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.
1 “Kyriba October 2019 Currency Impact Report.”
Exposure
Capture
Exposure Analysis
& Management
Valuation
& Accounting
Trade Execution
& Confirmation
Recommended
Hedges
Executed
Hedges
Management
End-to-End FX Risk Management
Business Intelligence & Reporting
®