Finanzielles Riskomanagement als zentrale Aufgabe des ... · Finanzielles Riskomanagement als zentrale Aufgabe des Treasurers SAP Financial Excellence Forum 2013 11. ... (SD) SAP

Finanzielles Riskomanagement als zentrale Aufgabe des

Treasurers

SAP Financial Excellence Forum 2013 11. April 2013

Anja Klitscher

SAP (Schweiz) AG

© 2013 SAP AG. All rights reserved. 1

Managing Treasury Today Global Treasury Survey 2010 – PWC Study 2010*

Today’s Perspective on Treasury

Raised profile

Nearly 80% of participants believe that the financial crisis

has won them greater boardroom attention.

Value recognised

Nearly 70% of participants believe that the crisis has

highlighted the value they create within the business.

“

The valuable contribution of the treasury function is now better understood, as are the

disastrous consequences if it fails – now is the time to secure investment in treasury.

Back to basics

The proportion of participants rating cash management and

working capital management as highly important has more

than doubled (from 35% pre-crisis to more than 70% during

and after).

On top of exposures

Risk management tops the list of priorities for the future.


Benefits and Best Practices of Best Run Requires Connectivity and Coordination across Silos

In-House Banking

& Payment

Cash Mgmt

Risk Mgmt

Reduce IT Costs

Integrated risk, cash and liquidity management

Natively integrated with general ledger

Single point of connectivity to multiple banks

Optimize Payments and Bank

Communications

AR, AP and treasury activities streamlined

through automation and workflow

Integrated treasury systems and GL ensure

accurate reporting and compliance

Effective Financial Risk Management

Timely insight into risks across portfolio

Robust risk management systems

Proper hedging strategies in place

Optimize Debt and Investments

Low interest on borrowings

High interest on investments

Banks

Banks

Better Visibility of Cash

and Liquidity

Complete visibility into global

liquidity

Low banking costs and higher

returns on cash

Compliant Reporting

Timely insight into cash, liquidity and risks

Management and statutory reporting

Integrated cash, liquidity and treasury and financial risk management. One open platform to enable seamless

integration of treasury with your banks. Native integration with the general ledger, financial reporting and compliance

processes.

Agenda 1. Manage Cash and Liquidity

2. Manage Debt and Investment Strategies and Financial Risk

3. Control and Optimize Payments and Bank Communication

4. Why SAP?

5. Wrap-up


Manage Cash and Liquidity Process Overview

Cash and liquidity management provides visibility into and control over sources and

uses of cash, manages cash flows and forecasts, and manages cash to ensure the

enterprise has sufficient liquidity to fund its operating activities.

Gather Inputs Statistical Modeling Publish Forecast Finalize Forecast

Process steps

Reconcile database

for cash forecast Forecast short-

term liquidity

Operational cash

flow analysis

Plan mid- and long-

term liquidity

Capture data from multiple systems – sales orders, SRM, AR, AP, and bank ledgers

Create and update forecasts

Reconcile plan movements with actual

Analyze Bank status

Monitor incoming cash flows from receivables

Daily cash position, balances, transactions on bank accounts

Short-term forecast including sub-ledgers

Primary Plans: sales, production planning, balance sheet, income statement (e.g., yearly)

Convert financial (primary) planning to treasury (secondary) planning

Determine planned cash flows over next period

Analyze operational cash flows

3 2 1 4


Key Instruments of SAP Cash and Liquidity Management

Cash and Liquidity Management Decisions Are Based on

Bank

accounts

In-House

cash banks

Bank

clearing

accounts

Payments

in transit

Treasury

Deals Memo

records

Intra-day

bank

statements

…

Customer/Vendor-

open items

Blocked items

Down payment

requests ...

