Out-of-the-box ERP reports are not adequate for assessing FX and Commodity risk. Moreover, if your company is growing via acquisition – establishing and maintaining connections into all legacy systems across multiple IT platforms may be impossible.
AtlasFX provides visibility into the information required so Treasury practitioners can successfully do their jobs. We extract only the ERP data needed to determine Balance Sheet and Cash Flow exposures. While getting at this information is critical, it is merely a starting point for optimal FX and Commodity risk management.
Instead of using the current snapshot of the Balance Sheet as a proxy for the future Balance Sheet position, AtlasFX includes forecasting capabilities – greatly improving the accuracy of your hedges. During implementation, we configure AtlasFX to fit your specific requirements while offering process improvements and best practices along the way.
Historical exposure information is also maintained in order to compare current with past information. Cash Flow forecasts and market information are then linked to the information from inside your ERP system(s) to calculate Cash Flow and Balance Sheet hedges, which in turn can be used to improve the next period’s forecasts. This process reduces slippage from mid-month spot settlements of Cash Flow hedges and reduces external trades by re-designating these hedges to fair value.
The result is a more accurate view of the overall exposure used to calculate hedges and show how well they will work – leading to better forecast accuracy and hedge results including a completely reconciled Balance Sheet. Users have access to related detailed analytics including flexible and user-defined reports.
These reports allow users to understand correlated risks across currencies, business and entities, with and without hedges, allowing them to decide which risks they do and don’t need to hedge according to their own policies. This reduces the costs of hedging while bringing currency risk to a reasonable level.