Fundamental Accounting Concepts for FX Hedging
Hedging allows treasurers to protect profits and cash flow by locking in revenues, costs and global intercompany transactions, but accounting treatment can be uncertain. Read Now »
Making International Payments
Companies must implement secure and efficient payment processes in the face of a complex and an evolving web of customs, laws and regulations that varies from country to country. Read Now »
Healthcare Meets Cybercrime
The Tools You Need to Fight Back
PNC has assembled a panel to help you address these issues. It includes representatives of the healthcare industry and law enforcement, including the FBI, the Office of the Inspector General of the U.S. Department of Health and Human Services, the National Cyber Forensics & Training Alliance and the National Health Care Anti-Fraud
Are you facing international cash management challenges without uniform internal systems – and with thinly-spread local staff?
According to a 2016 Ovum survey of 200 treasurers in 23 countries, only 13% of multinational corporates can see their real-time global cash position. Treasury teams need to achieve a greater degree of centralization and regain control of their company’s most important asset: cash.
Only 22% of retirement plan sponsors are currently benchmarking the Income Replacement Ratio for their participants. And that can leave a major gap in participant retirement readiness.
The income replacement ratio is the percentage of pre-retirement income that an individual is likely to need to maintain their standard of living in retirement. Adding it to traditional benchmarking metrics can improve how plan providers, along with plan sponsors, communicate and educate plan participants.
Payments fraud attempts are widespread across all industry types. Understand how these fraud schemes are designed to infiltrate/compromise your business and takeaction to prevent them.
Seventy-five percent of organizations were targets of payments fraud in 2016 and half of respondents in a recent survey reported that incidents of fraud attempts increased. Cybercriminals often initiate fraudulent requests from email accounts that appear to be from a company executive or a known external partner. Employees need to recognize the characteristics of a fraudulent payment or change request.
Trade negotiations, including changes to NAFTA and the uncertainties presented by Brexit make the need for foreign exchange risk mitigation more urgent than ever.
Evaluate current risk management practices, including the establishment of a hedge policy. Ensure that your internal policies and controls correctly account for risks. Update your management reporting systems to correctly list your FX exposures and hedging activity.
Hedging allows treasurers to protect profits and cash flow by locking in revenues, costs and global intercompany transactions, but accounting treatment can be uncertain.
Equity markets are highly volatile. Global currency markets have also been experiencing larger than normal swings. Fortunately foreign exchange hedging products such as forwards and options are available to protect against the potentially adverse impact of currency fluctuations.
Many organizations are exploring how to better manage their retirement plan’s investment lineup, control risk, and keep costs down.
Is now the right time to consider outsourcing your defined contribution plan’s investment selection and monitoring? If you’ve already decided to outsource, how do you determine whether a nondiscretionary 3(21) or discretionary 3(38) fiduciary service is best suited to your needs?
Companies must implement secure and efficient payment processes in the face of a complex and an evolving web of customs, laws and regulations that varies from country to country.
Best practices cover payment instructions, understanding local rules, tax implications, using local currency, and collaborating with your bank.
Organizations need to identify the potential exposures, quantify costs and consider additional investments.
PNC Healthcare has worked with a number of large healthcare delivery systems over the last several years, assisting them in grappling with the dramatically changing healthcare environment. The insight we have developed through these relationships can be helpful to any business that offers healthcare insurance to employees or is concerned about rising costs.
Even cross-border payments sent via SWIFT will land in a local payment system where unique banking practices may delay funds’ availability and result in fees to the beneficiary.
Companies need to implement secure and efficient payment practices in the face of customs, processes and regulations that vary from country to country. To avoid delays and extra costs, understand payment rules, regulations and networks.
Check fraud tops the list of fraud methods criminals use, according to the latest AFP Payments Fraud and Control Survey. Why is this latest survey especially worrying?
75% of organizations experienced check fraud in 2016. 74% reported that their organizations were exposed to business email compromise. Nearly half of survey respondents reported that the incidents of fraud attempts increased in 2016.
PNC’s economists forecast that the Federal Reserve will continue to raise interest rates throughout 2017 and beyond.
In order to reduce the impact of rising rates on borrowing costs, companies should develop and implement a comprehensive plan to manage their interest rate exposure. PNC speakers provide a perspective on how external factors may affect your financing costs and what you can do to regain control.
Pension plan sponsors are faced with a volatile political and macro landscape that presents significant opportunities and risks.
There is uncertainty around the timing and potential size of Federal Reserve rate hikes, the potential impact on the longer end of the curve, the policies of a new administration, and the ability of the economy to maintain the positive momentum of the last eight years.
The Federal Reserve’s actions are likely to have a significant impact on financial markets. It is important for borrowers to understand and evaluate the potential effect.
The potential effects of the Fed’s move on borrowing costs is causing companies to closely examine their fixed rate debt, floating rate debt, future financing needs and potential changes in loan structure. The most important consideration is how the current market environment may affect their company’s cash flows and/or value of assets/liabilities.
Even though the Liquidity Coverage Ratio is targeted at banks, your banking relationship — and therefore your business — may be affected.
The Liquidity Coverage Ratio (LCR) was created by banking regulators to enhance the banking industry’s ability to absorb shocks resulting from financial and economic stress and to strengthen the industry’s processes for monitoring and managing liquidity. Over the long term, the LCR rule will benefit your business by increasing the strength of the banking industry.