Disputes Earmarked

funds

Real estate

…

Purchase

requisitions

Purchase orders

Sales orders

…

Logistics Financials Industry

Solutions Financials

Non-

SAP Non-

SAP

Non-

SAP

Cash Position Liquidity Forecast

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Reporting with SAP BusinessObjects Cash and Liquidity Reporting Enabled by SAP BusinessObjects

SAP BusinessObjects Dashboards

(formerly Xcelsius) can be

generated using the SAP Treasury

and Risk Management application

to provide visualization of cash

positions


Starter Kit for Liquidity Planning Overview

• Jumpstart the implementation of a

liquidity planning solution

• Addresses the needs of treasury

and the CFO

• Pre-built components with best

practices for better results

• Implement as new installation, or

incorporate into existing SAP

BusinessObjects Planning and

Consolidation, version for SAP

NetWeaver deployment

• System independent: Flat files,

SAP ERP Financials, other ERP

systems




4. Why SAP?

5. Wrap-up


Optimize Debt and Investment Strategies Process Overview

■ Collect Cash Data of today

■ Create and update forecasts

■ Take investment or borrowing decision according to the companies Treasury guidelines

■ Take care of limits, e.g., on counterparties

■ Determine best options based on cost of capital or best risk-adjusted investment returns

■ Execute financial transaction

■ Generate Correspondence

■ Execute Payments

■ Execute postings, valuations and accruals

■ Produce performance

analysis compared to defined benchmark

■ Control Cash reporting

■ Monitor capital structure for best options

■ Monitor investment portfolio for performance

■ Monitor counterparties for risk exposure

SAP Treasury and Risk management, combined with other SAP Treasury applications,

provides visibility into anticipated cash balances so that treasury managers can optimize

investment returns. It also helps monitor and control investments and portfolio risks.

Process Steps

Cash

Management

Data

Investment or

Borrowing

Decision

Deal Execution

and accounting

3 2 1

Performance

Analysis

4


Credit Risk Analyzer

Utilization: Formulas, Credit

risk, Settlement risk

Limit management:

Limits freely definable,

multidimensional limits

Market Risk Analyzer

Price calculator: NPV, Prices,

Sensitivities

Value at risk: Variance/covariance,

Historic, Monte Carlo Simulation

Simulate rates: What-if scenario,

Relative, Absolute

Portfolio Analyzer

Yield calculations:

Money weighted,

Time weighted,

Modified Dietz method

Benchmarking:

Performance Indicators

xxxxxxxxxxxxxxxxxxxxxxxx

Front office: Position and deal reporting, Deal capture, Exercise, Dealer slip, Valuation tools,

Online limit check

Back office: Standing instructions, Correspondence Monitor, Netting, Settlement, Rate fixing

(interest, FX), References, Corporate actions, Process monitors

Accounting: Flexible accounting determination, Accounting according to many international

accounting standards

Spot

Forward

Swaps

Options

Futures

Foreign

Exchange Bonds

Bank loans

Commercial Paper

Facilities

Debt Mgmt Securities

Bonds Warrants Stocks Certificates Repo Sec. lending

Derivatives

Cap Floor FRA Swaps Options Futures

Money

Market Fixed-term

deposits Commercial

Paper Repo

Commodities

Futures

Forwards

Traded Options

OTC Options

Swaps

Transaction Manager

Hedge Management Exposure Management

Centralized Database to gather group and

version data and transfer to Hedge Management Administration of hedge plans, exposures, hedge

items, and hedging relationships

Risk Analyzers

SAP Treasury and Risk Management

Reporting tools:

SAP Query, ABAP List, Other

third-party providers, BI, SPA

BusinessObjects Dashboards

and Xcelsius®

Middle office:

Risk exposure, Controlling,

Compliance

Management reports:

Positions, Performance, Ratios,

Compliance

Ad hoc reporting:

Point & click, Unified

databases, Position, P&L,

Period, Cash Flow

Results database:

Portfolio Hierarchy, Drill-down,

Historic results

Data export:

Excel, Flat files, BI

Reporting


Commodity Price Volatility Is Increasing

Source: Commerzbank /Wirtschaftswoche – Commodity radar screen for October 2010

Commodity Price Volatility is

constantly increasing for

commodities like oil, copper, lead,

zinc, wheat, etc.

