Foreign Currency Risk Management

The foreign currency risk management enables you to gain an overview of the foreign exchange risk that your company is exposed to, as well as the hedging instruments that you used to mitigate that risk. You can review your balance sheet FX risk and determine your net open exposures (FX Risk).

Using the financial transactions provided for this process you can mitigate the FX risks.

The functionality helps you to automate labor-intensive processes, such as confirmation of financial transactions and accounting postings, giving you more time to focus on value-added activities. You can manage operational and accounting. The process includes the products FX spot transactions, FX Forward Transactions, swaps, nondeliverable forwards and FX options.

Key Process Steps Covered

  • Create financial transactions
  • Execute correspondence
  • Execute payments
  • Perform period-end valuation
  • Fix nondeliverable forward
  • Decide to exercise option
  • Transfer values to general ledger
  • Calculate and post realized profit and loss
  • Perform analytical and operational reporting

Benefits

  • Review balance sheet
  • Determine net open exposure within the Hedge Management Cockpit
  • Automate the management of foreign exchange instruments, including creation of financial transactions, confirmation of contract with counterparty, payments, and extensive accounting
  • Make better operational and strategic decisions using the comprehensive reporting and analysis tools
  • Improve internal operational compliance