes a withholding tax on payments from U.S. sources to certain noncompliant foreign entities, is now in effect. Corporate treasury departments have been working over the past few years to ensure that they are FATCA compliant.
07/01/2014
Corporate Adoption of eBAM Remains Slow
Moving bank account management from a paper-based to an electronic process offers corporate treasurers clear efficiency and visibility benefits. However, widespread corporate adoption of electronic bank account management (eBAM) remains elusive.
Moving bank account management from a paper-based to an electronic process offers corporate treasurers clear efficiency and visibility benefits. However, widespread corporate adoption of electronic bank account management (eBAM) remains elusive.
07/01/2014
AFP Fraudwatch: Treasurer Relives Her Firm’s Cyberbreach
What’s it like from a treasurer’s perspective when your company is hit by hackers? A treasurer recalled what transpired when her company suffered a $125-million cyberbreach.
What’s it like from a treasurer’s perspective when your company is hit by hackers? A treasurer recalled what transpired when her company suffered a $125-million cyberbreach.
06/30/2014
Economist to Canada: Get Over the U.S. and Get Friendly with China
The chief economist for HSBC Bank Canada urged Canadian treasury and finance executives to help their companies become stronger business partners with China and look beyond their traditional relationship with the United States.
The chief economist for HSBC Bank Canada urged Canadian treasury and finance executives to help their companies become stronger business partners with China and look beyond their traditional relationship with the United States.
06/27/2014
FP&A Pros Reluctantly Embrace Technology
Financial planning and analysis professionals widely use Excel and technology systems to do their jobs, but nobody is particularly happy about it. That was the theme survey respondents kept repeating in the 2014 gtnews FP&A Technology Survey, underwritten by WDesk.
Financial planning and analysis professionals widely use Excel and technology systems to do their jobs, but nobody is particularly happy about it. That was the theme survey respondents kept repeating in the 2014 gtnews FP&A Technology Survey, underwritten by WDesk.
06/26/2014
June 2014 Futures in Finance Newsletter
This month, we bring you exclusive coverage of the career-related sessions at the CTC Corporate Treasurers Forum in Chicago and the AFP Canadian Forum in Toronto. Also, one of the first applicants to pass the beta FP&A Certification exam discusses his process in taking the test, the AFP Advisors Network looks at the business skills required to become a successful independent consultant, and more.
This month, we bring you exclusive coverage of the career-related sessions at the CTC Corporate Treasurers Forum in Chicago and the AFP Canadian Forum in Toronto. Also, one of the first applicants to pass the beta FP&A Certification exam discusses his process in taking the test, the AFP Advisors Network looks at the business skills required to become a successful independent consultant, and more.
06/26/2014
Bitcoin Breakdown: Canada First Nation to Regulate Bitcoin
Canada gave royal assent to Bill C-31 last week, becoming the first country to regulate Bitcoin and other virtual currencies. Some nations have weighed in on Bitcoin on a case-by-case basis, including a recent ruling by the Internal Revenue Service, while others, including Japan, are taking a wait-and-see attitude. Not Canada.
Canada gave royal assent to Bill C-31 last week, becoming the first country to regulate Bitcoin and other virtual currencies. Some nations have weighed in on Bitcoin on a case-by-case basis, including a recent ruling by the Internal Revenue Service, while others, including Japan, are taking a wait-and-see attitude. Not Canada.
06/24/2014
AFP Releases New Guide on FP&A Organizational Structures
The AFP Guide to FP&A Organizational Structures: Trends & Best Practices, sponsored by Wdesk, explores the various approaches to an FP&A organizational structure. The guide provides an overview of different companies’ approaches and emerging trends, delves into the pros and cons of each approach, and offers a list of best practices.
The AFP Guide to FP&A Organizational Structures: Trends & Best Practices, sponsored by Wdesk, explores the various approaches to an FP&A organizational structure. The guide provides an overview of different companies’ approaches and emerging trends, delves into the pros and cons of each approach, and offers a list of best practices.
