Risk Management


Educational Sessions

Are Cybersecurity Concerns Keeping You Up at Night?

Cybercrime is a top concern for treasury practitioners. The 2016 AFP Payments Fraud and Control Survey found that 73% of treasury and finance professionals reported their company fell victim to payment fraud in 2015 — up from 62% in 2014. New innovations in cybersecurity occur seemingly daily, lulling us into a false sense of protection. Don’t be fooled: the threat remains very real. Gain a clearer understanding of the most pressing cybersecurity issues facing treasury today and the mitigation strategies being deployed to address these threats in this critical session.

Cost-Benefit Analysis for Foreign Exchange Risk Management: A Practical Framework to Evaluate Alternatives

Currency risk has senior management’s attention. Given pending changes to hedge accounting standards, all international corporations have reason to revisit their hedging policies. The most challenging considerations for treasury include: 1) how to effectively evaluate their risk management program, 2) the benefits and costs of strategy alternatives, and 3) how to communicate these internally. Acquire a practical framework for reviewing your company’s FX risk management policies that combines risk measurement and cost assessment to determine the relative cost-efficiency of risk management alternatives in this important session.

Advanced Hedging Techniques for FX and Commodity Risk

Forward-thinking firms are expanding their approaches to managing currency and commodity risks. Whirlpool, McCormick, Axalta Coating Systems and Chatham Financial will share techniques that can help you reduce the cost of your programs while increasing their effectiveness. Topics covered include using efficient frontier analysis, reducing costs in emerging markets hedging, implementing dynamic commodity hedging programs and more.

Leverage the Cloud Services Without Sacrificing Security!

Globally, treasury professionals are leveraging the cloud for daily operations. With its acceptance comes concerns about data confidentiality, security, access and control issues. Attend this session to learn about the security factors you need to consider when planning to incorporate a cloud-hosted (Active Service Provider (ASP)) solution for any application. Discover the concerns and perceived risks of an ASP and find out how you can leverage the benefits of the cloud without sacrificing security.

The New U.S. Trading Hub for Chinese Renminbi: Opportunities for Corporations

The People’s Bank of China announced late last year that it had awarded the Bank of China New York branch clearing bank status for the new U.S. Renminbi (RMB) Trading and Clearing Hub. The U.S. joins several other financial centers that have been awarded this status, including Hong Kong, London, Singapore, Australia and Germany. U.S. corporates can now enjoy the same potential cost savings as their European and Asian competitors while continuing to deal with their relationship banking group. This session demystifies the process and examines the opportunities and required steps to take advantage of the new U.S. RMB Trading and Clearing Hub.

Economic Hedging Under New Hedge Accounting Rules

The new FASB hedge accounting provisions will be adopted soon (estimated to begin January 2018). Simplification and targeted improvements open up opportunities to hedge interest rate, foreign currency and commodity exposures without the earnings volatility that companies experience today. Imperfect cash flow, net investment and fair value hedges will be executed with little to no impact on current earnings. This session illustrates how hedging strategies will change starting in 2018, including FX net investment proxy hedging, pre-issue debt hedging, ignoring interest rate floors in floating rate debt and allowing basis and location differences to be disregarded when hedging commodity risk.

Optimizing FX Risk Management Using Options

Currency markets have been characterized lately by rapid spot-trend changes, rising volatility, and increased frequency of tail-events. Such market dynamics reward integrating FX options into a cash flow or economic hedging program. Under what conditions are options more favorable than forward? Does the value proposition differ for developed versus emerging economies’ currencies? What are the best metrics for gauging when options are over/under priced? This session addresses these and other questions to present an objective framework for getting the most bang-for-your-buck out of FX option hedges.

A View From the Energy Industry: Lessons Learned on Managing Credit Risk During a Downturn

In November 2014, the Organization of Petroleum Export Countries announced that it would not cut oil production, prompting the beginning of what would become one of the largest and longest drops in oil prices ever. The result was a massive deterioration in credit quality across the oil industry that put credit managers on high alert. In this session, representatives from Gibson Energy and S&P Global Market Intelligence explore lessons learned about managing credit risk, including examples of how data and technology can be leveraged to more effectively analyze, monitor, manage and communicate credit risk; incorporating a top-down approach to managing credit, and developing a more risk-aware culture.

Capital Efficiency for Risk Financing

Against the pressures businesses face to meet revenue and income targets, treasurers are increasingly being challenged to reevaluate their strategies and defend their choices. As risk becomes an area of board focus, treasurers must stay abreast of the key strategies and methodologies that support successful outcomes in risk management and risk transfer. Explore the questions treasurers need to ask to prudently align strategies with business objectives, optimize decisions concerning retaining and transferring risk, and ultimately build an appropriate risk finance decision making framework with analytics as a foundational element in this session.

Analytics: How Advanced Data Modeling Can Make a Captive More Valuable

A captive insurance vehicle is a premier alternative risk finance solution from which thousands of companies of all sizes benefit. Attend this session to find out how analytics are enabling current and potential captive owners to make better decisions as you gain a deeper understanding about: driving down the economic cost of risk with analytical tools and captives; using analytics to identify and quantify the appropriate level of risk to retain, understanding the value that a captive structure can provide when financing retained risk; the types of captives and how analytics and data can be used to inform the way they are structured; and the trends and factors driving the formation of new captives and domiciles.

Creating Your Currency Risk Management and Controls in a Dynamic Atmosphere

The Duracell International Inc. team quickly established a currency exposure management program after the deal with P&G and Berkshire Hathaway. In this dynamic atmosphere, they were forced to create the proper controls, collaboration within the entire organization, data integrity, and a finance IT structure to manage operations worldwide. Learn how the entire team managed these challenges and met their goals in a discussion led by Mary Gilbert.

Managing FX Risk through Various Company Lifecycles

Companies at different lifecycles, from early stage multi-nationals to mature Fortune 500 companies, have significantly different needs when it comes to managing their FX risk — and vastly different internal resources available to address them. Whether managing FX risk is a portion of one person's job, or there is a dedicated FX team within a large Treasury department, there are a number of best practices for any company to consider. Learn the best approaches to efficiently address the FX risk management requirements at each lifecycle, and how to build a foundation in FX risk management that can grow with your company in this session.

The Return of the Fed: Hedging in a Rising Rate Environment

The day has finally come for corporate treasury to manage a hawkish Fed, and companies continue to search for the best strategies to mitigate the risk of rising rates. Join our panelists spanning across multiple industries as they discuss the internal process of setting a strategy, best practices for implementing hedging tools, and accounting treatment of interest rate derivatives.

When Average is Awesome: How GoDaddy Used Average Rate Forwards to Protect Revenues and Cash

Sales made through GoDaddy’s website are paid for with 43 different currencies. The volatility in converting these currencies to USD creates the risk that the company might not meet forecasted revenues and cash flow guidance. In order to address this exposure, GoDaddy and their partners worked to develop a hedging program. Because revenues are collected 24/7, the company decided that forward settling at an average of each month’s rate was the best approach. Attend this session to hear about the hurdles GoDaddy overcame to launch this program and walk away with best practices for your company’s current or future hedging program.