Volatility is significantly higher than

for currencies or interest rates

This has a high impact on the profit

of many companies

Calculating the material cost for end

products becomes difficult

Liquidity and cash planning

becomes challenging

Hedging with financial derivatives

can be a strategy to manage the

challenges


Commodity management – our solution platform

Materials

management (MM)

Sales and

distribution (SD)

SAP Treasury and Risk Management application

Commodity pricing and invoicing

(CPE)

Global Trade

manage-ment

(GTM)

Tra

din

g fro

nt o

ffic

e

(part

ner-

enable

d)

Commodity management specifics


Commodity

management

specifics

Quality

management

Production

planning

Supply chain

management

Transportation

management

Global trade

services

Accounting (financials and controlling: FI/CO)

More

SAP BusinessObjects portfolio



Financial Risk Management Exposure Management as a Central Component for the Risk Process


Hedging Relationships and Categories for Cash Flow, Fair Value and Net Investment Hedges

Hedging Item (Exposure) Hedging Instrument (Derivative)

Hedging Relationship

Effectiveness

test /valuation:

retrospective /

prospective

Hedge Accounting including FAS133 / IAS39

• Money Market Instruments

• Risk Objects

• FX-Exposure

• Generation from FX Forwards

• manual entry

• FX Swap

• FX Forward

• FRA

• IRS, CCS

• Commodity Future

• Commodity Forward

• NPV Method, Hypothetical Derivative Method, Benchmark Method, Regression Analysis


Report the Key Figures of Risk Management via Risk Cockpit


Optimize Debt and Investment Strategies Integration Aspects


.

SAP brings software and services together in a new offering that

gives you essential treasury functionality quickly and affordably

Preconfigured software to

eliminate the guesswork

Rapidly delivered in as

little as two months, using

SAP Consulting

An affordable priced

solution

Establishes a footprint in

treasury that can be

expanded

Analyzer Tools Transaction Mgr. Correspondence

& Reporting

Best Practices SAP Consulting

ERP

Integration

SAP

Treasury and

Risk

Management

rapid-

deployment

solution

Preconfigured Treasury Software and Services Enabling

Rapid Deployment Solutions

SAP Treasury and Risk Management

rapid-deployment solution

SAP Commodity Risk Management

rapid-deployment solution




4. Why SAP?

5. Wrap-up


Payment Solution Provided by SAP

SAP ERP

GL

Payroll

Treasury

In-house

cash

SAP

Integration

Package for

SWIFT

Aggregate

Payments

Approval

Workflow

Digital

Signatures

Transmit Payment

SAP Bank Communication Management

Receive Status Report

Payment

Medium

Workbench

Payment

Run

Includes

SEPA

Package

from SAP*

Mobile Use Case


Features: Compliance

Increased compliance

• Multi-eye and individual release

procedures for payment approvals

• Personal digital signatures for outgoing

payments for internal audit

• Integration to the component

SAP BusinessObjects Global Trade

Services, in order to check incoming and

outgoing payments against sanctioned

party list screening and embargo lists


SEPA Package from SAP

SAP appreciates and supports the SEPA framework of the European Payment Council, improving straight-

through processing and allowing increased transparency into payment flows

SAP’s Business Suite is already enabled to help customers benefit from the new regulatory

A dedicated SEPA package for the SAP Business Suite has been available since the end of 2007

SAP’s SEPA Package is available for all SAP customers with maintenance contract free of charge (R/3

Enterprise onwards)

Support of new payment formats and instruments in SAP ERP

XML enablement of the new standard European SEPA payment formats

SEPA Credit Transfer based on EPC Rulebook 4.0

SEPA Direct Debit based on EPC Rulebook V.3.3 (Core) and V.1.2 (B2B)

Management of SEPA direct debit mandates

Support of IBAN and BIC

SEPA Support of MT940 Bank Statements

References

TreasuryToday’s

Adam Smith Award Winners 2009 and 2010

for the Best SEPA Solution…

…using SEPA Package from SAP!


Payment Factory with SAP Bank Communication

Management and SAP In-House Cash

* www.swift.com/solutions/connectivity/connectivity_products/service_bureau/SB_directory.page

Corporate Client

Payments

Compliance

Subsidiary

Subsidiary

SAP

Bank

Communication

Management

SAP In-House

Cash

Accounts

Payable

Accounts

Receivable

Treasury

Manual Payments

SAP Integration Package for SWIFT

SAP Middleware

SAP ERP Subsidiary

SAP Business Package for EBICS

Financial Services Network

FSN Connector


Business Benefits SAP In-House Cash

• Reduce physical cash transfers by internal netting

• Reduce number of bank accounts

• Reduce administrative overhead

• Minimize netting process times

• Save bank fees for bank accounts and payment

transactions

• Avoid cost for external cross-border payments

• Reduce float and value date losses

• Gain more interest keeping cash within the group

• Reduce hedging deals concentrating exposure within

the group

• Reduce hedging cost using economies of scale

• Improve competitive position in external money

markets

Lower internal cost

Lower external cost




4. Why SAP?

5. Wrap-up


Manage Global Financial Risk

Process steps

The treasury applications from SAP provide robust functionality that enable companies to identify and quantify

their exposure to foreign exchange, interest rate, commodity price, and counterparty risk, and take steps to

mitigate them.

