Solution Overview Presentation - SAP Treasury and Risk Management

SAP Treasury and Risk Management
Solution Overview
Department, Board Area or Team Date
Agenda
1. Market Trends and Value Proposition 2. Solution Offering

2.1. Overview 2.2. Transaction Management 2.3. Exposure Management 2.4. Hedge Management 2.5. Risk Analyzers
3. Summary
SAP AG 2009. All rights reserved. / Page 4
The Evolving Role of Corporate Treasury
Today
Future

Management / Guidance
Management / Guidance
Decisions regarding strategy of financing and asset allocation Governance Risk and Compliance activities
Value increasing activities
Value increasing activities
Business Impact Liquidity Management Management of Financial risks Bank Relationship Management Asset und Pension Management
Transaction based activities
Transaction based activities Strategic partner of the CFO
supporting transactional activities Payment transactions Money market, FX and Derivative deals
Source: Der Finanzbereich im Umbruch (Dr. Michael Kieninger, Horvth AG, SAP Infotage 2007)
Does this Scenario Look Familiar?

CFO
Is our current approach process and risk effective and how do we benchmark ourselves against best in class treasuries?
Treasury Risk Controller

How much of our fx portfolio is hedged and are these hedges effective according to our hedge accounting policy
SALARIES
Group Treasurer
Im not sure if our forecast allows us to fund the upcoming acquisitions without external loans from our banks?
Trader
I cannot simulate risk scenarios and I am not able to generate ad-hoc overviews on key risk indicators. Furthermore I have to capture our deals manually three times in different systems
Cash Manager
Is this organization prepared to:
Increase process efficiency? Reduce finance operating costs? Optimize the global banking structure?
It takes weeks to reconcile account data across multiple banks to determine our company cash position
Inhouse Bank Mgr

My intercompany reconciliation and netting process is not integrated, not transparent and contains often errors. We never can build a payment factory on this fundament
AP/AR Manager
I dont have an integrated bank connectivity and this turns out to be a compliance issue. We need a higher degree of automation to be scalable
Banks
Subsidiaries
Challenges: Typical Barriers to Effective and Compliant Treasury Management
Lack of coordination across entities and departments Multiple payment locations and disbursement accounts Multiple charts of accounts in various locations Poor insight into overall company risk picture Poor insight into sources and uses of cash and their timing Incomplete insight into global cash positions
Fragmented and inefficient payment and cash management Paper-based and laborintensive Lack of standardization Fragmented, stand-alone systems Limited bank communications integration Weak integration with GL and AR systems
High Cost of Finance Operations Risk Awareness
Non-transparent Processes
What Our Customers Expect

Financial Excellence in Treasury Operations! Treasury Requirements
Transparency
Accurate, auditable accounting
Transparency
Compliance
Reliable, credible treasury reports

Global cash visibility
Segregation of duties
Efficiency
Accounting standards
Compliant reporting
Compliance
Efficiency
Streamline processes
Automate systems Integrated communications
Overcome Your Treasury Barriers with SAP
Insight & Control
Pinpoint risks and mitigate them Gain better insight into liquidity requirements Manage cash and improve returns

Efficiency
Create central payment factories Real straight-through processing for financial transactions Capture financial risk exposures from operational systems
Compliance
Establish greater control over outgoing payments Manage FX, interest rate and commodity risk and comply to regulatory standards Automation of internal controls (SOX)
IT Systems
End-to-end ERP-based treasury integration into purchase, sales, production and finance Reduce number of bank integrations and support costs through open standards
SAP Streamlines Finance Processes and Treasury Operations

CFO
Treasury Risk Manager

All lights are green. Our FX exposure is hedged and our sales revenue safe
I believe my treasury department is doing a great job!
Group Treasurer
Our liquidity is excellent - we can fund our next merger without external borrowings
SALARIES
Trader
Great reports and one single deal entry screen are supporting my day-to-day work efficiently
Inhouse Bank Manager

