Treasury and finance executives whose companies do business in Russia and the Ukraine are seeing the effects of the mounting crisis on their bottom lines. The ruble’s exchange rate has plummeted, corporate borrowing is more expensive, and sanctions against individual banks are complicating cross-border payments.
Six individuals were arrested last week in connection with an international cybercrime ring that hacked more than 1,600 customer accounts. What’s different in this case is that the company detected the cybercriminals first instead of receiving the news of the hack, as usually happens, and then it alerted law enforcement.
Lisa Joublanc, CCM, CFA, Vice President and Treasurer for Global Payments, and Mary Guzman, Senior Vice President and E&O Practice Leader, McGriff, Seibels & Williams, discuss what treasurers need to consider when selecting cyber insurance coverage. They also provide a look at the 2012 cyber breach incurred by Global Payments.
Coinciding with the SEC’s money market mutual fund ruling for corporations, the AFP Corporate Cash Indicators ® (AFP CCI), underwritten by State Street Global Advisors, revealed that U.S. businesses built cash reserves at a faster pace during the second quarter of 2014 and invested those assets more conservatively. But the burst in cash accumulation is expected to be short lived.
The market had the feeling of being on a teeter-totter this past week, as general positive feelings about the U.S. economy were counter-balanced by geopolitical concerns, specifically in Ukraine and Gaza. Overseas, the flight to safety continued.
The Pension Benefit Guarantee Corporation (PBGC) recently announced a six-month moratorium on its enforcement of ERISA section 4062(e). The moratorium, scheduled to last till the end of 2014, will be used to review the application of 4062(e).
Vanguard’s Money Movement Unit, which initiates billions in payments on a daily basis, was too dependent on manual processes and legacy systems that couldn’t handle the workload. Migrating to a treasury workstation and utilizing SWIFT enabled the company to streamline its payments process and reduce risk.
Tom Hunt, CTP, Director of Treasury Services for the Association for Financial Professionals, lists 10 steps every treasurer should take to prepare for the new money market fund rules approved today by the Securities and Exchange Commission.
Todd Peterson, FP&A, Senior Financial Analyst for AARP, discusses why he wanted to be part of the first class of Certified Corporate Financial Planning & Analysis (FP&A) professionals.
This month, we bring you two exclusive video interviews with members of our inaugural class of Certified Corporate Financial Planning & Analysis (FP&A) professionals. Travis Lockhart of IMC and Todd Peterson of AARP discuss why they were interested in taking the beta exam and how they prepared for it. Also this month, we have the second installment in the AFP Advisors Network's series on the three core competencies of independent consulting.
In a 3-2 vote, the Securities and Exchange Commission passed a rule that will force institutional prime money market funds (MMFs) to move from a stable $1 per share net asset value (NAV) to a floating NAV. Additionally, the new rule also allows fund boards to impose two safeguards to stave off runs: liquidity fees of up to 2 percent on redemptions, and temporary suspensions of redemptions, or “gates.”
U.S. Treasury Secretary Jacob Lew is calling on the financial services sector to improve its efforts to better protect consumer data and strengthen defenses against cyberattacks, thefts and disruptions. He also called for legislation that advances public-private sector information sharing.
Greg Baldwin, Deputy Treasurer for Johnson County, Kansas, tells how his office streamlined its collections process.
After seven years of debate, one round of rules changes in 2010, followed by three more years arguing over yet another round of regulation, money market funds may get their final changes this Wednesday.
A downed commercial airliner in the Ukraine and yet another flare up of violence in the Middle East has caused a worldwide flight to safety. These events probably will not have much of a long-term effect on the strengthening U.S. economy. But as we have witnessed in recent years past, small, distant and seemingly unconnected events can have quite an unanticipated impact.
The New York Department of Financial Services (DFS) has released the details of its proposed BitLicense regulatory framework. If passed, New York would become the first state in the U.S. to directly regulate virtual currencies.
Today’s CFO superstar is involved in every aspect of the business, solving problems across all aspects of the organization. At the core of the problem solving is finance and numbers, but it is now intricately woven with operations and the need for a broader base of business and finance acumen.
Travis Lockhart, FP&A, CTP, Manager of Financial Planning & Analysis, IMC, discusses his experience preparing for and taking the Certified Corporate Financial Planning & Analysis (FP&A) Professional exam.
This month saw the Foreign Account Tax Compliance Act (FATCA), which imposes a withholding tax on payments from U.S. sources to certain noncompliant foreign entities, finally take effect. Also this month, we look at cyber risk, which has become a top priority for companies.
The total value of digital payments is on course to reach $2.5 trillion this year, and the figure is expected to rise to $4.7 trillion by 2019. The biggest contributing factors to the rise are expected to be increased remote physical goods purchases and a surge in activity in emerging markets.
The majority of corporate treasurers and CFOs who responded to the 2014 AFP Liquidity Survey, underwritten by RBS Citizens, indicated that their organizations would significantly alter their investment policies if money market funds receive an overhaul. They may need to start making those changes as early as next week.
Three Chinese banks have temporarily suspended a yuan remittance service over suspicion of money laundering. China Central Television (CCTV) has accused Bank of China (BOC) of allowing wealthy Chinese citizens to circumvent the country’s controls on cross-border transfers by exploiting an obscure program called You Hui Tong.
In the latest entry to the Leadership in Treasury series, Dana Laidhold, treasurer for The Carlyle Group, tells why she switched from audit to treasury.
Corporate treasurers and CFOs continue to build their organizations’ cash reserves in response to improved operating cash flows, according to the 2014 AFP Liquidity Survey, underwritten by RBS Citizens. 36 percent of companies reported rising cash reserves in the last year.
The Federal Reserve has indicated that will end its five-year-old quantitative easing (QE) program this October. Officials have been steadily winding down their monthly purchases of Treasury bonds and mortgage-backed securities since January, but this is the first time an end date has been presented.
Despite long-running bipartisan support, the Export-Import Bank of the United States might be on the verge of closing. The bank’s charter expires at the end of September, and for the first time ever Congress might not renew it. Should treasury and finance executives be worried?
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.
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.
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.
Policy debates are taking their defined contribution cues from the successes of plans with $200 million - $1 billion in assets.
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, 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.
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.
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.
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.
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.
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.
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.
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.
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.