Risk ManagementTreasury Management
April 13, 2021

Flying Higher: Moving ERM Beyond Safety Net to Strategic Partner

ERM is reaching new heights as risk exposures multiply and rising insurance premiums drive a search for options. Enterprise risk management is having a moment amid a seeming explosion of risk exposures facing corporates since the pandemic began. And as the function grows in importance, at least a few ERM teams are heading toward inclusion in corporate strategy groups—a trend definitely worth watching. One member at a late March meeting of NeuGroup’s Corporate ERM group said his goal since recently…
NeuGroup News
April 9, 2021

NeuGroup Continues To Innovate and Refine Virtual Meetings

With 2021’s first-half meeting cycle underway, a message from NeuGroup founder and CEO Joseph Neu.  As we pass the one-year mark of pandemic disruption in most parts of the NeuGroup member universe, we are upping the ante further on our program of opportunities for you to share and learn with other members.    In this cycle, we are rolling out a new events calendar on our website. It is meant to keep you abreast of all the new programming available at NeuGroup to help you navigate the unprecedented change of our times. It also serves as a program guide for prospective…
BankingCash & Working Capital
April 8, 2021

Tapping the Power of In-house Banks to Turn Cash Puddles into Pools

Mega-cap treasurers and PwC discuss multiple benefits of IHBs and some complexities of structuring them. Treasurers not sold on the value of in-house banks (IHBs) often tell Damien McMahon, a partner at PwC, “We have cash pooling already, and therefore we have a kind of in-house bank,” he recently told a group of NeuGroup members from mega-cap companies. In reality, though, many of the treasurers may have what Mr. McMahon called “cash puddles,” not cash pools.PwC and treasurers from two member…
FunctionalRisk ManagementTreasury Management
April 8, 2021

Making the Devil’s Advocate an Angel on Your Shoulder

NeuGroup risk managers make space for contrarians to question decisions and combat overconfidence.Rather than shunning contrarians for challenging conventional thinking, corporates need to make sure their decision-making processes always include a constructive devil’s advocate—someone who forces teams to consider all the ramifications of whatever action—or inaction—a company is contemplating. This was among the key pieces of advice given by Michael Zuraw, head of enterprise risk management at ON Semiconductor, during a presentation on decision-making at a recent ERM-focused NeuGroup meeting.…
BankingTalking ShopTreasury Management
April 8, 2021

Talking Shop: Who Is Allowed to Open Bank Accounts at Your Company?

Editor’s note: The NeuGroup Process brings members together to solve problems and answer each other’s questions in a variety of forums, including online communities for specific groups—one of many benefits of membership. Talking Shop shares valuable insights from these members-only exchanges (anonymously) with all members and NeuGroup Insights readers. We welcome your responses—and any questions you want answered: insights@neugroup.com. Member question: “We are trying to do some benchmarking: Do your board resolutions allow the treasurer (and others?) to open bank…
BankingLibor SOFR
April 6, 2021

Pricing Loans Using SOFR: Wait for Banks or Take the Initiative?

Members discuss the Libor-SOFR transition, including contracts and other non-treasury Libor exposures. Regulators want corporates and their banks to price new loans and other financial exposures using a USD Libor-replacement rate such as SOFR by the year-end deadline—just nine months away. But who should take the lead in this transition—the banks or the corporates? That question and other issues that companies confront relating to the move away from Libor arose at a recent meeting of NeuGroup for Capital Markets sponsored…
NeuGroup News
April 1, 2021

NeuGroup Spotlight: Taking Flight with WiNG, Women in NeuGroup

With Women’s History Month just drawn to a close, NeuGroup spotlights one of its most important, most unique groups.  In late 2018, after years of servicing a broad (but majority male) membership of corporate finance and treasury professionals, NeuGroup created an initiative for the growing—now roughly 30% of our membership—but not specifically served minority of the NeuGroup community: women.  Under the guidance of peer group leaders Anne Friberg and Julie Zawacki-Lucci, WiNG was created to service:  NeuGroup alumnae Current women members Women colleagues of current members Women member prospects and guests  Looking back. The group started out as physical events timed to coincide with peer group meetings of…
FXRisk Management
April 1, 2021

Cut the Static: An FX Risk Manager Transitions to Dynamic Hedging

Standard Chartered guides a client to hedging that requires more analytics but aligns more with risk management goals.The increased frequency of so-called black swan (or gray rhino) events roiling currency markets recently has more corporates establishing or revamping FX hedging programs designed to minimize earnings volatility. They face a host of decisions involving which exposures to hedge, timing, instruments and overall approach—static, dynamic or somewhere in the middle. At a recent meeting of FX risk managers, sponsor Standard Chartered, along…
April 1, 2021

Fight and Flight: Bank Fee on SEPA Payments From UK Sparks Pushback

Corporates respond by moving accounts to other countries, pushing banks to drop the fee and lobbying regulators.The number of banks charging corporates a fee for payments going from the UK to countries in the single euro payments area (SEPA) is growing, and some NeuGroup members are taking action to minimize the impact. Echoing what treasurers in Europe reported at a recent meeting, the head of cash product at a UK-based bank said that “a lot more banks in Europe are…
BankingTalking ShopTechnology
April 1, 2021

Talking Shop: Payment Platforms; Supply Chain Finance; Bank Capital

Member question 1 (payment platforms): “We are having discovery calls with FIS, TIS and Fides to understand their value propositions. “Our main pain points are having all sorts of e-banking portals, and arise when we onboard new entities (recently acquired) and penetrate new countries.“Anybody having any experiences with the vendors listed? And suggestions how to best select (did you RFP this business?).” Peer answer 1: “We have used TIS for some years now and are quite happy. They have a…