Our central payment factory is up and running and all processes are highly automated !
Timely cash and liquidity Forecasts Greater control over payments Reliable global cash management data Electronic bank integration Standardization and automation Integrated systems and processes
Cash Manager
We reconcile our account data across multiple banks to determine our company cash position in minutes
AP/AR Manager
Our payment process is transparent due to seamless integration from our ERP system into our banking software
Banks
Subsidiaries
Agenda

3. Summary
Treasury Applications from SAP Where we Came from
In-House Cash
SAP Business Suite
Liquidity Planner SAP ERP
Market Risk Management
Portfolio Analyzer
Money Market, Forex, Derivatives
Credit Risk Analyzer
R/3 Enterprise
IS-IS/DARWIN Project Market release for Loans, Securities, Real Estate Audit R/3 Launch 1996 1994 1993 1992
2001 2000 Today
R/2 Treasury
Cash Management Money Market, Forex, Loans
Financial Excellence with Treasury Applications from SAP

Treasury applications from SAP SAP Treasury and Risk Management
Risk Analyzers
Manage Global Financial Risks Optimize Debt and Investment Strategies
Market Risk Analyzer
Portfolio Analyzer
Exposure Management
Money Market Foreign Exchange Derivatives
Hedge Management
Debt Mgmt Securities Commodities
Transaction Manager
Manage Cash and Liquidity
SAP Cash and Liquidity Management

Cash Management Liquidity Planning
SAP In-House Cash Optimize Payments and Bank Communication

SAP Bank Communication Management

Risk Analyzers
Utilization: Formulas, Credit risk, Settlement risk Limit management: Limits freely definable, Multidimensional limits
Reporting
Portfolio Analyzer
Yield calculations: Money weighted, Time weighted, Modified Dietz method Benchmarking: Performance Indicators xxxxxxxxxxxxxxxxxxxxxxxx Ad-hoc reporting: Point & click, Unified databases, Position, P&L, Period, Cash Flow

Price calculator: NPV, Prices, Sensitivities Value at risk: Variance/covariance, Historic, Monte Carlo Simulation Simulate rates: What-if scenario, Relative, Absolute
Exposure Management
Centralized Database to gather group and version data and transfer to Hedge Management
Hedge Management
Administration of hedge plans, exposures, hedge items and hedging relationships
Reporting tools: SAP Query, ABAP List, Other 3rd-party providers, BI, Business Object Xcelsius and Dashboards Results database: Portfolio Hierarchy, Drill-down, Historic results
Transaction Manager
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
Management reports: Positions, Performance, Ratios, Compliance
Accounting: Flexible accounting determination, Accounting according to many international

accounting standards
Money Market

Foreign Exchange

Derivatives

Debt Mgmt

Securities

Commodities

Middle office: Risk exposure, Controlling, Compliance
Fixed term deposits Commercial Paper Repo
Spot Forward Swaps Options Futures
Cap Floor FRA Swaps Options Futures
Bonds Bank loans Commercial Paper Facilities
Bonds Warrants Stocks Certificates Repo Sec. lending
Futures Forwards Traded Options
Data export: Excel, Flat files, BI
Agenda

3. Summary
Instrument Support
Foreign Exchange
Money Market
Debt Management
Interest & Equity Derivatives
Securities (Investments)
Commodities
Fixed-term deposits (e.g., overnight deposits at notice) Commercial paper Repo Floating rate Any cash flows
Spot Forward Swap Vanilla options Barrier options (single and double) Compound options Delayed Delivery options Average rate options Basked options Exchange-traded options
Issued bonds Fixed/ floating/ zero interest, Bullet repayment/ with repayment/ ABS structures Fixed rate loans Floating rate loans Annuity loans Commercial Paper Facilities (bilateral or syndicated)
Cap Floor FRA Swaps Payer/Receiver, Fixed/Basis, Exotics (e.g. roller coaster) OTC options Security, Swaption, IRG Futures Exchange traded options
Bonds ABS /MBS /CMO Index-linked bonds Dual currency bonds Drawable bonds Warrant Bonds Stocks Shareholdings Subscription rights Investment certificates Repo/ Reverse Repo Security lending
Futures Forwards Traded Options
Transaction Manager Market Risk Analyzer Credit Risk Analyzer Portfolio Analyzer Reporting
Process Overview
Front Office

