Treasury Management Systems
Having come through the global financial crisis, treasurers are now faced with challenges around centralizing treasury functions, complying with new regulations and accounting standards, and being prepared for external events – from counterparty risk, to Eurozone instability and commodity shocks.
The OpenLink Treasury Management solution for banks and corporations integrates everything from cash management to capital markets & funding, risk management and financial management. With our solution you can automate your business policies as system processes using a visual mapping tool. Once mapped, processes can be monitored in real-time to ensure compliance and demonstrate strong governance.
With in-house banking on the rise our solution enables you to formalize and manage internal banking relationships and policies including the application of interest, charges and fees. So treasurers get better visibility and control with transactions immediately reflected across in-house accounts.
OpenLink provides native hedge accounting capabilities including automated hedge effectiveness analytics and reporting – giving you the reassurance that earnings statements are being correctly reported.
Finally our scenario management capabilities and reporting are second to none enabling you to stress test your business against a variety of straightforward and complex scenarios. Equipped with an understanding of the potential impact of the full range of external risks to your business, you can plan more effectively.
Stress testing the business for all risk exposures globally
Firms are paying much more attention to stress testing – modeling hypothetical scenarios to evaluate the impact of possible future events. And they are looking to model increasingly complex scenarios to better understand their risks under a much wider range of circumstances, for example counterparty downgrade/failure, commodity shocks, currency exit from Eurozone as well as FX and interest rate movements.
Get a better understanding of future risk exposure
At OpenLink we provide stress testing and standard reporting to measure the impact of a variety of scenarios in the event of market disturbances; for example counterparty downgrade, a commodity shock, a country exit from the Eurozone as well as FX or interest rate movements.
Our simulation engine provides a powerful and consistent application of risk factor shocks regardless of market. Risk can be attributed to hypothetical movements of any magnitude including rates, credit, FX, equities, commodities and inflation.
By using OpenLink's best-of-breed risk modeling, simulations and analytics you get full visibility of the risks your business is exposed to across a variety of scenarios so that you can take control.
In-house banking increasing in complexity and administration
Firms are increasingly looking to centralize global treasury operations and provide in-house banking to divisions and subsidiaries. However, communication is informal via email and phone, and record keeping is based on spreadsheets. Furthermore requests for funds are often received outside business hours but require urgent senior level approval.
Automate in-house banking as mandated by corporate governance
With an in-house banking solution from OpenLink you can streamline and automate the process of setting up and managing internal banking relationships. Workflows can be created via a drag and drop user interface and the system allows for the enforcement of policies including for example the application of interest, charges and fees.
This provides transparency, visibility and control with transactions immediately reflected across in-house accounts. By automating your in-house banking processes you improve productivity to do more with less, and reduce the potential for fraud.
Hedge accounting is difficult to manage
In order to avoid earnings volatility, hedges that qualify as “highly effective” can be afforded hedge accounting treatment. However to implement hedge accounting requires a large amount of work documenting the hedge relationship and proving – both prospectively and retrospectively – that the hedge relationship is effective.
Measure pre and post trade hedge effectiveness to minimize earnings volatility
Our OpenLink pre and post trade analytics measure the effectiveness of hedges (under IFRS9, IAS39 or FAS 133) and pending the determination of their effectiveness, it can cause the appropriate hedge accounting rules to be invoked. If the hedge is later deemed ineffective the hedge accounting treatment is automatically withdrawn.
So you can automate hedging rules and methodologies to ensure that hedges are being correctly designated, giving you the reassurance that earnings statements are being correctly reported and subject to minimal volatility.
Cash forecasting across multiple divisions and subsidiaries requires extensive manual work and is error-prone
With declining cash flows, cash forecasting is a particular focus for boards. However, for firms with multiple divisions, cash forecasting is a particular challenge, as individual divisions have different processes and formats for reporting.
Get more control of global cash forecasting across all divisions of the global organization
Our treasury management solution allows you to create a standard format for divisions and subsidiaries around the world to report their cash forecasts. With more configurability and flexibility you can set it up to work the way your business is structured, and to view and analyze the data however you want to.
So you can increase productivity, get more control and visibility across the organization and improve compliance. Finally, faster and more accurate reporting enables you to make decisions more quickly.
Lack of definition of business processes impacts efficiency and compliance
Many firms have treasury processes that are implemented in an ad hoc fashion or must contend with multiple legacy systems often relying on inconsistent policies that individual team members need to follow. For example, routing payments for approval depending on value. People don't always follow processes, or interpret the process in different ways.
Automate processes to implement Best Practices treasury department policies
With OpenLink you can visually map business process workflows (e.g. payments being applied properly, processes for setting up bank accounts, processes for routing payments for approval depending on value) via point and click configuration, and access any data (e.g. reference, trade/deals, accounting) captured by the system for that workflow. Once created business processes can be executed consistently and monitored in real-time for compliance.
As a result you can improve productivity, minimize errors and reduce bank costs and finance charges; and it makes it easy to demonstrate to auditors that policies are being followed.
Regulatory changes impact hedge accounting
In order to avoid earnings volatility, hedges that qualify as “highly effective” can be afforded hedge accounting treatment. However to implement hedge accounting requires a large amount of work documenting the hedge relationship and proving – both prospectively and retrospectively – that the hedge relationship is effective. In addition evolving regulations and accounting standards (e.g. IFRS 9) for measuring hedge effectiveness make it more difficult to keep systems current with the latest rules and methodologies.
Measure hedge effectiveness and minimize earnings volatility
The OpenLink solution analyzes the effectiveness of hedges (under IFRS9, IAS39 or FAS 133) and invokes the appropriate hedge accounting treatment. It features our Hedge Analyzer module for robust hedge effectiveness testing, and provides complete transparency that enables users to drill into postings to verify all payment, accrual or valuation calculations on the trade.
The solution supports the statutory reporting required for hedge accounting.
So you can automate the application of hedge accounting rules and methodologies to ensure hedges are being correctly treated; giving you the reassurance that earnings statements are being correctly reported and subject to minimal volatility.
How can we help you?
Contact us for more information or to arrange a demo.
How can we help you?
OpenLink representatives are available worldwide to guide you in finding the right solution for your business. Call one of regional offices today with your questions
+1 516 227 6600
Marketing and Communications: +1 516 833 4509
Discover how a holistic view of treasury encompassing risk management, cash and collateral management can help corporate treasuries prepare for tomorrow.
Putting the 'Risk' in Treasury Management Systems
View new video on treasury trends and risk management.