Pension plan sponsors face a volatile landscape that presents significant opportunities and risks, especially if they have a legacy defined benefit plan, or are considering a merger.
Healthcare systems are complicated organizations, managing their liabilities to maintain credit ratings in a competitive environment. Pension risk is a liability many systems face and several strategies available are highlighted in this article.
Today’s rising interest rate environment may make it possible to improve your return on short-term cash.
Investment policies should include formalized forecasting and contingency plans to prepare key decision-makers for unexpected events. Contingency plans should include a scenario analysis that details events of varying risk or magnitude and how the company will react. For example — divest, stay the course or become more conservative.
Healthcare systems should examine their current strategies, the adequacy of their information systems and the revenue and cost assumptions under which they are operating.
The uncertainty of the Affordable Care Act, cyber security, value-based payment models, mergers and consolidations, monetization of data, transformation of the care continuum and blockchain solutions are among the issues that successful healthcare systems have addressed. Find out what has worked.
Corporate financial managers must consider the impact of interest rate forecasts, future GDP estimates and potential tax reform on corporate cash strategies.
A number of short-term investment options have become part of the consideration set because of the rising market. They include variable net asset value prime money market funds, separately managed accounts and conservative ultra-short bond funds.
Consolidation is a key growth strategy. A robust agriculture equipment sector includes the financing tools and mechanisms farmers need to access state-of-the-art equipment.
Agriculture has been central to Canada’s economy for its entire existence as a country. From the fruit orchards in the West, to the grain and wheat of the Prairie provinces, to the wine regions in Ontario and British Columbia; from the world-class honey and maple syrup, to the dairy and meat producers across the nation, Canada is a significant food and crop producer.
U.S. businesses today may need foreign exchange services if they buy product from overseas suppliers or if they sell product internationally and have foreign currency receivables.
U.S. businesses with a global footprint need an efficient, low-cost method to make and receive payments in currency other than U.S. dollars. Whether a business has foreign currency needs on an ongoing or ad hoc basis, PNC can help manage the impact of exchange rate fluctuations on future cash flows and profitability.
Energy is largely an export industry in Canada. More than a third of the oil, gas and coal production and more than 10% of hydroelectric power exported to the United States.
The energy industry in Canada comprises oil and gas, mining, renewables, and power production and distribution. Each has unique features, including regulatory controls, and the level of involvement by government. They also differ from province to province, with various controls and incentives in place to encourage or discourage investment and foreign involvement.
Opportunities abound for creative financial institutions with the tools needed to partner with government because much infrastructure activity will be funded by deficit budgets.
Infrastructure spending will be roughly aligned with the size of the provinces and the current infrastructure deficit.Key provinces to watch include Ontario, Quebec, British Columbia and Alberta. These four provinces account for 85% of the population and are therefore most likely to get the vast majority of the spending.
Cost structures may allow for increased margins.Time zone alignments and ease of transport can be a significant advantage for U.S. firms with Canadian manufacturing centers.
The most significant and sophisticated hubs for manufacturing are in Ontario and Quebec. Primarily developed to support the automotive, aerospace, telecom and pharmaceutical industries, these hubs boast clean and safe facilities, and many of the manufacturing companies employ world class sophisticated and/or large-scale equipment in their processes and facilities.
Companies that can add value to wood products and have access to markets in place to sell the end products have good opportunities in this market.
The forestry industry in Canada is growing due to increased trade with, and demands from, China. As a result of recent disputes between Canada and the United States, Canada has developed new market channels, which are increasing the demand for softwood and specialty wood products. The industry has been slow to develop value-added wood products.
Get an overview of the business climate within China and recent international developments affecting the market.
Understand the macroeconomic outlook as it affects transactions with China, identify best practices for doing business in China, outline key issues and considerations related to setting up on-the-ground operations in China and gain insight into the currency market and the growing role of the renminbi (RMB) in international trade.
PNC’s economists are predicting increases in 2017 and 2018. A new administration in Washington and political changes in Europe may also affect interest rates.
What does the future hold for interest rates? How will the new interest rate environment affect your borrowing strategies and how can you mitigate the risks? We asked Tina Hwang from PNC’s Capital Markets group to weigh in.
Despite the prospect of a higher interest rate environment, access and availability in the debt capital markets remain open and attractive in both floating and fixed-rate segments.
Banks maintain a solid appetite for new loans as we enter 2017; however, it remains to be seen if banks begin to become more selective in their investment decisions in the overall context of a rising rate environment coupled (potentially) with a less rigid regulatory environment.
2016 included a number of significant political and economic events that will usher in changes during 2017.
PNC’s Harris Williams & Co. subsidiary (www.harriswilliams.com) is a leading M&A advisor with experience across a wide range of industries. Bill Watkins, Managing Director, and Larissa Rozycki, Vice President, discuss results from 2016 and the rationale behind predictions for 2017 M&A activity.
Uncertainty regarding U.S. economic strength, global considerations and unanticipated events will likely result in continued market volatility over the near term.
We follow a consistent and disciplined approach to investing, seeking diversified sources of return. In our opinion, investors are best served if they work with their advisor to focus on their long-term goals, with an asset allocation that is appropriate for the risk profile and return objectives of their unique circumstances.