06/24/2014
AFP Reg Report: Cybersecurity, MMFs and Faster Payments
Recent regulatory developments relevant to treasury and finance professionals are reviewed in the AFP Reg Report. In this issue: Cyberthreat data sharing legislation, the SEC MMF reform stalemate and the Fed’s push for a new U.S. payments network.
Recent regulatory developments relevant to treasury and finance professionals are reviewed in the AFP Reg Report. In this issue: Cyberthreat data sharing legislation, the SEC MMF reform stalemate and the Fed’s push for a new U.S. payments network.
06/23/2014
This Week in Corporate Finance: Bright Second Half to 2014?
We sit on the cusp of Dow 17k and S&P 2k and even though are a few bumps on the horizon, we prepare for what looks to be a bright second half of 2014. The Dow recently climbed to a new all-time high of 16,978.02, and the S&P 500 seems to hit a new high every day.
We sit on the cusp of Dow 17k and S&P 2k and even though are a few bumps on the horizon, we prepare for what looks to be a bright second half of 2014. The Dow recently climbed to a new all-time high of 16,978.02, and the S&P 500 seems to hit a new high every day.
06/23/2014
CFO Coach: Are You a Credible Candidate?
Are you credible? It’s a serious question. You might be a credible job candidate, but unless you appear credible you probably aren’t… at least not in the minds of those in a position to hire you.
Are you credible? It’s a serious question. You might be a credible job candidate, but unless you appear credible you probably aren’t… at least not in the minds of those in a position to hire you.
06/20/2014
Corporate Online Banking Systems Due for an Upgrade
A substantial portion of North American banks believe the online banking capabilities they offer their corporate clients are inadequate and those clients agree, according to a new report from Aite Group.
A substantial portion of North American banks believe the online banking capabilities they offer their corporate clients are inadequate and those clients agree, according to a new report from Aite Group.
06/20/2014
June 2014 Payments Newsletter
This month, Payments turns its attention toward fraud and cyber risk, as recent events have caused quite a shakeup. We recap a session at the CTC Corporate Treasurer’s Forum, in which FBI Special Agent Kory Bakken provided an insider’s view of the GameOver Zeus botnet. We also look at the recent security breach at P.F. Chang’s, which is now believed to have compromised up to 7 million cards.
This month, Payments turns its attention toward fraud and cyber risk, as recent events have caused quite a shakeup. We recap a session at the CTC Corporate Treasurer’s Forum, in which FBI Special Agent Kory Bakken provided an insider’s view of the GameOver Zeus botnet. We also look at the recent security breach at P.F. Chang’s, which is now believed to have compromised up to 7 million cards.
06/19/2014
Fed Eyes Exit Fees on Corporate Bonds to Prevent Panics
Fueled by concerns about bond-fund runs after an eventual tightening of interest rates, Federal Reserve Board officials are reportedly discussing charging investors a fee for accessing bond funds, according to the Financial Times.
Fueled by concerns about bond-fund runs after an eventual tightening of interest rates, Federal Reserve Board officials are reportedly discussing charging investors a fee for accessing bond funds, according to the Financial Times.
06/18/2014
AFP Fraudwatch: P.F. Chang’s Cyberbreach Lasted 9 Months
Last week, P.F. Chang’s Chinese Bistro confirmed that it had undergone a massive security breach that compromised customer credit and debit cards. Though details of the breach were initially sparse, it is now being reported that the breach may have compromised up to 2 million cards and lasted for at least nine months.
Last week, P.F. Chang’s Chinese Bistro confirmed that it had undergone a massive security breach that compromised customer credit and debit cards. Though details of the breach were initially sparse, it is now being reported that the breach may have compromised up to 2 million cards and lasted for at least nine months.