Mid Office

Back Office

Accounting
Reporting

Exposure analysis Decision support Comfortable deal entry Standing instructions On-line limit check Position reporting
Instrument pricing Risk analysis Sensitivity analysis
Flexible process definition Settlement Correspondence Interest rate adjustments Payments Alert monitor
Valuation according to several GAAPs in parallel areas Support for IAS 39 / US-GAAP and Hedge Accounting
Standard reporting Ad-hock reporting Controlling Limit reporting Management reporting
Transaction Manager Fully Integrated
Automatic posting
Valuation (parallel)
Automatic creation of correspondence
Automatic accrual/ deferral
Accounting Straight-Through Processing
Straight-through processing of financial deals is achieved in combination with a highly flexible accounting engine.
Real-Time update of your accounting position
Automatic
posting incl. flexible account determination
Hedge Accounting (e.g. FAS133/138, IAS39)

Support of several accounting standards in parallel
Simple Example Purchase of 100 shares at USD 90 per share = USD 9,000 9000 Stock price on valuation key date: USD 98 (market value)
write-up
no write-up
9800
9000
9000
IAS / US GAAP
German GAAP (HGB)
Gain Efficiency with Correspondence Monitor

Real Straight-Through Processing from deal capturing via new integrated Correspondence Monitor to parallel accounting with a highly sophisticated authorization concept behind.
Deal capturing Create / send correspondence Receive incoming correspondence Automatic matching Error handling / manual matching
Release process use customer defined channels, mediums and formats Fax, email, print and swift file transfers are preconfigured Predefined format (incoming and outgoing) for MT300, MT320 and free text MT399
Tracking of incoming correspondence use customer defined channels, mediums and formats Fax, email, print and swift file transfers are preconfigured Predefined format (incoming and outgoing) for MT300, MT320 free text MT399
Customizable matching proposal Automatic matching when message is coming in or going out possible
Correspondence monitor e.g. Navigate in all directions
Improved status tracking for the messages

Show all correspondence objects assigned to one deal Show matches Manual assignment of correspondence to deals Receive ACK and NACK messages
Process of Incoming and Outgoing Messages Using SWIFT Integration Package from SAP
Data from file adapter uploaded to TRM
SWIFT Integration Package put data on file adapter
Open SWIFT file envelope
Get file from SWIFT alliance gateway
Automatic matching process is triggered automatically whenever a file appears
PI saves file on file adapter
Integration package for SWIFT
Create message and send
SWIFT Integration Package picks up data
Create SWIFT file envelope
Send file to SWIFT alliance gateway
Creation of MT message automatically or manually in the correspondence monitor Save message on file server
PI picks up the data from the file server in predefined time intervals
SWIFT Integration Package is a PI box and the SWIFT gateway is another separate box.
Straight-Through Processing for External Deals

Alternative deal capturing by connection to Market Places
Automation
of download of FX transactions made on market places such as 360T, FXall or Currenex Available for FX spot, FX forward and FX options Possible to enter all data for the FX transaction with one interface
Bank A
Market Place
Bank B
Bank C
Managing Commodities and Financial Instruments Risk

All kinds of commodity types and hedging instruments can be managed in SAP Commodities (examples)

Crude Oil, gas, coal Metals including noble metals Corn, maize, soybean
Coffee, cacao, cotton, sugar

Orange juice, lemon juice Cattle (cows, pigs) Certificates on emission
Hedging Instruments

Futures and Traded Options Forwards Swaps (planning status) OTC Options (planning status)
Agenda

3. Summary
Exposure Management Example for Commodities

Commodity front office system - if needed
Treasury and Risk Management SAP ERP Operations SD, MM or GTM
Exposure Management
Hedge Management
Excel Spreadsheets Market Risk Analyzer Transaction Manager
Other sources of Exposures
SAP ERP Financials

