Today’s fractured geopolitical environment threatens to undermine corporates' ability to deal with global issues. Success will require flexibility, foresight and fresh thinking about risk management.
In the wake of the massive Target breach, retailers and policymakers are calling for faster migration to EMV chip technology at the point of sale. But just how safe is EMV? Would chip technology have prevented Target customers’ data from being compromised?
A candid conversation about leadership and management with Cris Barros, treasurer of The Mosaic Company.
ChildFund International has many operations in regions of the world that are extremely remote, or in places where the indigenous cultures prefer to be unbanked. The organization has found that in developing countries, people frequently resist well-established commercial banks, but readily embrace newer technologies such as mobile money.
Here on the East Coast of the United States, we continue to dig out from our worst winter storm in four years. For the economy this week, the general consensus is we continue to improve, although at a slower than desired pace. The stock market was up, U.S. Treasury prices were down, and oil and gold were up with new price handles.
In her first public appearance on Capitol Hill as confirmed head of the Federal Reserve Board, Chair Janet Yellen spoke before the House Financial Services Committee. Delivering the Fed’s Semiannual Monetary Policy Report to Congress, Yellen took questions from all committee members, lasting just short of six hours—an arrangement she agreed on beforehand.
With companies sitting on vast reserves of cash, capital allocation decisions can have a major impact on individual company performances, as well as overall economic growth. AFP has released a new guide that explores how firms calculate their capital cost and how FP&A professionals can partner with senior management in making important capital allocation decisions.
Some, but not all, companies following accounting guidelines from the International Accounting Standards Board (IASB) can now account for hedges more accurately—and indications point to U.S. hedge-accounting standards converging on a similar approach.
AFP members are thinking of risks differently. The 2014 AFP Risk Survey, underwritten by Oliver Wyman and summarized in this issue, shows that businesses are worrying more about new competitors and the changing tastes of customers than they are about the global economy
The National Institute of Standards and Technology (NIST) finalized its final cybersecurity framework for the critical infrastructure community. The voluntary guide is intended to make financial, energy, healthcare and other critical industries more resistant to cyberattacks.
Recently on AFP’s discussion list corporate treasury and finance professionals discussed best practices for check language.
There’s plenty of currency-related guidance in this issue, including a look at FX risk management in a decentralized landscape and advice on managing the falling Canadian dollar. A new AFP survey examines the intersection of risk management and financial planning and analysis, while credit stress forecasts providers have new products and services for treasury and finance. Plus, there’s news on FASB, IASB and EMIR.
The financial crisis made analyzing credit risk a priority, prompting a range of financial-intelligence vendors to provide analytical default-probability services that initially were aimed more at financial institutions and are now available to corporates.
Over the latter part of the past year, the Canadian dollar sank about 6 percent against the United States dollar. The declining CAD reflects a shift in monetary policy, as a new central bank head took over with a more dovish outlook.
The European Central Bank (ECB) is looking “very seriously” at negative interest rates on overnight bank deposits as a policy option. Should the option be exercised, don’t “expect too much of it,” said Benoît Cœuré, who serves as a member of the ECB’s Executive Board.
This week, PayPal President David Marcus became the victim of card fraud at the point-of-sale. However, he was using a chip card—so what happened? Also, new revelations about the Target breach, as well as what the breach is costing credit unions.
In 2013, the Financial Accounting Standards board (FASB) and the International Accounting Standards Board (IASB) issued a joint accounting proposal that would significantly change how companies account for property and equipment leases. The primary reason is to provide greater transparency and comparability between financial statements.
AFP recently received predictions from economists at financial institutions and financial services firms on the domestic economy. In Part 2 of our discussion, we asked what they were hearing from their corporate clients. Here’s what corporate treasury and finance executives want from their banks and service providers in 2014.
Welcome to February. While we were hoping the latest employment report would provide us with a measure of clarity as to the strength of the U.S. economy, unfortunately the report only muddied the waters. We continue the same-old/same-old narrative: a positively growing economy, albeit slowly.
The European Market Infrastructure Regulation for swap reporting takes effect February 12, but a new poll found that 52 percent of corporates were unsure if they were obligated to report under EMIR.
Point-of-sale malware that infiltrated the payment systems of some of the largest U.S. retailers over the recent holiday—notably Target, which saw over 110 million of their customers’ information compromised—has revived the drive for a federal cybersecurity law.
A candid conversation about leadership and management with John Tus, treasurer of Honeywell International.