06/18/2014
Treasury’s Growing Role Brings Staffing Challenges, Execs Say
As treasury’s role continues to grow, and new responsibilities are added, one unintended consequence is a growing challenge over hiring and retaining staff. Many treasury groups now must develop leaders not only for treasury but for the entire organization.
As treasury’s role continues to grow, and new responsibilities are added, one unintended consequence is a growing challenge over hiring and retaining staff. Many treasury groups now must develop leaders not only for treasury but for the entire organization.
06/18/2014
One Military Leader’s 3 Keys to Great Treasury Leadership
Most leaders understand the importance of focusing on people and inspiring them. Retired Canadian Chief of the Defense Staff Gen. Rick Hillier, who keynoted the seventh annual AFP Canadian Forum last week, believes great leaders need to take those two steps one step further: “Focus on people, inspire them, and draw inspiration from them.”
Most leaders understand the importance of focusing on people and inspiring them. Retired Canadian Chief of the Defense Staff Gen. Rick Hillier, who keynoted the seventh annual AFP Canadian Forum last week, believes great leaders need to take those two steps one step further: “Focus on people, inspire them, and draw inspiration from them.”
06/17/2014
19 Actionable Spreadsheet Tips for FP&A Professionals
If you’re a financial planning and analysis professional who is not a skilled spreadsheet user, you can’t do your job effectively. Here are 19 tips that will make you a faster and better spreadsheet user.
If you’re a financial planning and analysis professional who is not a skilled spreadsheet user, you can’t do your job effectively. Here are 19 tips that will make you a faster and better spreadsheet user.
06/17/2014
Portfolio Reconciliation is the OTC Market’s New Obsession
When new regulatory requirements in Europe and the United States mandated portfolio reconciliation, there was an explosion in the number of market participants looking to comply. In America, only swap dealers and major swap participants are required to comply; however, because of these obligations many corporate end users also are affected.
When new regulatory requirements in Europe and the United States mandated portfolio reconciliation, there was an explosion in the number of market participants looking to comply. In America, only swap dealers and major swap participants are required to comply; however, because of these obligations many corporate end users also are affected.
06/16/2014
Senate Mulls One-Time Tax Repatriation Holiday
Faced with the reality that comprehensive tax reform will not happen this year, key lawmakers are pinning their hopes on a one-time tax repatriation holiday on U.S corporate overseas earnings that could return as much as $2 trillion -- giving treasury and finance executives more cash to deploy.
Faced with the reality that comprehensive tax reform will not happen this year, key lawmakers are pinning their hopes on a one-time tax repatriation holiday on U.S corporate overseas earnings that could return as much as $2 trillion -- giving treasury and finance executives more cash to deploy.
06/12/2014
June 2014 Risk Newsletter
The Foreign Account Tax Compliance Act (FATCA) deadline is less than a month away. Risk managers need to move quickly to comply, or face the consequences. Also this issue, Sun Chemical reveals how it mitigates FX volatility.
The Foreign Account Tax Compliance Act (FATCA) deadline is less than a month away. Risk managers need to move quickly to comply, or face the consequences. Also this issue, Sun Chemical reveals how it mitigates FX volatility.
06/12/2014
Where Should Treasurers Store Bank Account Data?
Recently on AFP’s discussion list, corporate treasury and finance professionals discussed where they store bank account data.
Recently on AFP’s discussion list, corporate treasury and finance professionals discussed where they store bank account data.
06/12/2014
Bottom Line: Quiet Border Crossings
Last month, the United Nations issued a lengthy report on the possible impact of climate change on municipalities and businesses. TD Bank followed with a similar report that focused on Canada. Although the reports were full of doom and gloom, they prompted news articles speculating that a potentially warming climate might benefit Canada in several ways.
Last month, the United Nations issued a lengthy report on the possible impact of climate change on municipalities and businesses. TD Bank followed with a similar report that focused on Canada. Although the reports were full of doom and gloom, they prompted news articles speculating that a potentially warming climate might benefit Canada in several ways.
