Nomentia Risk Management

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

At-risk calculation

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

Companies using Nomentia Risk Management

Transforming risk management on a global scale.

Case study

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."

Mark Blatt

Strategic Projects Finance and Controlling, Drägerwerk AG & Co. KGaA