Manage cash and investments, and mitigate risk with treasury and financial risk management software (TRM)
Speculations on the economic stability of regions and recent recessions have reduced the liquidity of the enterprises in the market. This has increased the complexity of attaining equilibrium between enterprise liquidity, revenue streams and asset values, and financial risk for treasury professionals across the industries - all this in a toughening regulatory and legal environment.
To meet these challenges and still perform atoptimal levels, treasury decision makers wantgreater transparency and control over complexprocesses associated with managing payments,cash, liquidity, and risk. At all times,they must know where their cash is, where it'soriginating, and where it's needed.
SAP software for treasury and risk management is natively integrated to increasetransparency and control. It provides a single source of information and automatesmany critical processes, eliminating extensive manual data gathering and rekeying,duplicate efforts, reconciliation, and human errors.
Payment and Bank Communications
Centralize and optimize processes – from in-house banking to corporate-to-bankcommunication.
- Automated payment workflow streamlinesrouting and approvals.
- Intuitive status monitoring provides visibilityinto the payment lifecycle.
- Standards-based interfaces eliminate the needto create custom interfaces for propriety bank.
Cash and Liquidity Management
Increase cash flow transparency of working capital across the whole group andimprove liquidity planning.
- The applications provide an overview on actualcash position per current day, the next fewdays, and weeks to come. This allows analysisof short- and midterm cash flow.
- The Company can also pinpoint and optimize liquidity byindividual departments, subsidiaries, businesssubunits, or organizations.
Debt and Investment Management
Manage transactions and multiple financial instruments, while monitoring andcontrolling investments and risks.
- You can rapidly tap into electronic marketplaces for commercial paper (short-term debt) to obtain liquidity.
- Complete integration with the SAP ERPFinancials solution helps ensure accurateaccounting compliance in accordance withboth Generally Accepted Accounting Principles(US-GAAP) and International FinancialReporting Standards (IFRS).
Financial Risk Management
Identify and quantify exposure to foreign exchange, interest rate, commodity price,and counterparty risk.
- Financial risk analytics can help determinethe effects of market risks – including interestrate, foreign exchange, and commodity pricefluctuations on revenue streams, input costs,and cash flows. Also, decision makers canpinpoint counterparty risk exposure to cashbalances across global bank accounts.
- Effective hedging strategies can help mitigatemarket risks with real-time visibility into variousrisk positions, calculation of value at risk, andthe ability to test hedge effectiveness.