Financial Risk Management Process Using Exposure Management
Risk identification
Build exposure positions
Lifecycle of Exposure Position
Deal request
Hedge Management
NPV /VaR calculation
Risk Dashboard
Gathering Data from from various source systems
Classify Exposure as forecasted transaction firm commitment and link to different risk factors like commodity price or foreign exchange risk (EUR-USD)
Storage and update of the lifecycle of the Exposure positions
Possibility to generate deal requests out of the Exposure position and send it to marketplace or front office system
Calculated exposures are available as hedged item in hedge management
Possibility to calculate various risk key figures like Net Present Value and Value at Risk on Exposure positions as well as financial transaction
Risk dashboard combining operational and financial Exposures
Agenda

3. Summary
Hedge Management
Hedging Item (Exposure) Hedging Instrument (Derivative)
Hedging Relationship
Effectiveness test /valuation
Hedge Accounting
Scope of SAPs Hedge Management Fair Value Hedge

Hedging Instruments

FX swap, FX forward FRA Interest rate swap Cross currency interest rate swap Commodity Futures and Forwards (EhP4) Other Product Types (e.g. Commodity Swaps) are in planning status
Effectiveness Calculation Methods

Net Present Value Method / Dollar offset Method Hypothetical Derivative Method Benchmark Method Regression Analysis (EhP 4)
Scope of SAPs Hedge Management Cash Flow Hedge

Hedging Instruments

FX swap, FX forward, FX options (plain vanilla and average rate), Collar FRA, CAP, FLOOR Interest rate swap Cross currency interest rate swap Commodity Futures and Forwards (EhP4) Other Product Types (e.g. Commodity Swaps) are in planning status

Net Present Value Method / Dollar offset Method Cash Flow Method Hypothetical Derivative Method Regression Analysis (EhP 4)
Scope of SAPs Hedge Management Hedge of a Net Investment

Hedging Instruments

Money Market Instruments Forward Exchange Transactions FX and Cross Currency Swaps (note 967104 for ERP2004/ERP2005) FX Options (note 967104 for ERP2004/ERP2005)

Net Present Value Method Cash Flow Method Spot Method Forward Method / All critical Terms match (note 967104 for ERP2004/ERP2005)
Hedged Items
Hedged Items are Exposures

From a manual entry Upload from Money Market Instruments Upload from Risk Objects Upload from FX-Exposure Management Upload from Exposure Management 2.0 Generation from FX Forwards (or from a rollover or premature settlement of an FX-Forward)
Effectiveness Testing - Process
Start date of the Hedging Relationship

Is the Hedging Relationship expected to be highly effective in the future?
1 1.
Balance sheet date

time
Was the Hedging Relationship highly effective in the past?
Is the Hedging Relationship expected to be highly effective in the future?

4 4.
Run the prospective effective assessment to prove if the hedging relationship is expected to be highly effective.
2 2.
Run the retrospective effective assessment to prove the past effectiveness of the hedging relationship. If the assessment has shown an effective hedging relationship, run the Effective Measurement to determine the exact amount to be posted to OCI/Equity or P/L.
3 3.
Run the prospective effective assessment to prove if the hedging relationship is expected to continue to be highly effective.
Effectiveness Test - Regression Analysis Report
Regression report contains Data used for analysis, Regression basic statistics, ANOVA and Confidence interval and range
Integration into Accounting
Classification of the valuation results

Effective portion Ineffective portion Free standing portion Time value
Reclassification when exposure hits earning

Manual reclassification Automatic distribution over a user defined time interval Partial reclassification (if exposure changes or is overhedged)
Valuation Posting Logic with FAS133/IAS39

1 2 3 4
Determine derivatives fair value Determine value of any free-standing portion of the derivative Determine OCI/Equity target balance and amount to be posted to OCI/Equity Post remainder of clearing OCI/Equity distribution account to P/L (ineffective portion of the hedge)
Distribution
FX - Balance Sheet Account

1 Delta NPV
2
OCI/Equity - Distribution Account

Free-standing portion Effective portion Ineffective portion [ Delta time value ] 0,00 0,00
1 Delta NPV
3
4 5
P/L
2 4 5
OCI/Equity
Free-standing portion Ineffective portion [ Delta time value ] 3 Effective portion
Expiration and Reclassification
When?
Hedge accounting ceases prospectively when any of the following occurs: hedge fails an effectiveness test the hedged item is sold or settled the hedging instrument is sold, terminated or exercised management decides to revoke the designation for a hedge of a forecasted transaction, the forecasted transaction is no longer highly probable. In customizing you can define, what should happen with the hedge relationship in the case of infectivity to dissolve or to dedesignate
How?