Cyber criminals are finding new and subtler ways to infiltrate legitimate businesses to conceal or advance their objectives.
As a financial institution that is focused on creating long-term, collaborative relationships with its customers, PNC believes strongly that the USA PATRIOT Act requirement to know our customers, their ownership, business purpose, suppliers and customers benefits our national security — and your security as well.
As 2017 begins, stock and oil prices are moving higher and economic outlooks for 2017 are being revised.
Economic growth will be faster in 2017-2018 with assists from consumer spending, construction spending, business investment and Federal government spending, more than offsetting weakness in U.S. exports as the dollar continues to strengthen and growth outside the U.S. remains slow.
Long a trusted resource for financial institutions, SWIFT also supports corporate treasurers as they face expanding roles and shrinking resources.
SWIFT provides messaging standards that define a common means of structuring data for a broad range of financial purposes, from cash management and foreign exchange to trade finance. Additionally, SWIFT provides a highly secure proprietary communication platform and products such as SWIFT FileAct, which supports the exchange of bulk files between corporates and banks.
The PNC Christmas Price Index® shows the current cost for one set of each of the gifts given in the song, “The Twelve Days of Christmas” to be $34,363.49.
The PNC Christmas Price Index® is a unique and whimsical holiday tradition that calculates what each of the twelve gifts in the holiday classic “The Twelve Days of Christmas” would cost in today’s economy. From Lords-a-Leaping to Drummers Drumming and more, find out how the prices changed this year.
Stocks and bonds are expensive relative to history, growth remains sluggish, and corporate earnings have been unable to gather sustainable momentum.
We remain in a difficult market to forecast, particularly regarding the complex interactions between what we see as the weak fundamental backdrop and how current monetary policy might affect the dollar, interest rates, and investor risk preferences.
Some of the considerations for U.S. companies doing business in Canada and the industries with the most potential; manufacturing, agriculture, forestry, infrastructure and energy.
Although Canada offers opportunity in most industries, there are some that have unique and specific potential today. Similarities between industries across the border, foreign exchange advantages and simply the growth potential of each sector within Canada are among them.
As e-commerce moves towards 10% share of total retail sales, mobile commerce is expected to grow exponentially in the coming years.
Widespread consumer adoption of payment technologies can lead to demand in the commercial space. For these reasons, trends in consumer payment innovation can be early indicators for changes in commercial payments.
Do political trends influence interest rates during an election cycle?
Companies should be armed with a comprehensive risk management policy and exercise discipline in implementing their hedging strategy regardless of the political environment and market conditions. Prepare to implement your hedging strategy in a timely manner.
The controls that come with the latest commercial payment methods enable CFOs, controllers and program administrators to exercise greater control over payment systems and practices.
The potential benefits associated with strong controls can be significant in terms of cost savings and peace of mind. Conversely, failure to implement appropriate payment controls can subject an organization to unnecessary financial risk.
You can find relief by improving management of invoice processing through payment.
Invoice automation can help you optimize the use of employee resources, significantly decrease the cost of processing invoices, help you capture vendor discounts more reliably and increase scale within your back office.
It's clear that corporations and individuals need to understand the risks and opportunities as an uncertain situation evolves.
Britain's Brexit vote upended expectations with 51.9 % of voters backing the "leave" campaign versus 48.1% backing "remain." The result sent shock waves through the markets and created an unstable political environment in the United Kingdom in the weeks following.
The final fiduciary rule issued by the Department of Labor carves out a fiduciary-free zone that allows the delivery of investment education to retirement plan participants.
Those who are perceived to have deep pockets present attractive litigation targets. Professionals and business owners are well aware of their risks. Many of these professionals can face malpractice claims, breach of contract claims, and personal injury claims, but there are a multitude of additional risks that professionals and employers confront.
When planning for risk, start with the easiest and least expensive measures and work through the options, weighing whether each measure can address each risk appropriately.
Those who are perceived to have deep pockets present attractive litigation targets. Professionals and business owners are well aware of their risks. Many of these professionals can face malpractice claims, breach of contract claims, and personal injury claims, but there are a multitude of additional risks that professionals and employers confront.
Choices about caring for your elderly loved one have to be made in context of what they could mean to your long-term future.
The conflict of caregiving duties with work activities is intense: Six in 10 caregivers who worked full-time in 2015 also reported having to reduce hours or take a leave of absence. Some workers find they are able to better manage when they take advantage of workplace accommodations such as telecommuting, flexible hours and paid sick days.
Chart provides detailed information on Money Market Fund regulation considerations at a glance.
Intended to preserve the benefits of money market funds while increasing transparency and strengthening investor confidence, new regulations effective in October 2016 will require a re-evaluation of your cash management strategy.
The federal election will affect policy and conditions for business and investing for at least the next four years. This uncertainty may not be helpful for upward market momentum.
It’s too soon to make predictions about what’s in store for investors during the next presidential term. However, review of current conditions and past patterns makes it likely that investors could see quite a bit of market volatility for the near term.
The industry experienced increased fraud activity in advance of EMV with data breaches hitting high-profile brands.
