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.
© 2013 SAP AG. All rights reserved. 4
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
© 2013 SAP AG. All rights reserved. 6
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
© 2013 SAP AG. All rights reserved. 7
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
© 2013 SAP AG. All rights reserved. 8
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
© 2013 SAP AG. All rights reserved. 9
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
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
© 2013 SAP AG. All rights reserved. 11
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
© 2013 SAP AG. All rights reserved. 12
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
© 2013 SAP AG. All rights reserved. 14
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
© 2013 SAP AG. All rights reserved. 15
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
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
Commodity management specifics
© 2013 SAP AG. All rights reserved. 18
Financial Risk Management Exposure Management as a Central Component for the Risk Process
© 2013 SAP AG. All rights reserved. 20
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
© 2013 SAP AG. All rights reserved. 25
.
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
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
© 2013 SAP AG. All rights reserved. 28
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
© 2013 SAP AG. All rights reserved. 32
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
© 2013 SAP AG. All rights reserved. 33
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!
© 2013 SAP AG. All rights reserved. 34
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
© 2013 SAP AG. All rights reserved. 36
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
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
© 2013 SAP AG. All rights reserved. 38
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
© 2013 SAP AG. All rights reserved. 39
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
© 2013 SAP AG. All rights reserved. 40
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
“
© 2013 SAP AG. All rights reserved. 41
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
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
© 2013 SAP AG. All rights reserved. 43
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
Contact information
Anja Klitscher [email protected]
Solution Principal Treasury & Risk Management
SAP (Schweiz) AG
Althardstrasse 80
8105 Regensdorf
© 2013 SAP AG. All rights reserved. 46
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