Articles
February 2014 Risk Newsletter
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.
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.
02/13/2014
EU’s Central Bank Hints at Negative Deposit Rate
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.
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.
02/12/2014
Treasurers have New Tools to Predict Credit Risk
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.
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.
02/12/2014
Strategies for Managing a Weaker Canadian Dollar
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.
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.
02/12/2014
AFP Fraudwatch: PayPal President’s EMV Card Skimmed
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.
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.
02/11/2014
A Closer Look at Proposed Lease Accounting Changes
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.
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.
02/11/2014
2014 Outlook: Corporates to Focus on Technology and Payments
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.
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.
02/10/2014
This Week in Corporate Finance: Positive, Albeit Slow Growth
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.
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.
02/10/2014
Survey: Treasurers Are Confused and Unprepared for EMIR Rule
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.
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.
02/07/2014
AFP Reg Report: A Renewed Push for Cybersecurity Legislation
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.
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.
02/06/2014
Leadership in Treasury: John Tus, Treasurer of Honeywell
A candid conversation about leadership and management with John Tus, treasurer of Honeywell International.
A candid conversation about leadership and management with John Tus, treasurer of Honeywell International.
02/06/2014
Fed Moving Forward with Updated Payments System
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.
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.
02/06/2014
February 2014 FP&A Newsletter
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
02/06/2014
FX Risk Management Moves toward Decentralization
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.
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.
02/06/2014
Bitcoin Breakdown: No FinCEN Regs for Bitcoin Miners, Investors
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.
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.
02/05/2014
CTC Releases New Guide on Attracting and Retaining Talent
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.
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.
02/05/2014
Washington Calls for Tougher Cybersecurity Standards
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.
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.
02/04/2014
Preparing for the FP&A Exam: Hands-On Experience Is a Must
Think you can take the examination to be a Certified Corporate FP&A professional without using spreadsheets? Think again.
Think you can take the examination to be a Certified Corporate FP&A professional without using spreadsheets? Think again.
02/04/2014
FP&A: A Growing Profession
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.
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.
02/04/2014
FP&A Club Update: One Year Later
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.
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.
02/04/2014
Emerging Market Volatility Paints a Murky Picture for 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.
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.
02/03/2014
AFP Reg Report: 2014 Begins with a Flurry of Activity
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.
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.
02/03/2014
Four Ways to Execute FX Spot Transactions
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.
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.
01/30/2014
January 2014 Futures in Finance
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.
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.
01/30/2014
Fed Holds Steady on Taper as Bernanke Era Ends
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.
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.
01/29/2014
AFP Fraudwatch: Retail Cybersecurity Woes Continue
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.
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.
01/28/2014
New SEC Commissioner Takes Aim at FSOC on MMF Regulation
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.
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.
01/28/2014
CFO Coach: A Good Third-Party Assessment
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.
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.
01/28/2014
This Week in Corporate Finance: The Flight to Quality Resumes
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.
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.
01/27/2014
Cash Reserves Hold Steady in 4Q13, but Investment Increases
U.S. business confidence remained even in the final quarter of 2013, with organizations holding steady amounts of cash and investing those balances slightly more aggressively, according to the January 2014 AFP Corporate Cash Indicators™ (AFP CCI), underwritten by State Street Global Advisors.
U.S. business confidence remained even in the final quarter of 2013, with organizations holding steady amounts of cash and investing those balances slightly more aggressively, according to the January 2014 AFP Corporate Cash Indicators™ (AFP CCI), underwritten by State Street Global Advisors.
01/27/2014
Bitcoin Breakdown: JPMorgan’s Dimon Predicts Bitcoin’s End
JPMorgan Chase CEO Jamie Dimon denounced Bitcoin earlier this week, and even predicted its demise. "It's a terrible store of value," he said.
01/24/2014
Canada Ranks Second on List of Best Business Environments
Canada has leaped to the No. 2 spot on a world ranking of the best business environments, according to a new survey by Bloomberg. Canada’s place on the 2014 list is likely due in large part to its acclaimed banking system.
Canada has leaped to the No. 2 spot on a world ranking of the best business environments, according to a new survey by Bloomberg. Canada’s place on the 2014 list is likely due in large part to its acclaimed banking system.
01/24/2014
RMB Cracks Top 10 Payments Currencies as Corporate Adoption Grows
The Chinese renminbi was one of the top 10 most-used currencies for payments in both November and December 2013, according to SWIFT. It currently resides in eighth place.
The Chinese renminbi was one of the top 10 most-used currencies for payments in both November and December 2013, according to SWIFT. It currently resides in eighth place.