Improve your awareness of Card-Not-Present (CNP) fraud with the adoption of EMV. Understand how PNC’s fraud strategies and intelligent neural network can help prevent fraud while balancing risk with the cardholder experience. Understand how PNC’s fraud strategies and intelligent neural network can help prevent fraud while balancing risk with the cardholder experience.
The healthcare cost trajectory has significant implications for companies and employees today --and on retirement prospects for individuals down the road.
Changes in healthcare are monumental. It’s hard enough for employers to understand the new landscape. It can be even harder for employees, leaving a significant gap in understanding between the two groups, particularly when it comes to retirement planning.
Create an education program that incorporates both financial and physical wellness for your employees.Communicate with your employees to identify key topics of concern.
Employers can play a significant role in helping their employees achieve a financially secure retirement by addressing the least understood threat to their retirement dreams — the cost of healthcare. The failure to plan adequately for the increase in demand for healthcare in retirement and their projected costs may upend even the best-laid plans.
If you are one of the growing number of companies doing business in China, recent moves to liberalize its currency can have substantial
bottom-line benefits for you.
Although U.S. companies have historically believed that negotiating international agreements in USD insulates them from exposure to currency volatility, it also puts them at a competitive disadvantage compared to companies that transact in local currency.
China’s dramatic growth in international trade has made it the second largest economy in the world. The Chinese Renminbi is now the fifth most common currency in world trade.
The Chinese government has undertaken a process to liberalize and internationalize its currency, relaxing rules to become more equal trading partners with other developed countries. This includes expanding the use of the Chinese Renminbi (RMB) for global trade settlement, encouraging a robust offshore RMB environment and liberalizing access to on-shore RMB accounts.
Around the world, the momentum behind the move to real-time payments (RTP) — or “Immediate Payments,” as they’re often termed — is unstoppable and growing.
The U.S. has been conspicuous in its absence from the list of countries embracing RTP. That’s changing fast, with a surge of activity and initiatives under way to bring payments in the U.S. up to speed with the rest of the world. These moves involve a broad range of players, and an approach specifically geared to the unique needs and requirements of the U.S. market.
The Department of Labor has issued a final rule that expands the definition of fiduciary “investment advice” under the Employee Retirement Income Security Act of 1974, as amended.
The Final Rule confirms that individuals who provide investment advice to owners of Individual Retirement Account (IRA), Health Savings Account (HSA) and similar individual arrangements will be considered fiduciaries. In addition, the Final Rule expands fiduciary advice to include rollover recommendations.
In September 2015, the 10-year swap spread turned negative, and today, all swap spreads with a tenor of 5 years and greater are negative.
Current negative swap spreads present an opportunity for market participants favoring fixed rate debt. The bank markets traditionally price over LIBOR, and the bond markets price over Treasuries. By electing to pay a fixed swap rate, a market participant enjoys the benefit of negative swap spreads through a lower swap rate paid for the life of the contract.
Learn how to better manage intercompany payments, reduce transaction costs and improve intracompany reconciliation.
Multinational corporations face many challenges in managing growth across multiple continents, currencies, and accounting systems. Treasury managers can facilitate cross-border settlements among affiliates, increase productivity and generate cost savings with a multilateral netting solution.
Whether you have made the decision to sell your business or are just exploring your options for the future, understanding the road ahead can mean the difference between success and disappointment.
Business sales are complex transactions that are influenced by many variables. Planning ahead can increase the likelihood of success and potentially enable you to navigate tax considerations. An experienced investment banker who is familiar with your industry can ensure that your business is positioned to achieve maximum value and that the sale process is managed properly.
An RFP allows your organization to describe its objectives, priorities and expectations for bidding potential service providers.
An RFP helps you identify the best provider for your needs.It also plays a critical role in fulfilling the fiduciary responsibility of acting prudently and for the exclusive benefit of plan participants and beneficiaries, and serves as a written record of the systematic process behind the selection of your plan service provider.
Today’s cybercriminals can attack your business from all sides.
They may target employees at any level in your organization in an attempt to execute fraudulent payments. Chief information officers and risk managers, along with employees who may not typically be part of the security conversation will find this webinar useful and compelling.
There are seven common principles a business owner family can use to successfully transition to a financial family. These principles are outlined in this paper.
After the sale of a family business, the business owner family must transition to a financial family. An important element of a family’s successful transition is an understanding that the business purpose that drove and united the family. Without a common purpose, the family does not have a common goal or focus.
Many American workers are not prepared to retire, no matter what age.
A study by the Board of Governors of the Federal Reserve System found only about 25% of individuals they surveyed were actively saving for retirement. The Fed study noted that the shift from defined-benefit plans to defined-contribution plans has placed greater personal responsibility on employees to plan and save for their own retirement.
Companies must do their part in maintaining the integrity of the trade supply chain.
About 80 percent of illicit financial flows from developing countries are now channeled through trade-based money laundering (TBML), according to Global Financial Integrity (GFI), a research and advocacy organization.
Using a multi-track educational approach can teach participants the value of retirement plan participation and keys to staying on track.
Research suggests that plan sponsors are grappling with a conflict between the belief that they provide valuable participant education and the recognition that too many employees are not making informed decisions about their retirement. A deeper understanding behind this disconnect may be the first step in developing a more effective participant education approach.
