Risk Management and Hedge Accounting

The Risk Management and Hedge Accounting solutions offered by XRT enable the corporate treasury to gain insight into the global financial and market risks that the enterprise faces, and act effectively according to corporate treasury policies. The XRT enterprise cash & treasury solution provides integrated risk management and hedge accounting capabilities using industry standard analytics, compliant with domestic and international risk management and accounting standards. These solutions provide critical mark-to-market calculations and market risk sensitivity measurements needed for market risk and hedge accounting reporting/compliance. These statistics are used to effectively manage market risk exposure and derivative use.

The objectives of the solutions are :

• To secure the consistency, capability and control of your corporation's risk management / reporting and hedge accounting practices.
• To optimize the diversification and allocation of both interest rate and foreign exchange positions to minimize market risk exposure.
• To automate the reporting of critical exposure and derivative tracking including mark-to-market, pricing sensitivities and value-at-risk (VaR).
• To provide comprehensive automation of hedge accounting business processes.

The XRT integrated solutions are fully FAS133 and IAS39 compliant. Once deployed, this system enables the highest level of control over market risk.

Key features of Risk Management & Hedge Accounting solutions include :

• Integrated Value-At-Risk engine using industry standard methodologies.
• Industry standard cash flow based pricing and sensitivity measurement analytics.
• Automated import capabilities of market data including all key foreign exchange rates, yields, volatilities and correlation data/curves.
• Comprehensive hedge accounting capabilities including capture of hedging strategies, hedge relationships with one:one, one:many, many:one and many:many hedge members, prospective and retrospective effectiveness testing, P&L and OCI classifications, and automated generation of hedge accounting general ledger entries.
• Comprehensive and flexible reporting and graphical tools.