Treasury and Risk - October 2019 Special Report

of political events), and increase business and shareholder value.

While only one piece of the puzzle, implementing business intelligence tools can help treasury teams better visualize currency risk and simplify the management of that risk. Bl tools can aid in monitoring and tracking KPls with the use of dashboards and reports; however, with this technology alone, many organizations are still unable to facilitate any sort of required logic or derivation of data. They are left only with visual representations of their exposure and risk with no way to explain what is behind the results.

To make sense of the metrics delivered from BI tools, modern treasury teams have been looking to currency analytics as the other piece needed to run a more successful program. Currency analytics effectively walk treasury and finance teams through the income statement, giving them a better understanding of how currencies are impacting the business by mining detailed currency data and providing intuitive and comprehensive analytical views.

By utilizing this combination of data
and logic delivered by currency
analytics and visualizations generat-
ed by Bl tools, treasury and finance
have the opportunity to not only lead
risk management processes more
effectively but also to answer any
FX-related questions that may arise
from the CEO, CFO and board.

An End-to-End Solution for
Managing the Entire Lifecycle
of Risk

While finding and implementing BI tools and currency analytics may sound like a daunting task, it doesn’t have to be. Kyriba’s FX risk management solutions take BI-enabled currency analytics to the next level, creating a seamless and scalable solution for treasury and finance that takes the complex task of managing currency risk and makes it easy by enhancing the way companies handle pre- through post-trade FX risk management activities.

Kyriba’s analytics offerings help multinational companies of all sizes maintain best practices over time and improve the economics and efficiencies of their FX risk management programs.

BI-enabled currency analytics enable organizations to manage their entire basket of currencies to the point where geopolitical events and currency volatility result in little to no impacts to their earnings. Such analytics include:

 P&L Analytics allow companies to see how currencies are impacting them throughout the income statement.

 Data Integrity Analytics help companies know they have the right data, that the data can be trusted, and enables treasury to run varying risk scenarios given the changing geopolitical landscape.

 FX Gain/Loss Analytics help explain how and where things went wrong and identify gaps in the program.

 The Cost and Risk Efficiency (CoRE) Analysis brings together a true story of the economics of a company’s program and helps weigh the cost vs. risk of hedging individual exposures.

As Brexit proceedings continue to go unresolved, the U.S.-China trade war heightens and the 2020 presidential election in the United States ensues, there is no way of knowing how the currency market will react — or, how those volatile reactions will impact corporate earnings. The only thing a company can be certain of is the ability of its own treasury team to manage corporate currency exposures and mitigate the resulting risk. And increasing hedge ratios, reducing EPS at risk and avoiding FX impacts can only be achieved with the 100 percent exposure visibility that comes from combining the power of business intelligence and currency analytics.