RegionalTreasury Management
January 19, 2023

Girding for Trouble Ahead: A 2023 Crisis Management Playbook

Treasury and finance teams can better prepare for potential disruption and crises by codifying past lessons. Over the last few years, treasuries have faced significant market and geopolitical shocks, including the onset of Covid, the war in Ukraine and extreme global financial market volatility. This year promises to be equally if not more challenging. Respondents to NeuGroup’s 2023 Treasurers’ Agenda Survey listed an economic downturn as their No. 1 risk this year. Financial market volatility was tied with political uncertainty for…
RegionalRisk ManagementTreasury Management
December 1, 2022

People, Prices, Places: Internal Auditors Question Hiring Trends

Internal audit hiring insights: India may be growing less attractive; recruiting talent from the Big Four has downsides. Top companies in North America have looked to India as a leading location for shared services centers and to potentially place at least some internal audit (IA) staff. They have also used the Big Four accounting firms essentially as a default source of new team members. Both of those trends may be wearing thin. One member of NeuGroup for Internal Audit Executives discussing his company’s rapid…
BankingCash & Working CapitalRegional
November 3, 2022

Sending More Cash Out of China Using Pools in Free Trade Zones

Unpacking a member’s cash pool in China in a free trade zone where window guidance put no limit on cash outflows. Many NeuGroup member companies face a challenge getting cash out of China—in part because of rules limiting outflows from cash pools set up under a so-called nationwide scheme to 50% of the net equity held by a company’s entities in the country. But not all multinationals have this problem. At a recent session of NeuGroup for Global Cash and Banking, one member…
RegionalRisk ManagementThe NeuGroup Insights Interview
October 20, 2022

The Importance of Timing When Buying Political Risk Insurance

Laura Burns of WTW explains the benefits of policies that insure losses caused by geopolitical crises in episode nine of NeuGroup’s Strategic Finance Lab podcast. Russia’s escalating war with Ukraine and rising tensions between the US and China are two big reasons why multinational corporations might want to consider buying political risk insurance—in other regions of the world, where it’s not too late to find coverage. To learn what corporates need to know about political risk insurance, hit the play…
InsuranceRegionalRisk Management
August 25, 2022

When To Buy Political Risk Insurance—and When It’s Too Late

WTW’s Laura Burns discusses policies that insure losses caused by geopolitical crises not covered by traditional insurance.Companies including McDonalds and ExxonMobil have reported billions in losses from shutting down business and other events related to Russia’s war in Ukraine. Some of that financial pain may have been avoided if corporates had purchased political risk insurance long before the crisis started, according to Laura Burns, who heads the political risk practice for WTW, formerly known as Willis Towers Watson. In a video you can watch…
FXRegional
July 14, 2022

Righting the FX Hedging Ship After a Perfect Storm

Lessons learned and changes made after a plunge in JPY reveals cracks in communication and processes. The plunge of the Japanese yen (JPY) this year to its lowest level against the US dollar in more than two decades (see chart) revealed communication problems at one NeuGroup member company between FX risk managers in treasury and the sales team in Japan—problems that could have resulted in a painful financial outcome. Instead, the company’s treasurer came away with valuable lessons for any…
Capital MarketsRegional
June 2, 2022

The Fed Won’t Derail the Economy, UMB Tells Assistant Treasurers

The bank’s positive forecast addresses concerns about rates, inflation, growth and unknowns ahead. UMB, the regional commercial bank, presented a surprisingly upbeat economic forecast for this year to assistant treasurers in a recent meeting, suggesting less likelihood they will face difficult choices to help guide their companies through a recession or skyrocketing inflation.  “On our side,” said an assistant treasurer attending the meeting of NeuGroup for Large-Cap Assistant Treasurers, “it’s fear of the unknown,” given the Fed failed to foresee the…
BankingRegional
May 12, 2022

Russia Reality: Paying Taxes to Shield Staff From Criminal Liability

Fear of criminal liability motivates corporates to pay taxes in Russia—but banks are rejecting some tax payments. The threat of criminal prosecution of their employees in Russia is one reason some US-based companies continue to make tax payments in Russia. Meanwhile, several US companies report that Russian tax payments made by entities outside the US have been rejected by a US-based bank. These takeaways emerged at the most recent NeuGroup session where members discuss the challenges facing finance teams at…
BankingCash & Working CapitalRegional
April 28, 2022

Slim Down: A Bank Tells Corporates to Cut Account Balances in Russia

Settling intercompany invoices emerges as the best option for some members to quickly reduce deposit balances in Russia. A major US bank used by scores of NeuGroup member corporations in Russia has recently been making strong recommendations to some of them—in conversations, not in writing—that they find alternatives to the bank as the war with Ukraine enters its third month and the bank further reduces its exposure to Russia. This development sparked discussion among members about contingency plans and how…
RegionalTalking Shop
April 21, 2022

Talking Shop: Does Anyone Have Credit Insurance in Russia? 

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] Member question: “We are assessing the risk of losing the insurance that is currently applied to our receivables that were outstanding at the time of the conflict as they are still outstanding. “Our specific interest is in any actions that your team perceives that, if taken, could give the insurance company the…