There are several reasons that options should be a part of your risk management strategy. They provide protection, upside, flexibility and they can be customized to suit your needs.
Condensed from an Advisory Series Webinar, this presentation explains various types of options and the pros and cons of each. Options contracts function similar to insurance policies. They require an up front premium, offer you a form of protection and you're better off if you don't need to use them. Download Slides »
An estate plan should be dynamic with changes being made as your life changes. This article may offer some guidance as to when you should review your estate plan.
With greater wealth comes a greater potential need to plan. Estate taxes may now be an issue and you may want to explore various estate planning strategies to reduce your taxes or minimize the impact of those taxes. You may also want to establish trusts for children and grandchildren to better plan for their future.
PNC Healthcare commissioned Shapiro+Raj to explore changes in the healthcare environment and their impact on providers, payers, and employers. Here are the findings of that study.
Millennials will shape the future of American healthcare. They seek change throughout the system. They embrace retail and acute care clinics. They take the most responsibility for their own healthcare. They spend more time researching online, finding providers and getting others’ opinions and they will force much more change compared to Boomers and seniors.
The strength of the dollar, a favorable interest
rate environment and an abundance of cash on
hand may make this a good time for domestic
companies to invest outside the U.S.
Companies considering a cross-border merger or acquisition should evaluate the currency risk during the due-diligence stage of the deal to ensure that currency rate volatility does not adversely affect the target price.You can perform a “Value at Risk” analysis to quantify the currency risk between now and closing.
The majority of your employees may not be investing enough for retirement and aren't engaged in retirement planning. Education can benefit your employees and your business.
Employees need to feel that they’re in control of their basic financial needs before they can focus on more complex, longer-term financial decisions, such as retirement. If you can help your employees become more confident in managing these needs, they’ll be more likely to plan for their retirement. And your company will benefit.
Now that economic conditions appear to be stabilizing, many are re-focusing on improving their chances for a comfortable retirement. Some are taking a fresh look at their 401(k) plans.
Americans’ confidence in their ability to afford a comfortable retirement has plunged to a record low. But these may mean a more realistic appraisal of the savings needed for retirement. Influenced in part by the recession and turmoil in the financial and housing markets, many are redefining retirement—including retiring later or crafting a “working retirement.
Canada’s Office of the Superintendent of Financial Institutions has granted PNC Bank Canada Branch (“PNC Canada”) a full-service branch license.
Canada is the United States' largest export market and the second largest source of imports after China. Companies doing business in Canada face a number of challenges as they deal with customs documentation and adapt their operations for sales tax accounting, procurement procedures and even packaging and labeling. PNC can help.
China has experienced strong growth and is now the largest exporter of manufactured goods and the second largest economy in the world.
Transacting in Chinese currency allows importers to realize cost savings and efficiencies, while allowing the invoice payment to be made in the exporters’ native currency, thereby reducing their cost as well.
Foreign currency volatility has reduced earnings from both a transaction and translation perspective. Explore strategies for mitigating the currency impact on earnings and cash flow.
Find out how a strengthening dollar can create a headwind for companies doing business internationally. The recent spike in foreign currency volatility has taken a big bite out of earnings, from both a transaction and a translation perspective. This presentation helps explain these issues.
Certain individuals who are ineligible to contribute directly to a Roth IRA may be able to CONVERT traditional IRA and qualified employer-sponsored retirement plan assets to Roth IRAs.
If you are fortunate enough to have more than sufficient retirement income and assets, here's a strategy that can be a great way to transfer wealth to the next generation.Traditional IRA balances can be converted to Roth IRAs in part or in whole and there is no limit on how often this can occur.
Exchange rate volatility exists between most currencies. By transacting in the local currency, companies are able to manage exchange rate risk, effectively reducing potential premiums.
Over the past two decades, the U.S. economy has become increasingly linked to global markets, both for sourcing and sales. Historically, U.S. companies tended to prefer to negotiate all international agreements in U.S. dollars. However, they may increasingly placed themselves at a competitive disadvantage by doing so.
Plan sponsors are in a unique position to help their employees become more retirement-ready by considering plan design changes as well as consistent, effective employee education.
With retirement savings taking a back seat to more immediate financial concerns, and the percentage of workers confident that they’ll have enough money for a comfortable retirement at low levels, it’s more important than ever for plan sponsors to consider retirement readiness as a key — if not the key issue — their employees are facing.
With interest rates on the rise, do income-producing stocks still belong in the average investor's portfolio? The answer is, probably — but it depends.
Dividend stocks are enticing to investors during periods of volatility because in such a market they tend to perform well relative to more growth-oriented or higher-risk equities. Companies with a long track record of offering dividends tend to be slow growing; it’s their income potential that appeals to shareholders.
As international business grows more important to U.S. companies, it's vital to recognize that import and export activities are heavily regulated by the U.S. Government.
If you are conducting international business, if you are engaging in new types of transactions, if you are doing business with new entities or in new geographic regions, you may receive questions from government entities or your financial institution. Everyone involved is responsible for compliance and could face penalties or fines for noncompliance.
Risk can be defined as the possibility that your retirement assets will not provide for your essential living expenses. The retirement goal for most is to provide the cash necessary.