01/23/2014
January 2014 Payments Newsletter
This month, we take a look at AFP’s new Payments Decision Guide, which focuses on developing a payables strategy. The guide, underwritten by Fifth Third Bank, explains the goals and drivers of a payables policy, and then advises corporate practitioners on the best ways to create and implement it. Also this month, we attempt to determine the catalyst that will finally cause corporates to leave checks behind and use electronic payments for business-to-business transactions.
This month, we take a look at AFP’s new Payments Decision Guide, which focuses on developing a payables strategy. The guide, underwritten by Fifth Third Bank, explains the goals and drivers of a payables policy, and then advises corporate practitioners on the best ways to create and implement it. Also this month, we attempt to determine the catalyst that will finally cause corporates to leave checks behind and use electronic payments for business-to-business transactions.
01/23/2014
Study: Hoarded Corporate Cash Threatening Global Recovery
The global economic recovery could hit a roadblock thanks to a few hundred corporations hoarding copious amounts of cash, according to a new study from Deloitte. Fully 32 percent of the world’s top nonfinancial companies are stockpiling 82 percent of their total cash holdings.
The global economic recovery could hit a roadblock thanks to a few hundred corporations hoarding copious amounts of cash, according to a new study from Deloitte. Fully 32 percent of the world’s top nonfinancial companies are stockpiling 82 percent of their total cash holdings.
01/23/2014
FinCEN Issues FBAR Filing Extension
The Financial Crimes Enforcement Network (FinCEN) announced a filing extension for Report of Foreign Bank and Financial Accounts (FBAR) to June 30, 2015. This extends a prior extension notice from December 2012 for Form TD 90-22.1, applied to “certain individuals with signature authority over but no financial interest in one or more foreign financial accounts.”
The Financial Crimes Enforcement Network (FinCEN) announced a filing extension for Report of Foreign Bank and Financial Accounts (FBAR) to June 30, 2015. This extends a prior extension notice from December 2012 for Form TD 90-22.1, applied to “certain individuals with signature authority over but no financial interest in one or more foreign financial accounts.”
01/22/2014
AFP Survey: Finance Execs Focused on Competitors, Customers
Despite a slowly improving economy, finance executives haven’t relaxed when it comes to risk management because a new set of threats is keeping them up at night, according to the The 2014 AFP Risk Survey, produced in conjunction with Oliver Wyman. U.S. corporations expect earnings uncertainty to continue this year and they are focused on how potential political/regulatory risks and competition could potentially destabilize corporate performance.
Despite a slowly improving economy, finance executives haven’t relaxed when it comes to risk management because a new set of threats is keeping them up at night, according to the The 2014 AFP Risk Survey, produced in conjunction with Oliver Wyman. U.S. corporations expect earnings uncertainty to continue this year and they are focused on how potential political/regulatory risks and competition could potentially destabilize corporate performance.
01/22/2014
Report: More Financial Risk Management Needed
The increased pressure of market volatility following the financial crisis led to a growing awareness of the need for expert insight to adequately managing financial risk beyond traditional approaches. But a recent study of 1,075 publicly listed corporations found a pervasive lack of financial risk management within certain asset classes and industries.
The increased pressure of market volatility following the financial crisis led to a growing awareness of the need for expert insight to adequately managing financial risk beyond traditional approaches. But a recent study of 1,075 publicly listed corporations found a pervasive lack of financial risk management within certain asset classes and industries.
01/21/2014
Bottom Line: Growth of a New Currency
While the price of the virtual currency Bitcoin hasn’t reached that height, its rapid increase has caused a few central bankers to remark on its bubble-like rise. A Dutch central banker was recently quoted as saying, “This is worse than the tulip mania.”
While the price of the virtual currency Bitcoin hasn’t reached that height, its rapid increase has caused a few central bankers to remark on its bubble-like rise. A Dutch central banker was recently quoted as saying, “This is worse than the tulip mania.”
01/21/2014
Target Breach Prompts Call for Faster EMV Migration
The massive retail breach that occurred over the holidays has prompted some retailers—including the National Retail Federation and the CEO of Target, the main victim in the breach—to call for the U.S. to speed up its migration to EMV chip cards.
The massive retail breach that occurred over the holidays has prompted some retailers—including the National Retail Federation and the CEO of Target, the main victim in the breach—to call for the U.S. to speed up its migration to EMV chip cards.
01/20/2014
Collaborate with your treasury and finance peers on the go. No matter where you are in the world you can stay connected to your professional community.
Download the Collaborate App
Download the Collaborate App