Challenges due to new lease accounting standard
On Wednesday 20 May, Zanders and the Association for Finance Professionals (AFP) held a webinar titled ‘Don’t get left behind: understand the incremental borrowing rate (IBR)’. The audience was updated on implementation and operational challenges that treasurers face due to the new lease accounting standard. We summarize the five lessons learned from the webinar.
High levels of leverage make companies more vulnerable
The Covid-19 outbreak has put an enormous pressure on central banks to come up with a plan to save the global economy. While their focus is mainly on the same tools used in 2008, there are calls to revisit traditional monetary policies in light of the changed economic environment.
An interview with Martijn Habing (ABN AMRO)
The risk models that banks use are validated by model risk managers. It is their role to determine whether all risks facing the bank have been properly identified. Martijn Habing, head of Model Risk Management (MoRM) at ABN AMRO bank, spoke earlier this year at the Zanders Risk Management Seminar about the extent to which a model can predict the impact of an event. After the seminar, we wanted to hear more about MoRM at ABN AMRO.
Treasurers need to reassess liquidity and funding needs
The disruption to the global economy through the first quarter of 2020, caused by the COVID-19 outbreak, presents a unique challenge for finance and treasury teams. Unlike previous episodes of market stress or disruption, the impact of the coronavirus is heading into uncharted territory and may continue for some months, with implications for how organizations manage working capital and supply chains.
The end of the IBOR era is near and IBOR transitions are a big challenge for both the regulators and the insurance industry. Survey results have revealed that most of the insurance firms already have a formal transition plan in place. However, these often lack details, unified planning, and strategizing investment priorities. Nevertheless, we need to anticipate for the transition before the end of 2021.