It seems more Americans are taking responsibility for managing their own retirement assets instead of relying solely on a pension. Many are also wondering how to fund the period after the traditional retirement age. Given these factors, we believe thinking about a retirement goal has never been more crucial.
In addition to expanded opportunity, international investing helps reduce portfolio risk through diversification. Allocations to non-U.S. stocks can reduce portfolio volatility.
International equity plays a critical role in a well-balanced portfolio. International stocks are a large and growing share of the global investment universe and offer investors the potential to capitalize on faster long-term growth trends abroad. There are also investment opportunities in industry segments that are dominated by non-U.S. companies.
Health Savings Accounts (HSAs) can reduce costs and encourage individuals to take greater responsibility for their health. Find out where they fit in today's healthcare environment.
HSAs are not entirely new, but are receiving greater attention today in relation to high-deductible health insurance plans and the Affordable Care Act. They are often viewed as a strategy for reducing healthcare costs and for encouraging individuals to take greater responsibility for their health and the cost of care.
The primary benefit of auto enrollment is that it works to overcome inertia for individuals who procrastinate or do nothing about 401(k) plan participation.
Automatic enrollment has been particularly effective in raising 401(k) plan participation levels of groups with the lowest contribution rates — younger and lower-wage workers, but some questions remain. As a plan sponsor, you should understand both the potential benefits and the limitations.
Professionals such as physicians, attorneys and business owners are at risk for liability and litigation. Those who are assumed to have deep pockets can become high profile targets.
Asset protection planning is an important part of a comprehensive estate and financial plan addressing an individual’s risks now and in the future. Proper asset protection planning requires time, consideration and knowledge to fully integrate the planning holistically and effectively.
Your financial well-being, like your health, can benefit from regular checkups — but where to start? Here is a step-by-step plan to improve your financial fitness.
Pay yourself first. Create a budget. Pay down credit card debt. Prepare a personal net worth statement. Review your estate planning documents. Rebalance your investment portfolio. Review your insurance and your tax plan and seek guidance from a qualified wealth management professional to improve your financial wel being.
Currency markets are experiencing a significant amount of volatility. Hedging programs can help companies protect profits and cash flow.
While most companies start with hedging balance sheet exposures as they are more visible, more are now considering hedging forecasted exposures such as sales or expenses. Hedging anticipated cash flows depends on the company’s ability to forecast reasonably accurately, although uncertainties can be managed by hedging a percentage of your anticipated exposure.
If you are a plan sponsor, you may be impacted by new executive initiatives, legislative proposals and a range of anticipated regulatory actions affecting retirement plans.
MyRA is a government-sponsored retirement account which is designed to be a starter account for Americans who have had difficulty saving for retirement. Eligible individuals whose employers agree to participate will be able to make myRA contributions via payroll deduction.
Companies of all sizes are increasingly looking for growth beyond borders. In order to succeed in the international marketplace, you need control and flexibility in your cash flow.
Multicurrency accounts, multibank reporting capabilities and multibank transfers should be available through a robust online portal that makes transactions easy, transparent and accurate. Introductions and support with international financial institutions and trading partners are also essential element of a successful international cash flow strategy.
Most businesses need both disaster planning and business resiliency strategies, but resilency can come into play almost every day.
Business resiliency plans ensure uninterrupted processing for essential functions. Most business interruptions fall into one or more of these 5 categories: hardware, facilities, network/telecom, software and people. With a strong business resiliency plan, you can be prepared and avoid the difficulties of recovery without one.
The first step in developing a solid 401(k) benefit plan is to create a request for proposal (RFP) that clearly describes a company's objectives and expectations.
The value of an RFP lies in the process and thinking that is invested in it. It should be designed to detail requirements for potential vendors. This exercise lays the foundation that creates the framework of a solid 401(k) employee benefit plan and helps identify an effective provider.
Our close relationship with Canada can make us forget that it offers unique business potential and may have customs, laws, rules and regulations that require attention and insight
Whether you have subsidiaries, operations or sales offices in both Canada and the United States -- or are planning an expansion north of the border -- you will need help from your financial institution in managing payables, receivables and currency issues and arranging credit and treasury management services.
Whether you are establishing a new retirement plan or improving an existing one, setting goals is a critical first step in achieving a plan that is effective for the company and its employees.
Real success springs from a belief that the employer is in a partnership with its employees in a shared mission to help them achieve financial security in retirement. This partnership may take many forms, including matching contributions, auto-enrollment, continuing education and planning assistance.
Fiduciaries have important responsibilities and are subject to strict standards of conduct. However, plan sponsors may not know who the fiduciaries to the plan are.
If you are involved in the administration of your company's retirement plan, it is important to understand what your role as a plan sponsor entails, as well as how to delegate parts of your fiduciary responsibility if you choose to do so. Even unintentional mistakes can lead to a breach of fiduciary duty that can have significant consequences.
Doing business with Brazil, Russia, India, China and South Africa can be challenging for companies accustomed to the certainties of mainstream currencies.
Although the BRICS proactively promote international business, their governments remain concerned that any sudden inflow or outflow of money could de-stabilize their economies. As a result, they have implemented restrictions on international transactions. Trade and capital payments are regulated and certain hedging practices are prohibited.
Volatility affects the market value of your retirement portfolio. Thus, it's a topic that deserves special consideration when managing retirement and pre-retirement assets.
