Risk ManagementTechnology
July 24, 2024

CrowdStrike’s Mess: Minor Issues, Some Opportunity for Treasury

Vendors were affected but most members had few problems and some used the outage to test continuity plans.The major blow to global technology systems inflicted by cybersecurity firm CrowdStrike’s botched update last Friday had little or no effect on the treasury, finance and risk management teams run by NeuGroup members who responded to inquiries by NeuGroup Insights this week. “We were not impacted in a material way,” one treasurer said. “It did not impact treasury or the financial close—preparation for…
Cash & Working CapitalRisk Management
July 17, 2024

Contingency Planning Tops Drivers of 2024 Liquidity Policies

New NeuGroup Peer Research shows that preparing for crises drives corporate liquidity strategies, followed by debt management and acquisition agility. “In a financial crisis, the focus on treasury is quick and intense.” An experienced treasurer made that incisive declaration at NeuGroup’s 2024 Treasurers Summit this spring. It neatly captures the heightened urgency surrounding liquidity management—a cornerstone of treasury’s mission—sparked most recently by the pandemic, bank failures and wars. That backdrop and ongoing uncertainty about interest rates, inflation and the U.S. presidential election help…
ComplianceRisk Management
July 10, 2024

Spread Risk Awareness by Spreading the Wealth

Using financial incentives to drive a culture shift in risk management across all levels of a company. Legendary investor and Warren Buffett’s late partner Charlie Munger once said, “show me the incentive and I’ll show you the outcome.” In the business world, monetary incentives drive better decisions, behaviors and outcomes—at least in theory. But can all behaviors be incentivized? What about those involving risk? Discussions at a recent meeting of NeuGroup for Enterprise Risk Management revealed that, as you might expect, enterprise…
Risk ManagementTalking Shop
June 5, 2024

Talking Shop: Spreading Share of Wallet for Interest Rate Swaps

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: Interest rate swaps allow corporates to manage risks stemming from exposure to the fixed and floating rates they pay on debt obligations, including bonds. The price they pay for swaps is a major consideration for companies selecting the banks who become their counterparties in the transaction. In picking counterparties, most treasury teams…
ESGRisk Management
May 15, 2024

Riding the Waves: ERM Navigates Choppy Waters of Climate Change

As climate change intensifies, ERM teams are fortifying business continuity plans and considering relocation strategies. More finance teams are identifying climate change risks as significant threats, responding to an increased rate of natural disasters that can disrupt everything from day-to-day operations to global supply chains. At a recent meeting of NeuGroup for Enterprise Risk Management, risk managers commiserated on how they’ve been hit by recent extreme weather, identified areas in need of improvement and shared a myriad of approaches to mitigate the risk of further…
FXRisk ManagementThe NeuGroup Insights Interview
April 17, 2024

Seeing Risk Through an Auditor’s Sharp Lens: Bill Brewer of BMS

Bristol Myers Squibb’s Bill Brewer on what treasury can learn about risk with an auditor’s mindset and perspective.Effective financial risk management is a fundamental component of how treasury delivers value to a business. And treasury’s skills managing risk have been put to the test repeatedly and profoundly in the last few years amid the pandemic, spiking interest rates, bank failures, wars and more. At Bristol Myers Squibb, treasury has risen to the challenge thanks in part to the expertise of a…
Risk ManagementTalking Shop
March 20, 2024

Talking Shop: Benchmarking Helps Move Insurance Off IA’s Plate

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: Buying insurance coverage is an important and challenging task for most corporations, a form of risk management known as risk transference. Companies purchase policies to cover losses including those from property damage, cyberattacks, claims against directors and officers, and product liability. As noted in a recent Talking Shop about workers’ compensation insurance, oversight of insurance is…
Risk ManagementTechnology
March 13, 2024

Planting Seeds: IT Auditors Aim to Harvest AI Insights From Data

The race for leveraging generative AI as a strategic advantage is on, but the ground must be tilled before the field yields results.Large language models (LLMs) like ChatGPT and Microsoft Copilot have swept through the corporate landscape as many companies have licensed or built their own internal instance of the technology. Early adopters in organizations are getting their hands dirty with this new tool, but those in the know realize that their house—the underlying data on which AI models are…
Risk Management
March 6, 2024

Banding Together: Uniting Risk Management, Finance and Safety

NeuGroup members are creating risk teams within finance that rethink risk from a top-down perspective. In response to rising commercial insurance premiums and other factors, NeuGroup members are taking proactive steps to fortify risk management strategies. One option that came to light at a recent session of NeuGroup for Risk Finance and Insurance: creating a risk management team that sits within finance and is empowered to work with safety, claims and insurance teams to foster a company-wide culture of risk awareness.…
Risk ManagementThe NeuGroup Insights Interview
February 28, 2024

Balancing Act: A Former Auditor’s Perspective on Financial Risk

A Bristol Myers Squibb risk manager shares how a balanced approach to controls can optimize treasury efficiency. The multifaceted job of financial risk management within corporate treasury includes the effective use of controls to mitigate all sorts of potential threats to a company’s financial stability. But don’t let controls get out of control—implementing too many of them to manage financial risks can inadvertently create operational risks. That’s a key takeaway from a recent NeuGroup conversation with Bill Brewer, associate director of financial risk…