Manually by reclassifying all or parts of the equity capital balances at once or one-off the part of it or Automatically by reclassifying over multiple periods on a linear basis
What happens with the hedging instrument?
As in IAS 39: All future fair value changes in a derivative hedging instrument are recognized in the income statement. Future changes in the fair value of any non-derivative hedging instrument are accounted for as they would be without hedge accounting.
What happens with the hedged item?
Future changes in the fair value of the hedged item are accounted for as they would be without hedge accounting
Agenda

2.5.1. Introduction 2.5.2. Credit Risk Analyzer 2.5.3. Market Risk Analyzer 2.5.4. Portfolio Analyzer
3. Summary
Risk Analyzers Risk Analytics
Risk analytics is clever maths, but the hard slog is the integration.
Risk Magazine
Value-at-risk Net present value Exposures Multidimensional limit management Portfolio Returns
What-if analysis Back-Testing Sensitivity analysis Market data shifts and scenarios Portfolio Benchmarking
SAP Modules in Treasury Analyzers
Portfolio Analyzer

Analyzers
Market Data
FX Rates Yield Curves Indices Volatilities
Transaction Manager
Money Market Securities Derivatives Forex Commodities
REPORTING: Externally maintained transactions
Businesspartner
Cash Managem.
Integration
General Ledger
Agenda

3. Summary
Process in Credit Risk Management

End-of-Day Processing
T r a n s a c t i o n
M a n a g e
Request
Limit check
Attributable amount
O.K.
Limit
Deal
Reporting
Exposure Limit Partner 8.5 10.5 Euro Bank 632.3 700.7 United Bank 688.1 716.7 Carlton 12.3 4.8 Brightline Free Limit 2.0 68.4 28.6 -7.5 Util. in % 80.9% 90.3% 96.0% 256.3%
m
e n
t
Start of workflow, when limit is Breached
Relative Limits
Choose Utilization Portfolio
Utilization Key Figure
Choose Reference Portfolio
Reference Key Figure
Define Limits Percentage
Define Limits Absolute
Can choose the Utilization Portfolio and the Reference Portfolio. They can be same or different.
Can compare same key figures from different portfolios or Different key figures from the same portfolio
Limits can be defined as Percentage, Absolute Or Both Percentage and Absolute
Agenda

3. Summary
Market Risk Analyzer Risk Controlling

SAP
EDT
CM CML TM
Datapool
NON SAP External
Market data
Results
NPV, VaR, Exposures
Analysis/Reporting/Planning

Online data feed Simulated Shifts Scenarios
Pricing Engine NPV, VaR ...
Risk Hierarchy
Defining the risk hierarchy and evaluation structure
Consolidation LEVEL Risk factors Consolidation LEVEL 1 Money market EUR
Interest EUR
Consolidation LEVEL 2
...
3-month
6-month
FIBOR
FIBOR
EUR
EUR EUR
12-month FIBOR 1-year 3-year SAP USD GBP FIBOR FIBOR Stock Spot Spot
EUR EUR
Capital market EUR Stocks
Currencies
GBP GBP
Currency
3-month LIBOR 6-month LIBOR
Interest GBP Interest Swap USD
1-year
1-year
Swap
Swap
USD
USD
Net Present Value Concept
Transaction data

Calculation
Mark-to-market Sensitivities Duration Convexity Exposure Crash/stress tests

Evaluations
Company Portfolio Profit center Product
LEVEL 2 Trading: Interest products
Linear Debts Assets ....
Non-linear Options Caps ....
LEVEL 1 Trading: Bonds
LEVEL 1 Trading: Swaps
Base portfolio Bonds/Frankfurt
Base portfolio Bonds/New York
Market data
10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0
Yield curve 5 (+)
Current. yield curve
Yield curve 6 (long-term)
Risk management
NPV
1M 2Y 4Y 6Y 8Y 10 Y
Saved market prices Real-time market prices Flexible scenarios Rule shifts
Risk
Price calculator
(user exit)
Value at Risk
Transaction data

