AFP 2012
Cyber Risk: Are Your Accounts Secure?

By Denise Bedell



Not just a good buzzword to throw out around the water cooler, cyber risk has been high on the agenda of corporate risk managers since the US SEC issued guidance last fall requiring companies to disclose cybersecurity risks in the same way that they would any other operational risks.


Any technology disruption can lead to potentially huge revenue losses for a company. Data breaches present even greater risk—with unknown liabilities resulting from such breaches sure to give even the most even-keeled corporate exec a few sleepless nights.


But in addition to evaluating their own back yards, corporate treasurers must also monitor cyber risks and security in the solutions and connections offered by their banking and technology partners.


Mobile Banking: Real Risk Or Overhyped Compliance Headache?


By Denise Bedell



“It’s not us, it’s our security departments.” This was the mobile banking message coming from corporate attendees at a breakfast roundtable hosted by Citi at the annual AFP conference.


Andrew Gelb, MD, treasury & trade solutions North America head, Citi Transaction Services, noted in an onsite interview that the faster takeup of corporate mobile solutions in emerging markets is not solely down to high penetration rates on the consumer side. It can also be chalked up to the compliance culture in North America and the West, and corporate compliance teams that have yet to be convinced of the security of such solutions.


So if banks want to win corporates over to their much-vaunted mobile suites, they should be sweet-talking corporate compliance departments, in addition to treasurers and CFOs.


End of FDIC Unlimited Insurance: Where Will Companies Stash Cash?


By Denise Bedell 



What to do with cash reserves was much on the tongue of attendees and speakers—both during and between sessions at the AFP annual conference. With the impending end of unlimited FDIC insurance on non-interest-bearing corporate accounts, which is set to expire at year-end, and corporate cash on balance sheet still at record levels—US companies boast more than $1.7 trillion in stashed cash, according to figures from consultancy Treasury Strategies—companies are struggling to determine where to put it for safekeeping.


And it appears that many will not simply leave it where it is when, and if, the unlimited insurance disappears. In a survey of attendees at the conference, the AFP found that 49% of respondents expect that the percentage of corporate balances held in bank accounts will be lower in six months’ time.