A sales order is entered in a system, which is in foreign currency. This results in foreign currency exposure.

“What-if” scenarios

Capture and

Assess Risk

Exposure

Implement

Risk-

Mitigation

Strategies

Manage

Hedges

Financial

Reporting

Risk

Reporting

The Treasury Manager has to evaluate the exposure to decide if this exposure requires hedging

Evaluate hedging strategies

If the exposure is relevant for hedging, it has to be allocated to a specific hedge plan for tracking and compliance

The Treasurer has to hedge this exposure in market using a derivative, which will offset the market risk

The hedging instrument (derivative) has to be linked to exposure to calculate the effectiveness of the hedge

The effectiveness test results show if the hedge will effectively minimize the risk over the given period of time

The Treasurer has to maintain documentation, accounting entries for the hedge for compliance

Possibility to calculate various risk key figures like Net Present Value and Value at Risk on Exposure positions as well as financial transaction

3 2 1 4 5


Why SAP for Treasury Management?

Lower risk

Hedge management integrated with financial accounting, reporting, and internal controls

SAP ERP Financials in use at thousands of global companies

Lower TCO

Native/pre-built integration reduces implementation and support cost

Transactional integration with SAP General Ledger ensures highest level of financial reporting accuracy

Comprehensive Solution

Comprehensive treasury suite across cash and risk management

Only vendor that provides cash pooling, integrated multi bank gateways, and allocation system for in-house banking

Proven Value

Customers realize improvements in risk mitigation and reduced costs

High-value services to ensure delivery of your project


Customers Drive Value Comprehensive, Integrated

Treasury

“I have not found

another company

that processes

payments as

efficiently as we do.

Certainly the tools

we use from SAP are

an important reason.”

Johan Bergqvist, Cash

Manager, TeliaSonera

Group

“

Treasury Applications from SAP

help speed Cash Flow and lower

operating expenses

Complete coverage of Treasury

Applications from SAP

Integrated support and

enhancements for all key

software from one single vendor,

SAP

Tight integration with other

treasury applications from SAP

and with the SAP ERP

application

Overcome lack of control over

external banks that manage

payments

Improve efficiencies and reduce

risk of exposure by bringing

payments functionality in-house

“SAP Treasury and

Risk Management

has completely

fulfilled our

expectations.”

Peter van Rood,

Group Treasurer,

AkzoNobel N.V.

“ “By bringing intragroup

payments in-house with SAP

In-House Cash, we have

been able to reduce bank

fees, minimize costs

associated with foreign

exchange rates, and

significantly lower our risk as

an enterprise operating

globally..”

Gerd Klevenz, Head of

Treasury Operations, SAP AG

“


SAP Customers Are Driving Value Through

Financial Excellence Today

Manage Risk and Compliance

Treasury and Financial Risk Management

Invoice to Pay

Receivables Management

Optimize Financial

Performance

Accounting and Financial Close

http://www.tsocorp.com/




4. Why SAP?

5. Wrap-up


6 Key Points to Take Home

Be compliant and gain efficiencies by using an integrated approach for Treasury

Management in a real Straight-Through-Processing

SAP Treasury Applications drives customer value in treasury, financial risk, cash and

bank communication management

SAP Treasury Applications are an integrated part of SAP ERP Financials

Using an integrated Treasury Solution supports the overall IT trend of harmonizing

the system landscape and the application variety

Treasury Management with SAP Applications is a solution portfolio

Implementing SAP’s treasury applications leverage your overall SAP investments

you have made

1

2

3

4

5

6


Thank you!

Contact information

Anja Klitscher [email protected]

Solution Principal Treasury & Risk Management

SAP (Schweiz) AG

Althardstrasse 80

8105 Regensdorf

mailto:[email protected]


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Finanzielles Riskomanagement als zentrale Aufgabe des ... · Finanzielles Riskomanagement als zentrale Aufgabe des Treasurers SAP Financial Excellence Forum 2013 11. ... (SD) SAP