06/12/2014
One CFO’s Challenge: Post-Recession, More Duties and Demands
Credit unions—nonprofit, member-run financial institutions—felt more economic pressure in Canada during the 2008-09 recession than banks. AFP recently spoke with Rod Ancrum, chief financial officer of Credential Financial in Vancouver, British Columbia, to get his perspective on the financial crisis.
Credit unions—nonprofit, member-run financial institutions—felt more economic pressure in Canada during the 2008-09 recession than banks. AFP recently spoke with Rod Ancrum, chief financial officer of Credential Financial in Vancouver, British Columbia, to get his perspective on the financial crisis.
06/11/2014
AFP Fraudwatch: A Closer Look at GameOver Zeus
Treasury and finance professionals who attended the 10th Annual CTC Corporate Treasurers Forum last week received an in-depth look at GameOver Zeus, the botnet responsible for stealing at least $125 million, including routine $1-million wire transfers. Kory Bakken, Special Agent of the FBI, Chicago Division, discussed how law enforcement brought the botnet down.
Treasury and finance professionals who attended the 10th Annual CTC Corporate Treasurers Forum last week received an in-depth look at GameOver Zeus, the botnet responsible for stealing at least $125 million, including routine $1-million wire transfers. Kory Bakken, Special Agent of the FBI, Chicago Division, discussed how law enforcement brought the botnet down.
06/11/2014
BI & Analytics: Key Tools for FP&A Professionals
The role of the FP&A professional encompasses such activities as planning, forecasting, budgeting, controlling, variance analysis, scenario analysis, communicating goals and results, and decision support. While spreadsheets have been a huge advance and will continue to be a mainstay tool in the FP&A toolkit, modern BI and analytics represent the next generation of FP&A tools.
The role of the FP&A professional encompasses such activities as planning, forecasting, budgeting, controlling, variance analysis, scenario analysis, communicating goals and results, and decision support. While spreadsheets have been a huge advance and will continue to be a mainstay tool in the FP&A toolkit, modern BI and analytics represent the next generation of FP&A tools.
06/10/2014
Treasury, Finance Get Proactive About Climate Change—Or Else
Treasury and finance professionals who focus less on short-term earnings and more on big environmental and social challenges will be the ones who come out ahead in the long run, argued author Andrew Winston, opening keynote speaker of the 10th Annual CTC Corporate Treasurers Forum.
Treasury and finance professionals who focus less on short-term earnings and more on big environmental and social challenges will be the ones who come out ahead in the long run, argued author Andrew Winston, opening keynote speaker of the 10th Annual CTC Corporate Treasurers Forum.
06/10/2014
Treasury: A Change Agent for the Organization
The concept of treasury functioning as a change agent within the organization was the theme of last week’s 10th annual CTC Corporate Treasurers Forum. With so many treasurers taking on additional responsibilities, it’s no surprise they are seen increasingly as change agents, and this shift was the focus of an opening panel discussion at the forum.
The concept of treasury functioning as a change agent within the organization was the theme of last week’s 10th annual CTC Corporate Treasurers Forum. With so many treasurers taking on additional responsibilities, it’s no surprise they are seen increasingly as change agents, and this shift was the focus of an opening panel discussion at the forum.
06/09/2014
June 2014 FP&A Newsletter
AFP is pleased to officially launch its Certified Corporate Financial Planning & Analysis Professional (“FP&A”) credential, the first accreditation specifically for FP&A professionals. Also this issue, read how Maersk Drilling USA’s finance team transformed themselves into business partners, and how finance executives find good employees.
AFP is pleased to officially launch its Certified Corporate Financial Planning & Analysis Professional (“FP&A”) credential, the first accreditation specifically for FP&A professionals. Also this issue, read how Maersk Drilling USA’s finance team transformed themselves into business partners, and how finance executives find good employees.
06/05/2014
