BankingCash & Working CapitalTechnology
December 13, 2023

A Journey With J.P. Morgan To Improve Cross-Border Payments

How one member uses the blockchain-based JPM Coin System to streamline cash sweeping. One NeuGroup member whose company operates in Asia, North America and Europe faced a persistent issue with cash trapped in bank accounts after closing hours. To address the problem, he was invited to collaborate with Onyx by J.P. Morgan—and in the process helped shape a new infrastructure for instant payments built on the blockchain. The member, along with a small group of peers, worked with team members from…
Risk ManagementThe NeuGroup Insights Interview
December 13, 2023

Tied to the Business When Crisis Hits: P&G Treasurer Tadd Fowler

At P&G, treasury and tax are “tied at the hip” with the business in countries where instability and volatility prevail. Many multinationals and their finance teams have extensive experience operating in countries in the throes of economic and geopolitical turmoil. Most have used what they’ve learned from managing amid hyperinflation, currency devaluation and war to prepare for future crises. Among them is NeuGroup member company Procter & Gamble. In a NeuGroup video you can watch by hitting the play button below, Tadd Fowler,…
InsurancePension and BenefitsRisk Management
December 13, 2023

Pension Risk Transfer Calculus: Costs, Benefits, Risks

Considering cost is crucial when evaluating the benefits of a pension risk transfer. The pension risk transfer (PRT) market stayed hot this year after setting a record in 2022 that included a $16 billion transfer by IBM. And there are signs—both qualitative and quantitative—that PRT volume will continue to grow as more companies with well-funded plans seek to remove pension liabilities from their balance sheets. “Anecdotally, treasurer-level members have indicated that doing a PRT transaction is likely,” said NeuGroup’s Scott Flieger, who leads NeuGroup for…
RegionalTreasury Management
December 7, 2023

Bangalore Bound: Pushing Processes to Centers of Excellence

Treasury at one company is migrating some processes to a COE in India, part of a larger transformation.The increasingly popular move among multinationals to establish a treasury center of excellence (COE) in a low-cost country or region is a multifaceted endeavor that for one NeuGroup member company included thoroughly assessing processes to determine which ones remain in corporate treasury or regional treasury centers, which go to a managed service provider (MSP) and which belong in the COE. Members of NeuGroup for…
Risk ManagementTechnology
December 7, 2023

Flying Into AI Use Cases, an Internal Auditor Turns to Copilot

Microsoft’s Copilot helps pave the way for more use of AI by auditors and others at corporates embracing change. One NeuGroup member who is an early adopter of Copilot, Microsoft’s assistant for using generative AI within its Office suite of products, demonstrated the usefulness, efficiency and power of large language models (LLMs) like ChatGPT by presenting at a recent NeuGroup meeting with a slide deck generated in part by—you guessed it—AI. The presentation, delivered at the fall peer group meeting of NeuGroup for…
Risk ManagementTalking Shop
December 7, 2023

Talking Shop: Defining the Scope of Fraud Risk Assessments

Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: [email protected]. Context: Fraud risk assessments performed by internal auditors are designed to identify a company’s vulnerabilities to internal and external fraud, including embezzlement, asset misappropriation, misstatement of financial information, corruption and cybercrime. According to a position paper by The Institute of Internal Auditors, “organizations should have robust internal control procedures to limit the risk of fraud,…
Capital MarketsRegionalRisk Management
November 29, 2023

Recession and Rates Rank High on Treasurers’ 2024 Risk Lists

New NeuGroup Peer Research reveals the risk of an economic downturn and high interest expense loom large. As treasurers look ahead to 2024, the results of the NeuGroup 2024 Finance and Treasury Agenda Survey reveal two intertwined risks—headwinds which may also appear at odds with each other—looming on the horizon: the continuing threat of recession, paired with interest rates that may remain higher for longer. Normally, of course, economic weakness brings about lower rates. But the last few years have…
BankingCash & Working CapitalESG
November 29, 2023

Cashing In: Trade Finance Fuels Working Capital, Boosts Sales

How HSBC helped an energy company optimize working capital, boost sales and keep a key client happy about payment terms. Earlier this year, the treasurer at a clean energy company found himself in a precarious position: he needed to get cash in the door faster to fund operating expenses, but the corporate’s annual revenue is heavily reliant on a few large clients who had negotiated long payment terms. At a recent session of NeuGroup for ESG, the treasurer dug into the…
Senior ExecutiveTalking Shop
November 29, 2023

Talking Shop: Spend Authorization Limits for CFOs and CEOs

Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: [email protected]. Context: Delegation of authority policies are an important part of good corporate governance and critical for companies structuring and implementing financial controls and setting limits for spend authorization as well as payment approvals. Financial authority policies cover employees inside and outside of treasury and other finance teams, and at some companies they are wide-ranging.…
Capital MarketsRisk Management
November 16, 2023

Natural, Synthetic, Go Now, Not Yet: Exposure to Floating Rates

Corporates weigh when to swap fixed-rate debt to floating as inflation cools and the rate outlook shifts. Growing conviction that the Federal Reserve is at the end of its interest rate hike cycle and may cut rates next year has turned up the heat on the simmering issue of whether and when corporates with debt should swap some of their fixed-rate exposure to floating rates. Many companies in the NeuGroup Network say nearly all their debt is fixed—a byproduct of very low…