A complete solution to manage financial risk
Implement a structured and systematic approach to risk management and hedging to identify key risk drivers and optimally manage FX and interest rate risk to realize gains and avoid losses during your day-to-day trading activities.
Connect your ecosystem
Integrations to retrieve all essential FX data
- Facilitate automation by connecting to all relevant data sources (e.g., any ERP, SAP Business Warehouse, and more) and consolidate group-wide exposure data
- Supplement data as needed via uploads and/or central and local data-inputs
- Integrate market data sources or allow the solution to calculate volatilities & correlations
- Benefit from automated, two-way connectivity to and from trading platforms (send out hedge requests and retrieve traded deals)
Identify key risk drivers
Exposure forecasting & analysis
- Cover the short-term by combining financial assets & liabilities with data from ERPs (e.g., AP/AR, orders, actual cash flows) or other sources
- Forecast the long-term by translating budget data into planned exposures or apply anticipated growth rates to historical, actual cashflows to ‘build’ your exposure
- Analyze exposures per entity, business unit, division, or on group-level
Automate hedging & mitigate risk
Derivative dealing & management
- Leverage system-generated hedge proposals to reduce your exposure
- Ensure compliance with treasury guidelines and limits via check/approval workflows
- Benefit from end-to-end processing with any electronic trading platform (e.g., 360T, FXall, Bloomberg)
- Automatically create ‘back-to-back’ IC-deals when centrally hedging local exposures
- Ensure hedged items and hedges are completely linked via ‘post-trade’ fields
- Utilize customizable FX/IR and commodity deal types
- Perform mark-to-market valuations for plain-vanilla instruments
- Scenario analysis by simulating hedges and their effect on exposure and risk
Measure the impact of your hedging strategy
- Use the variance/covariance approach or Monte Carlo simulations
- Consider currency correlations
- Calculate value-at-risk and/or cashflow-at-risk (CfaR)
- Use Incremental CfaR to evaluate the impact of hedging a particular currency on risk
- Flexibly define parameters such as risk horizon, holding period, and confidence interval
Achieve cost-optimal hedging
Hedge portfolio optimization
- Identify cost-optimal hedges for any desired level of risk (= absolute VaR/CfaR)
- Simulate hedging costs (“cost of carry”) for any selected level of risk reduction
- Flexibly combine fixed ratios with hedge portfolio optimization
- Minimize the number of necessary hedge deals and/or volumes
- Make informed decisions and implement the hedging strategy that best balances cost and risk mitigation
Create powerful insights
- Benefit from plug-and-play base exposure reports
- Use self-service-BI (powered by Nomentia Data Cube) for flexible analyses
- Create powerful dashboards using third-party BI tools such as Microsoft PowerBI
- Easily export all relevant data to spreadsheets
Companies using Nomentia Risk Management
Transforming risk management on a global scale.
Optimized FX hedging for Dräger
Learn how Dräger is using Nomentia Risk management to highly automate FX risk management and optimize hedging.
"We appreciated the fact that we had Nomentia on board as a sparring partner from day one. They didn’t simply want to sell us a system but also had the practical experience to support us with proposals on how to take correlation effects and different cashflow maturities into account while building our risk management model."
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