Two dates have become critical in the face of Friday’s announcement from the Financial Conduct Authority (FCA). The following are the dates that panel bank submissions for all Libor settings will cease, after which representative Libor rates will no longer be available.
Finance is a constantly changing, unpredictable environment. It’s crucial that financial planning and analysis (FP&A) professionals stay on top of the latest trends in the industry, and one way to ensure they perform at their peak is to gather fresh and innovative ideas.
While remote collaboration and digital learning can be successful in the COVID-19 era, it can also be challenging to understand tone, body language and other non-verbal cues that provide meaningful context to communication. Even before the pandemic, virtual communication was prevalent with emails and conference calls.
All organizations have some amount of resilience, the ability to mobilize resources to absorb negative impacts. Forward-thinking organizations will plan their resilience in advance, perhaps even making investments in “contingent capabilities,” responses that activate only in specific circumstances to carry the organization through the risk impact and back to normal performance.
As cybercrime has increased in volume and intensity, many organizations have come to rely on cybersecurity scorecards to help evaluate the security preparedness of both themselves and the third-party firms they have relations with. Obviously, that includes banks and financial institutions.
Spreading its coverage, the RTP network — the real-time payment system from The Clearing House (TCH) — now reaches 57% of U.S. demand-deposit accounts (DDAs), including those at regional and community banks, at a time when immediate payments have become increasingly important.
AFP recently caught up with John Sanchez, communication consultant with The FPA Group, and upcoming instructor of the AFP FinNext 2021 Virtual pre-conference workshop, Communicating Effectively in an Age of Disruption, to get his take on the current state of communication in the finance profession — and what we can do to improve.
The Association for Financial Professionals’ (AFP) director of Treasury and Payments Services, Tom Hunt, recently participated in the Financial Stability Board’s (FSB) Virtual Roundtable on Libor Transition and Benchmark Reforms. In attendance were 58 finance executives representing approximately 15 countries and the European Union. The president of the FSB, John Williams, CEO of the NY Fed, and Andrew Bailey, governor, Bank of England, ran the roundtable. The AFP was the largest U.S. treasury association in attendance.
Scenario planning addresses the key question: What do we do? It enables you to respond to changes that cause your existing plans and forecast to be radically revised in order to deal with a new and different operating environment requiring rapid response. Examples of this could include events that radically change the demand for services, such as the COVID-19 pandemic, or the emergence of new business models that create disruption such as Airbnb, Lyft, or Uber.
Last year, AFP announced the formation of its APAC FP&A Advisory Council (FPAAC). The networking and advisory group meets three to four times a year to discuss best practices, common challenges and innovative initiatives in the Asia-Pacific region. We’ll be profiling individual members of the council every month. This month we spoke with Keyur Shah, senior finance director, FP&A COE, APAC, Johnson & Johnson.
Treasury professionals have been told for years that the keys to career success are to know the business, to embrace technology, and to master so-called soft, or people, skills. But an entire new set of skills has been added to the must-have list, all centered on data management, data analytics and software automation.
In its ongoing effort to facilitate the transition to a new benchmark for floating-rate financial transactions, the Alternative Reference Rates committee (ARRC) recently recommended a method for using the secured overnight funding rate (SOFR) for intercompany loans. Treasury executives should discuss the language and how to address the issue most effectively with colleagues across their companies’ finance departments, if they haven’t already.
After receiving enthusiastic responses to last year's same-day ACH limit increase, the National Automated Clearing House Association (Nacha) has proposed layering in major limit increases over the next three years that would enable corporates to speed up a wide variety of debits and credits.
“Do not hesitate to ask your banks for information about their fees — and even ways to lower them. They’ll respect you for it.” This was the advice imparted by experts leading an AFP 2020 Virtual Experience session addressing strategies to ensure fees are competitive and how to reduce them.
Support for Libor was set to end after 2021, but in November, the benchmark’s administrator proposed an 18-month extension to complete the array of complexities to transition legacy transactions. While the extension will give market participants more time to transition legacy transactions to a replacement reference rate, regulators still want new loans to reference a replacement starting in 2021, requiring significant business and operational issues to be addressed while many corporates are still in the early stages of the transition.
FP&A’s response to a world of changing information and uncertainty is to maintain multiple points of view. We need to incorporate intelligence quickly (rapid reforecasting), remain focused on long-term strategy, and stretch the organizational mindset for the possibility of varied future outcomes, aka scenario planning.
