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…
Capital MarketsRisk Management
October 13, 2022

Debt Issuers, Don’t Doubt the Fed’s Resolve to Fight Inflation

Insights from Chatham Financial about pre-issuance hedging and tail risk. Companies that anticipate issuing debt should not underestimate the Federal Reserve’s resolve to fight inflation, Chatham Financial executives told members of NeuGroup for Mega-Cap Assistant Treasurers at a recent meeting sponsored by the risk management advisory and technology firm. In light of the Fed’s determination to get inflation back to 2%, Amol Dhargalkar, Chatham’s managing partner and chairman, raised several issues for treasuries to consider as they lay the groundwork for debt…
Risk Management
October 6, 2022

A Treasury Twist on Commodity Hedging: Overseeing Price Locks

Having a physical price lock team report to treasury instead of procurement made perfect sense for one company. Breaking down boundaries and extending the reach and influence of treasury teams can help businesses succeed and may enhance the strategic value of finance in the eyes of a corporation’s senior executives. That takeaway and others emerged during a presentation by the director of risk management at a mega-cap company who now oversees a team dedicated to setting physical price locks for…
Risk ManagementSenior Executive
October 6, 2022

Internal Audit Debate: Keep Reporting to CFO or Switch to CEO?

An IA expert says reporting to the CFO may divert IA resources disproportionally to finance vs other areas. More than three-quarters of US publicly traded companies’ internal audit (IA) functions report administratively to the CFO, although a similar percentage of IA professionals see reporting to the CEO as ideal. Presenting to a meeting of NeuGroup for Internal Audit Executives, Richard Chambers, a former head of the Institute of Internal Auditors (IIA) and a longtime IA practitioner, noted that seeming disconnect as one of several…
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…
ESGInternal Audit ExecutivesRisk Management
June 2, 2022

Internal Auditors Shine a Brighter Light on Climate Data Sources

Pending regulations prompt IA to validate companies’ climate-related claims and incorporate first and second lines of defense. Several members of NeuGroup for Internal Audit Executives have recently or will soon conduct the first audits of their companies’ climate impact reports, and in a recent meeting they generally concluded that ESG group leaders may not understand much of the data behind their reports. The vice president of internal audit at a corporate with supply chains stretching worldwide discussed his company’s annual climate impact…
Risk ManagementTreasury Management
May 26, 2022

Musical Chairs: Where Should ERM Sit To Create the Most Value?

Some corporates are positioning ERM teams to sit under internal audit or corporate strategy. Many enterprise risk management teams are at an inflection point as they aim to become strategic partners to the business. Some corporates are finding that ERM can add more value to the business by sitting within functions like corporate strategy or internal audit. At a recent meeting of NeuGroup for Enterprise Risk Management, two members who recently experienced a shift in reporting—one to internal audit and the other to…
Risk Management
May 12, 2022

Seeing Risks Before They Do Damage Isn’t Impossible

Members of NeuGroup’s corporate enterprise risk management group hear how they can divine unseen, emerging risks. The ancient stoics often practiced premeditatio malorum or the premeditation of evils, which was basically the art of expecting the worst. In a sense, this is how enterprise risk managers must go about their jobs today, particularly when the timeline of 100-year disruptive occurrences has been compressed to every four to five years. Social, geopolitical and environmental risks combined with the everyday risks of…
Risk Management
April 14, 2022

Better Questions, Better Data: Making Risk Tracking Strategic

ERM heads discuss shifting risk survey strategies to improve risk registers and add more value to the company.“Every day in the last two years, it feels like I’ve woken up to a new crisis.” That’s how the head of ERM at one multinational described the current risk environment at a recent meeting of NeuGroup for Enterprise Risk Management. Therefore, he added, even though it often feels like swimming upstream, keeping a comprehensive risk register that keeps track of and scores…
Risk ManagementTalking Shop
March 3, 2022

Talking Shop: How Often Do You Assess Counterparty Risk?

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: “How often do you assess counterparty risk? “For your short-term investments such as bank deposits, what frequency has worked best for your team to measure/assess counterparty risk (e.g., daily to weekly, weekly to monthly, etc.) and what considerations were taken into account for determining frequency (e.g., CDS, credit ratings)? It…