Digitized Risk Management

   Digitized Risk Management
  • Treasury-and-Financial-Risk

In the current global marketplace, financial risk management has become a prioritized function for the treasury departments. As companies operate in an increasingly global environment, unlike the past, the risk-levels have widened, and robust risk management remains more or less a challenge for treasury professionals. Tumultuous economic conditions, fluctuating global currency exchange rates, unforeseen geopolitical developments, etc. lead to a considerable number of developments in the financial market continuously that reinforces the need for corporates to take on well-organized risk management strategies.

PwC report points out that there is a true transition of the treasury function into the role of a strategic advisor to the broader organization, which now focuses on value-adding activities outside the traditional mandates of working capital management and M&A support.

By taking advantage of the right technological tools, companies can ensure a smooth flow of the treasury processes, leverage the power of analytics, support the target operating model, and initiate efficient risk mitigation strategies.

VisionTree deploys SAP S/4HANA for Finance to address the changing priorities of treasury managers in terms of financial risk management. The common pain points of businesses in risk management include:

  • Difficulty of centrally managing exposure
  • Mitigate risk with forecasting and controlling FX
  • Fluctuation in commodity prices and contractual information
  • Lack of visibility into accurate and integrated current cash balances and liquidity positions

Treasury and Risk Management is an integrated module of SAP S/4HANA that enables integrated liquidity management, including cash flow analysis and business planning, and real-time visibility into cash positions and currency exposure helps businesses to reduce risk significantly.

With the SAP S/4 HANA as the digital core, Treasury Managers can leverage additional functionalities like:

  • Market data management: Foreign exchange rates, interest rates, basis spreads, and volatilities can be imported using the data feed or the file interface
  • Treasury Reporting: Comprehensive information about the financial status and the current status of credit lines through CDS queries
  • Transaction Manager: Processing the related financial transactions, from capture to transferring the relevant data to Financial Accounting
  • Risk Management: Comprehensive risk management through Market, Credit and Portfolio Risk Analyzer


Additionally, it offers integration scenarios with other SAP solutions, such as Trading Platform Integration, SAP Market Rates Management, SAP Multi-Bank Connectivity, and SAP Trade Repository Reporting by Virtusa.

VisionTree Venture enables businesses to leverage the power of SAP S/4HANA to streamline their treasury and financial risk management processes. We work with enterprises to increase productivity in the treasury department by automating processes and enabling collaboration to free up resources for high-value tasks. With our extensive experience in working with SAP S/4HANA, we assure our clients simple, tailor-made, and cost-effective implementation.

To learn more about harnessing the power of SAP S/4HANA in your treasury and financial risk management processes, please do get in touch with us. Connect to us for a quick consultation!

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2019-09-27T14:05:51-05:00By |Categories: Finance Experience|

About the Author:

More than 22 years of Professional Experience contributing to Enterprise Customers across 18 Countries in the position as Sales Director, Consulting Director, Management Consultant, CIO Advisory, Risk Management Expert & Strategic Investor.