The Federal Reserve praised responses to a recent consultation paper on the U.S. payments system and is taking steps towards updating the infrastructure as a whole. Industry feedback is being used to shape the Fed’s future improvement initiatives, to be communicated in another paper due in the second half of 2014.
February 2014 FP&A Newsletter Staff Writers 2014-02-06 This issue of FP&A reveals the results of a new survey of the intersection between financial planning and analysis and risk management. Organizations benefit from increased integration, the AFP survey found, but there’s plenty more for F
The ramifications of a changing financial landscape for treasury and financial professionals that are tasked with mitigating the risks associated with transactions denominated in foreign currencies will warrant a more holistic approach, a robust risk-management strategy effective in smoothing over volatility.
Some users of Bitcoin and other virtual currencies are exempt from registering with the government and complying with certain money-laundering regulations, according to two new rulings last week from the Financial Crimes Enforcement Network (FinCEN). The rulings come amid calls from other officials to strictly regulate Bitcoin and virtual currencies.
Recruiting and developing top talent has never been more important. Nowhere is the challenge more pressing than in treasury groups, according to the treasurers interviewed for the new CTC Guide, Leadership in Treasury: Attracting and Retaining Talent, underwritten by Reval.
Two Senate hearings this week focused on the multiple data breaches that have erupted across the retail sector. Politicians, regulators, law enforcement agencies, retailers and banks agree that stronger standards are needed to prevent future incidents. Any new legislation or regulations arising in the wake of the retail data breaches likely will hit all corporates in the form of increased spending on cybersecurity compliance.
Think you can take the examination to be a Certified Corporate FP&A professional without using spreadsheets? Think again.
This month, financial planning and analysis professionals from all around the world are testing their knowledge in the first global exam for the Association for Financial Professionals’ FP&A Certification. Brian Kalish, AFP’s FP&A practice lead, has been meeting with corporate practitioners for the past two years about FP&A and has found no shortage of interest in the field and the upcoming certification.
Launched a year ago in London, the FP&A Club has seen major developments in Europe and the Middle East. Larysa Melnychuk, founder of the London club, recently spoke with gtnews about the progress the club has made over the past year, and where it is headed in 2014.
The year has got off to a shaky start for several of the world’s emerging market economies. Turkey, India and South Africa all raised interest rates last week to counter their weakening currencies.
Recent regulatory developments relevant to treasury and finance professionals are reviewed in the AFP Reg Report. In this issue: monetary policy, payments risk, ACH, borrowing costs, swap data recordkeeping, EMIR, corporate lending, money-market fund reform, FBAR, corporate tax reform, and data security.
Spot trades are transactions that are settled “on the spot,” as opposed to a pre-determined future date. This method is utilized by many smaller firms who engage in FX transactions and whose smaller volume renders other options too costly or difficult to implement.
This month, we cover AFP's recent trip to the Middle East, with the goal of promoting the FP&A certification to global markets. AFP met with finance practitioners in Dubai and Saudi Arabi. In other AFP news, the recent released Crucial Conversations in Finance Survey (a collaborative effort with VitalSmarts) features 101 insights from financial professionals describing how they handled sensitive or critical situations at their organizations. Also this month, the AFP Advisors Network provides advice for aspiring consultants as well as social media tips for building your professional brand, the CFO Coach makes the case for neutral third-party assessments, and we profile AFP Board Member Adrienne Urban.
The Federal Reserve issued the next wave of reductions in its bond-buying program, reducing monthly asset purchases to $65 billion. On the back of weak December U.S. job numbers, a reactive jolt from emerging markets to the initial taper and shaky currency markets, the Fed’s decision to support continued reduction sets the tone for Fed sensitivity to short-term market fluctuations.
This week, Michaels investigates a possible data breach, Neiman Marcus admits that 1.1 million of its customers may have been compromised, and Target faces scrutiny from Congress.
While not structurally risk susceptible, money market funds continue to pose systemic vulnerabilities through the short-term liquidity they afford to banks, says recently-appointed SEC Commissioner Michael Piwowar.
Every sport has a coach that serves as a neutral third-party assessor who can see what the player on the field cannot see. It is the same for a job search candidate. A good, neutral third-party assessment is an excellent idea if you truly want to be effective.
Just when we started thinking it might be safe to go back into the water, we can begin to discern the opening notes from the movie “Jaws” drifting in from the horizon. We experienced a classic flight-to-quality as investors dumped stocks around the world, and plowed that money into ultra-safe government securities.