Financial Risk Management

Financial risk management supports the identification, quantification, and management of exposure to financial instrument risks through real-time reviews and analysis. It helps in planning risk mitigation strategies using financial instruments for hedging purposes.

Key Features of Financial Risk Management

• Identify and assess market, credit, and portfolio risks associated with financial transactions.
• Include tools to calculate risks using market data, control counterparty default risk, or measure investment performance.
• Help estimate risks based on real data or through simulations.
• Actively set limits and classify risks through different hierarchy levels.
• Manage foreign exchange risk across different currencies.
• Manage firm-wide exposure, hedging, and hedge accounting.
• Manage interest rate exposures and limits.
• Ensure compliance with IFRS/US GAAP and local accounting standards for hedge accounting.

SAP Risk Analysers

Market Risk Analyser
Handles Interest/FX/Commodity and security risks Ensure accurate price calculation using techniques such as NPV, sensitivities, etc. Perform cash flow risk analysis. Simulate rates to analyze various scenarios and potential outcomes. Calculate Value at Risk using methods such as Historical, Monte Carlo, and Var-Covar.

Credit Risk Analyser
Manage utilization, counterparty risks, and settlement risks. Centrally measure, analyze and manage counterparty risks. Freely set multi-dimensional limits with limit checks, such as trader-wise, financial product-wise, and company-wise limits.

Portfolio Analyser
Calculate yield. Use benchmark performance indicators for analysis and comparison.

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Explore the various SAP Treasury Management solutions we offer to streamline your financial operations:

Treasury and Risk Management Working Capital Management Cash and Liquidity Management Payments and Bank Communications Treasury Reporting and Compliance

Would you like to discover how BearingPoint's trade finance support expertise can benefit your business? Contact us today to learn more about our services and how we can support your organization's needs.

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