After the AFP FinNext Virtual Conference Planning Task Force met in January to select the sessions, a few of the members sat back to reflect on the larger trends evident in the multitudes of proposals. What they found were three core themes that reinforced the need for finance to hold multiple points of view simultaneously.
As of January 25, the acronym FPAC will officially be used to denote the Association for Financial Professional’s Corporate Financial Planning and Analysis Professional credential.
We are pleased to announce the members of AFP’s 2021 Financial Planning and Analysis (FP&A) Advisory Council. These members represent a broad cross section of industries, size, and ownership structure, and are selected based on their contributions to the FP&A practice, expertise in specific areas, and desire to contribute to the advancement of their peers.
Our last article discussed model governance and risk management, the background to successful development. If we think about building a model as a product development process, we can apply best practices from decades of research and the current trends.
Writing about career prospects for 2020 seems out of place at a time when professionals are worried about their jobs as much as companies are distressed about staying in business. But as history has shown us – there is a cycle to everything – and this period of relentless challenges will eventually come to an end, and professionals and businesses will begin anew.
Unlike a typical financial downturn, the impact of COVID-19 pandemic has been far more difficult to predict. In this environment, with traditional business models and old market assumptions no longer working, companies are turning to financial planning and analysis (FP&A) professionals to help them navigate the turbulent waters and prepare for the aftermath. But are they ready?
With the ISO 20022 standard now seeing widespread adoption, financial messaging has never been more relevant in cross-border transactions.
AFP is proud to introduce the new Chairman and Vice Chairmen of its Board of Directors, as well as some new members.
During the AFP 2020 Insurance Industry Roundtable, sponsored by Fifth Third Bank, treasury professionals discussed their response plans to the COVID-19 pandemic.
Mat McBride, finance leader for Microsoft’s Cloud and Gross Margin, recently sat down with us for a virtual conversation. We asked him about the challenges currently faced by CFOs, CPOs, and other financial decision makers, the concerns of customers and investors, and building resiliency.
While SOFR is the chosen successor to Libor in the United States, other rates have emerged as potential alternatives. The latest AFP Treasury in Practice Guide, underwritten by Kyriba, takes a look at Ameribor.
Rob Trippe, M&A, corporate finance advisor and analyst for Corporate Finance Consulting & Advisory, discusses the role that models play and the challenges that they present to FP&A departments.
Peggy Ang, FP&A Leader for APAC for National Instruments and a member of AFP's APAC FP&A Advisory Council, discusses the ways in which finance has changed as her career has progressed.
AFP's new Payments Guide features an in-depth look at a new plan by the G20 and the Financial Stability Board (FSB) to strengthen and modernize the cross-border payments infrastructure.
During a recent webinar, treasury practitioners based in the Asia-Pacific (APAC) region discussed the value of earning the Certified Treasury Professional (CTP) designation.
We are already in the midst of a talent war. Nowhere is this more evident than in the role of financial planning and analysis (FP&A).
Martha Sierra of the British Council and AFP's APAC FP&A Advisory Council has handled FP&A duties in multiple countries, taking on unique challenges with each new role.
The 2020 AFP FP&A Survey, underwritten by Workday, Inc., found that demand for forecasting services increased in 2020 and is expected to remain at an elevated level.
The 2020 FP&A survey examines FP&A’s abilities by focusing on the quality and accessibility of the data, and the tools available to examine and find meaning in that data. Here are a few highlights.
Model governance is a set of activities, policies and procedures which formalize model and model risk management activities for implementation.
The Federal Reserve, the FDIC and OCC issued a joint statement urging banks to cease entering into new contracts that use U.S. dollar Libor as a reference rate.
U.S. businesses finally appear ready to shed paper checks and embrace digital payments for business-to-business (B2B) transactions, according to the 2020 AFP Survey, sponsored by Truist.
The 2020 AFP Asia-Pacific Treasury Management Handbook, sponsored by Kyriba, explores the ways in which treasury interacts with a range of third-party organizations, within a regulatory framework set by a number of legislators and regulators.
Every year, FP&A goes through the exercise of preparing a plan for the upcoming year. And then it all changes. What is a planning function to do in the wake of this? Be ready for everything.