Calculation
Historical simulation Monte Carlo

Evaluations

Bal. sheet Debts Assets ....
Non-linear Options Caps ....
Full valuation Delta method Delta/gamma method
Variance/covariance Backtesting
No.
1 2 3 4 5 6 7 8 9 10 11 12 13

Company Portfolio Profit center Product
LEVEL 2 Trading: Interest products
LEVEL 1 Trading: Bonds
LEVEL 1 Trading: Swaps
Base portfolio Bonds/Frankfurt
Base portfolio Bonds/New York
Historical market parameters
Date
Feb 81 May 81 Mar 80 Feb 90 Feb 80 Feb 74 Jun 82 May 83 Oct 72 Feb 94 May 79 Oct 79 Feb 85

NPV
483.9 524.8 530.6 538.9 543.8 546.8 557.5 559.8 560.5 562.6 564.2 565.5 569.1

Risk
-134.3 -93.3 -87.5 -79.2 -74.3 -71.3 -60.6 -58.3 -57.7 -55.5 -53.9 -52.6 -49.0

Confidence Interval
99.0%
Risk management
97,5%
50 45 40 35
95.0%

30 25 20 15 10 5 0 < 500 <-75 <-45 <-35 <-25 < -95 < -85 < -65 < -55 <-15 < 15 < 25 < 35 < 45 < 55 < 65 < 75 < 85 <-5 <5
Market interest rates Exchange rates Stock prices Volatilities Correlations
Price calculator
(user exit)
Market Risk Analytics Net Present Value (NPV) Calculation

Net Present Value Calculation
Linear Instruments
Non-Linear Instruments
Fixed cash flows

Discounting with zero bond discounting factors of the relevant yield curves
Variable cash flows

1.Calculation of forward rates using the assigned yield curve 2.Calculation of future cash flows 3.Discounting Swaps, FRAs Straight bonds, Fixed-rate loans, Money market
Uncertain cash flows

Option price formulas, for example: Black & Scholes Binomial (C-R-R) Garman/Kolhagen Hull-White Caps/Floors Options Swaptions
Floating rate bond, Variable loans

Market Risk Analytics Value at Risk

Calculation Alternatives
Value at Risk
Methods and Algorithms
Historical Simulation
Monte Carlo Simulation
VarianceCovariance
(aka Analytical Method)
Full Valuation Delta Approach Delta-Gamma Approach
X X X
X X X X X
Reporting & Backtesting

Analysis of risk factor contributions
VaR Simulation Approaches

Simulated changes to risk factors Changes to present values of positions Distribution of position changes
USD interest rate
Frequency
Present value
EUR/USD
Confidence interval
Risk
Opportunity
Delta/Gamma DowJones
VaR
1 2 3 4
Position
Market Risk Analytics Reporting Results Database (RDB)

Analyzer Information System (AIS)

Results Database (RDB)
RDB is used to store calculated key figures for later evaluation Key figures are calculated in an endof-day batch run Stored results remain available and can be archived Key figures are stored for individual transactions as well as aggregated according to desired portfolio hierarchies RDB reports are based on the AIS
02-28-05
Portfolio Hierarchy B Key Figure Set 2
Portfolio Hierarchy B Portfolio Hierarchy B Portfolio Hierarchy A Key Figure Set 1
12-19-05 12-18-05 Key Figure Set 2 Key Figure12-17-05 Set 2
Portfolio Hierarchy B Portfolio Hierarchy B
01-31-05 Key Figure12-31-05 Set 2

Key Figure Set 2
Results Database Risk Cockpit
Compliance Reporting IFRS 7 Reporting Categories Market Risks

Standard reports for compliance to IFRS 7 Market risk section. Reports related to exposures for:

Currency risks Interest rate risks
Fair Value Changes reports for risks:

Currency risks Interest rate risks Commodity price risks
Security price risks
Agenda