It is possible to reduce volatility risk with conservative investments of the money needed in the next few years, while maintaining normal allocations with the money earmarked for use over longer investment holding periods. A prospective or current retiree should consider setting aside at least a year of expenses to provide an adequate cash reserve.
Business owners and corporate treasurers are reviewing their projections for funded debt levels over the next several years to manage their mix of fixed and floating rate debt.
A hedging solution called the yield curve efficient interest rate swap closely follows the expected future path of interest rates. The frequency and timing of the increases can be tailored to meet specific cash flow needs.
Companies are beginning to recognize the importance of having an investment policy that provides clear direction on how investments will be managed and how much risk is acceptable.
A solid investment policy include formalized forecasting and contingency plans to prepare key decision-makers for unexpected events. Contingency plans should include a scenario analysis that details events of varying risk or magnitude and how the company will react. For example — divest, stay the course, or become more conservative.
Too many of our nation's businesses have been hit by cybercrime. Yours doesn't have to be one of them. Find out how to fight the latest ploys.
Just as the financial marketplace is driving to faster and more anonymous transactions, fraudsters are increasingly using old-fashioned methods to collect financial information that can enable them to compromise your accounts. Corporations, both large and small, as well as government entities, school districts and individuals, are vulnerable.
Cybercriminals are becoming increasingly malicious and sophisticated, using a combination of tactics to gain your trust. Find out how to thwart them.
Dozens of botnets have helped thieves heist more than $100 million from the accounts of businesses around the world. Hackers stole more than $1 million from the payroll accounts of a Washington State hospital. Cyber thieves operating out of Ukraine are believed to be responsible for massive ebanking losses over the past few years.
Many companies that had previously elected to hedge with an interest rate swap will be faced with early termination or make whole of their current interest rate swap.
In the face of moderate economic growth in the United States and overseas, short and long-term interest rates remain at historically low levels. There are many flexible and creative hedging solutions available. You should review the expected duration of your debt portfolio and consult with your capital markets profession to discuss your options.
Canada is a vitally important market for U.S. companies. The United States sells more goods to Canada than to all 27 countries of the European Union combined.
The ease and longevity of our relationship with Canada can make us forget that the enormous territory to the north is not just an extension of the United States. Like any other global market, Canada has its own customs, laws, rules, and regulations that require just as much attention and insight as those of our more distant trading partners.
Does your company have a well-thought-out investment policy? Does your policy have clear, measurable objectives? Has it been written down and shared with the appropriate team?
Putting your investment policy in writing is the foundation of effective investing. Your policy should provide benchmarks to help you evaluate how well it is working and what changes may be needed to make it more effective. While every company is different several elements should be part of every policy.
A retirement plan's design, carefully constructed, monitored and maintained, forms the foundation of any successful plan to provide a more stable and secure retirement for participants.
A well-designed plan serves as a magnet to attract and retain key employees; communicates to all participants that this is not simply an ordinary benefit at an ordinary company; and represents an opportunity for employers to illustrate their commitment to participants’ individual retirement plans and for participants to optimize their personal financial security.
Healthcare costs are forcing a new calculus on traditional retirement planning. They are rising faster than inflation and will consume a growing percentage of our spending as we grow older.
Individuals appear to be significantly underestimating what health care in retirement will cost them. According to a report issued by the Stanford Center on Longevity, “43% of middle-income Americans are paying more for healthcare with Medicare than they expected they would.” One reason for this may be that many are overlooking the prospect of long-term care.
Does your company have a well-thought out investment policy? Does your policy have clear, measurable objectives? Has it been written down and shared with the appropriate team?
Putting your investment policy in writing is the foundation of effective investing. Your policy should provide benchmarks to help you evaluate how well it is working and what changes may be needed to make it more effective.
When you contemplate the sale of your business, market timing, economic considerations, competitive trends, tax strategies and future capital requirements should be taken into account.
Merger and acquisition ("M&A") transactions can raise a series of important considerations that significantly impact business owners. When is the right time for an M&A transaction? What steps are required? When selling a company, how can business owners achieve liquidity and maximize value while still looking after the best interests of their company?
There are five threats to retirement that investors should be aware of. This article discusses those risks and how investors can seek to mitigate them.
Thinking about retirement is no longer a future event for many Americans; most recognize the need for careful planning throughout their working years. While it is a positive that Americans are expected to live longer, this can add to the already daunting challenges of funding a comfortable retirement.
More and more U.S. companies are engaging with vibrant emerging markets.Smart hedging strategies can help you reduce the risks of doing business there.
Manufacturing capacity, raw materials, labor and even technology make emerging markets attractive destinations for international expansion. At the same time, doing business with countries like Brazil, Russia, India, China and South Africa can be a challenge for companies accustomed to the certainties of mainstream currencies.
Even unintentional mistakes can lead to a breach of fiduciary duty that can have significant consequences for your company and you personally.
If you are involved in the administration of your company's retirement plan, it is important to understand what your role as a plan sponsor entails and how to delegate parts of your fiduciary responsibility. Even unintentional mistakes can lead to a breach of fiduciary duty that can have significant consequences for your company and you personally.
A number of actions, when combined and layered effectively, can provide a robust defense against many major threats. Your financial institution can be a valuable ally in the fight.
