NeuGroup members discuss benefits, challenges and process as treasury promotes diversity and inclusion. Many treasury teams at multinational corporations strive to include firms owned by women, people of color and disabled veterans when selling debt, buying back stock or issuing commercial paper. At a recent NeuGroup meeting focusing on capital markets, members shared their insights on the process of including minority and diversity firms in various transactions.Formalize the process. The member who kicked off the discussion described her company’s path…
More cash and falling interest rates have some corporates weighing a return to prime funds.Many treasury teams have plenty of cash to invest but not many places to park it that offer attractive yields. That has some of them debating whether, when and how to add risk to their portfolios while preserving capital and liquidity. The challenge is figuring out “how to optimize cash in a very short portfolio,” as one member put it. Here’s some of what others said this…
May 21, 2020
Aligning Risks to Inculcate Risk Awareness
How one company’s ERM team is raising risk awareness and its own profile by organizing the firm’s sprawling risks.Sometimes the best way to add importance to your function is to look to the top. To management, that is. This was what one company’s enterprise risk management team did to accomplish two things: help organize the company’s risks and add a level of seriousness to the function itself.The head of this ERM team recently described, at NeuGroup’s Corporate ERM Group’s annual meeting,…
The COVID-19 crisis has reduced exposures to a point where for many companies those hedges may not be needed anymore. Time to unwind? If you’re planning on unwinding a cash-flow hedge, there are many things to think about before you do. Determining when and why to unwind, as well as how to view the transaction’s cost benefits, and what counterparty to use, are just a few of the factors to consider. This was the topic of discussion among NeuGroup FX Managers’…
Best practices pre-pandemic have become even more important as the economy reopens. A top treasury concern for years, cyberattacks ramped up following the sudden transition to the work-from-home regimen prompted by the pandemic. They’ll likely ramp up even further when the economy begins opening up. That was among the takeaways from a session on cybersecurity at a recent virtual NeuGroup meeting headed by Jenny Menna, deputy chief information security officer at U.S. Bank, and Chris Moschovitis, CEO of technology consultancy tmg-emedia.…
Examples of the varying effects lockdowns had on businesses, and how they’ve responded. The coronavirus pandemic has provided more proof that crises affect some companies far differently than others. The reasons include what industry a company is in, its business model and how much cash it has on hand—the haves and the have-nots. Perhaps less expected is that business units within the same company may weather a storm better than others. All this and more emerged in discussions among finance…
April 28, 2020
Keeping the Company Strong after the Initial Hit
Companies have survived the early impact of COVID-19; now the focus is keeping the concern going.There is a lot of talk in treasury and risk circles lately about business continuity plans or BCPs. The talk is mainly around whether the plans worked and what lessons have been learned in the latest crisis. But there has not been as much talk about business resiliency, that is, whether the company, now in the throes of major health crisis, can hang in there…
April 28, 2020
Pandemic Lessons Learned by Treasurers in Asia
How finance teams respond to the need for cash depends in part on their ability to tap global cash pools.As the pandemic brought the world to a standstill, the primary concern of many multinational corporations centered on sustaining their operations, assuming no cash inflows for at least 30 days. For almost every company, that requires a lot of cash! That was among the takeaways from member comments at a recent NeuGroup virtual meeting of treasurers in Asia in early April.Cash…
April 28, 2020
Funding Is Top Priority for Treasurers amid Pandemic: Poll
Treasurers have funding on their minds as they deal with COVID-19. BCP and supply chains also a concern.Securing funding is a top priority for corporate treasurers thrust into the role of organizing companies’ financial response amid the COVID-19 pandemic, according to a recent poll by Bloomberg and Greenwich Associates. Following funding, treasurers say their attention is also on business continuity plans and suppliers.Many treasurers have been tasked with making sure key suppliers have the resources to stay in business and…
April 23, 2020
Pandemic Economy: The Ugly, the Bad, and the Good
From a US standpoint, no matter how experts look at it, the pandemic has created an economic nightmare scenario. But in Asia there may be glimmers of hope. The pandemic has ravaged the global economy and as it lingers, offers little hope of a V-shaped recovery when it eases. It is therefore understandable that the economic prognosis, viewed from that trough of despair, looks pretty ugly. However, the perspectives of several CFOs in Asia participating in a NeuGroup virtual meeting,…