3. Summary
Portfolio Analyzer
Investment strategy
Determination of benchmark Improvement and alignment
Building organizational structures Asset allocation Business transactions
Reporting and revision Risk adjustment Performance measurement Benchmarking
Portfolio Analyzer
Performance Analytics Benchmarking Reporting
Agenda

3. Summary
Quick Facts SAP Treasury and Risk Management
The SAP Treasury and Risk Management application is part of Treasury applications from SAP
The application helps you make more effective decisions utilizing timely information on current market conditions
It lets you optimize your hedging and risk management processes through exposure management for operational FX and commodity exposures
SAP Treasury and Risk Management increases transparency by having operational and treasury exposures evaluated for market risk It supports standard financial instruments and offers integrated and automated straight-through processing, as well as state of the art risk management capabilities
Furthermore, the application helps to comply with legal regulations and compliance requirements
Further Information
SAP Public Web
http://www.sap.com/treasury
(log-on required)
SAP Service Marketplace
https://service.sap.com/erp-treasury
Documentation on SAP Help Portal
http://help.sap.com
(SAP ERP >> SAP ERP Central Component >> SAP ERP Enhancement Packages)
Training / SAP Education
http://www.sap.com/education
User Groups

http://www.asug.com http://www.dsag.de http://www.sap.com/communities/usergroups.epx for more
Contact
Your SAP Account and Consulting Engagement Manager
Thank you!

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SAP Treasury and Risk Management

Department, Board Area or Team Date

1. Market Trends and Value Proposition 2. Solution Offering

SAP AG 2009. All rights reserved. / Page 4

The Evolving Role of Corporate Treasury

Value increasing activities

Value increasing activities

Transaction based activities

Transaction based activities Strategic partner of the CFO

Does this Scenario Look Familiar?

Treasury Risk Controller

Inhouse Bank Mgr

Challenges: Typical Barriers to Effective and Compliant Treasury Management

High Cost of Finance Operations Risk Awareness

SAP AG 2009. All rights reserved. / Page 7

What Our Customers Expect

Accurate, auditable accounting

Reliable, credible treasury reports

SAP AG 2009. All rights reserved. / Page 8

Overcome Your Treasury Barriers with SAP

Insight & Control

SAP AG 2009. All rights reserved. / Page 9

SAP Streamlines Finance Processes and Treasury Operations

Treasury Risk Manager

I believe my treasury department is doing a great job!

Inhouse Bank Manager

SAP AG 2009. All rights reserved. / Page 10

1. Market Trends and Value Proposition 2. Solution Offering

SAP AG 2009. All rights reserved. / Page 11

Treasury Applications from SAP Where we Came from

SAP Business Suite

Liquidity Planner SAP ERP

Market Risk Management

Money Market, Forex, Derivatives

Credit Risk Analyzer

2001 2000 Today

SAP AG 2009. All rights reserved. / Page 12

Financial Excellence with Treasury Applications from SAP

Manage Global Financial Risks Optimize Debt and Investment Strategies

Credit Risk Analyzer

Market Risk Analyzer

Manage Cash and Liquidity

SAP Cash and Liquidity Management

SAP In-House Cash Optimize Payments and Bank Communication

SAP Bank Communication Management

SAP Treasury and Risk Management

Market Risk Analyzer

Management reports: Positions, Performance, Ratios, Compliance

Accounting: Flexible accounting determination, Accounting according to many international

Middle office: Risk exposure, Controlling, Compliance

Fixed term deposits Commercial Paper Repo

Spot Forward Swaps Options Futures

Cap Floor FRA Swaps Options Futures

Bonds Bank loans Commercial Paper Facilities

Bonds Warrants Stocks Certificates Repo Sec. lending

Futures Forwards Traded Options

Data export: Excel, Flat files, BI

SAP AG 2009. All rights reserved. / Page 14

1. Market Trends and Value Proposition 2. Solution Offering

SAP AG 2009. All rights reserved. / Page 15

Interest & Equity Derivatives

Futures Forwards Traded Options

Instrument pricing Risk analysis Sensitivity analysis