Yesterday's cyber crimes were often intended to cause disruption by infecting your computers with harmful viruses. Today, they are increasingly malicious and sophisticated, using a combination of tactics to gain your trust...and access to your company's financial accounts.
Companies need to define a risk management objective. What are you trying to hedge and why? Every company has different metrics that should be incorporated into their hedging decisions.
Companies buying, selling or capitalizing a foreign business often overlook currency risks. including impacts on valuation, financial statements, and capitalization. Get specific, actionable information on currency risk management, including pre-close exposure/hedging, managing the currency impact of capitalization decisions and financial statement impacts.
Fiduciary responsibility is very important to 401(k) plan sponsors.Confirming that plan fees and expenses are reasonable part of their role.
Benchmarking against comparable organizations’ plans is often the most cost-effective and least disruptive method to determine whether fees are reasonable. It involves comparing your plan to plans of a group of organizations that resemble your own. A thorough benchmarking process will balance fee components and value components.
Your fee disclosure review is an opportunity to make sure your current plan is meeting objectives — those you’ve established for your 401(k) plan, as well those of your participants.
Fiduciary responsibility under ERISA is very important to 401(k) plan sponsors. Fiduciaries are subject to standards of conduct because they act on behalf of participants in a retirement plan and their beneficiaries. Ensuring that disclosures are adequate and that plan fees and expenses are reasonable are two aspects of these responsibilities.
Amost half of international companies surveyed reported growth of 20% or more while those that did not do business internationally lagged behind.
The Export-Import Bank of the United States was established in 1934 to serve as the official export credit agency of the United States to create and sustain U.S. jobs by financing sales of U.S. exports to international buyers. PNC has worked with the Ex-Im Bank for more than 40 years.
The wrong strategy, the wrong partner and poor management can knock you off track in China. Learn about challenges in the operating environment.
Often companies initially focus their strategy for China on the basic how to’s: How do I start a company? How do I find an agent? How do I open a bank account? These are important questions. But these are not the issues that can inhibit your success in China.
The value of the U.S. dollar has always changed — and it will continue to change. So it's important to have a grasp on what it will be worth in the near future and longer-term.
Today the U.S. dollar is a “fiat” currency and is not supported by any physical asset. Put another way, the U.S. dollar represents value simply based on the confidence in the United States government and the United States economy. It is the full trust and belief in the power, trustworthiness, and reliability of the United States.
Biases are the basis for cognitive and emotional errors when we apply them in financial markets and they often result in financial losses.
Humans have an amazing capacity for reasoning, memory, action, feelings and emotions. But capacity alone does not ensure that we will develop the proper biases to employ every day in predictive scenarios. In some cases, these biases come hardwired in our brains and work against us when it comes to predicting market movements.
Educate your organization about the myriad fraud schemes that can attack your system, including best practices for IT security. Also enhance the security of your computers and networks.
Just as the financial marketplace is driving to faster and more anonymous transactions, fraudsters are increasingly using old-fashioned methods to collect tid-bits of financial information that can enable them to compromise your accounts. Corporations both large and small as well as government entities, school districts and individuals are vulnerable.
If the business is transferred to a Delaware Incomplete-Gift Non-Grantor Trust prior to a sale, the business owner may be able to eliminate state and local taxes on the capital gains.
With roots that go back to the first bank charter in Wilmington, Delaware in 1795, PNC Delaware Trust Company has grown by providing customized strategies for personal and business asset protection and innovative wealth planning approaches. A limited purpose trust company established under the laws of Delaware, it provides a number of benefits unique to Delaware.
As an owner of a privately-held company or an executive in a publicly traded corporation, you may be spending more time addressing economic issues and less on your own financial planning.
In order to be successful, your plan must be documented. For corporate executives looking to buy or sell their stock, this could include filings with regulatory agencies. A business owner may need to work with his or her legal advisors regarding a variety of structures to support the plan, such as buy-sell agreements, business entities and trusts.
Initiating or expanding your international business presence is key to growth. The right resources can improve your chances for success while mitigating risk.
The rewards of doing business internationally have never been greater. And it’s never been more important for businesses of all sizes to understand how to take advantage of the opportunities and mitigate the risks presented by global commerce. Here are some winning strategies to help you participate in the growth of international trade.
Given the many reasons that companies may need an escrow account, it's important to screen escrow service providers to make sure they meet the needs of all parties.
When companies engage in mergers, acquisitions or real estate transactions, all eyes are on closing the deal. However, choosing an escrow agent — often a mandatory step in the process — is frequently low on the priority list, even though a successful close may rely on it.
Smart managers are sweetening their employee benefits package with additional perks to help their company stay competitive in the market for good employees.
Essentially, a workplace banking program is a package of discounted financial services and special benefits your company can offer to employees as part of your overall benefits package. Typically, there is no cost to participate, only rewards for both your company and your employees.
Credit is available with competitive terms for companies that see their bank as a vital resource. Here are tips for keeping an open relationship with your banker.
Imagine that you run a mid-size company with deep ties to an industry challenged by economic conditions. After decades of success, growth has stalled -- and your income statement is beginning to show it. Open communication with your banker puts everyone in a better position to structure and negotiate the right credit solutions for the challenges at hand.