Financial Risk Management

Risk management can mean many different things. In corporate treasury, risk management often refers to hedging financial risk - changes in foreign exchange, interest rate, and commodity prices that can erode bottom line earnings per share.

Prudent risk management requires a holistic view of treasury risk, so the ability to monitor trading credit limits, calculate market prices and sensitivities, and perform portfolio monitoring is essential. Our partner's (kyriba)  treasury risk  solution provides sophisticated treasury risk management and analysis through an integrated dealer platform, which combines treasury risk management and performance measurement capabilities across all positions managed.

Your complete Risk mamangement can be achieved through the follwoing:

Mark to Market 

With Kyriba, our clients can mark-to-market their FX and Interest Rate transactions based upon market data available via Kyriba’s Market Data pack or imported from third-party data platforms.

Hedge Accounting

Kyriba also offers full accounting support for derivatives to meet the requirements of FAS133, IAS39, ASC815 and IFRS9. In Kyriba's cloud portal, clients can choose to journalize the change in value for their derivative transactions directly to income statement accounts or elect to pursue hedge accounting, where Kyriba will enable the entire workflow of hedge definition & documentation, effectiveness testing, generating the appropriate accounting entries to the balance sheet and P&L accounts, as well as OCI reclassification upon hedge de-designation. Full accounting automation for straight through processing of journal entries to the general ledger is supported for all accounting events.

Overall, Kyriba’s risk management solution comprises:

• Financial Risk

  - derivatives tracking, exposure management, mark to market, and hedge accounting for foreign exchange and interest rate hedging

• Commodities

 - supported by our integration with Chatham Financial, the leader in risk management, Kyriba offers commodities deal tracking, valuations, and hedge accounting

• Operational Risk 

 - financial controls, segregation of duties, business continuity, and disaster recovery

• Fraud & Cybercrime Prevention

 - extended application security, data security, and structured workflows for bank account management and payments

• Liquidity Risk 

 - through extensive cash visibility, forecasting, and pooling, Kyriba enables treasurers to mobilize cash and deploy where it is needed most

• Counterparty Risk

 - implementation and enforcement of counterparty limits alongside counterparty exposure tracking