The Treasury management solution manages 5 types of risk:
Market risk covers Interest rates and Currencies, Commodity prices and the value of various investments in assets. There are several key indicators to measure these market risks, including sensitivity, volatility, Greeks, VaR (Value at Risk) and others. Titan treasury includes management of hedging derivatives and their underlyings such as budgets, purchase orders, invoices, position, etc.
Market risks mainly come from market price fluctuations of financial instruments, interest rates, foreign exchange rates, commodity prices, etc. To monitor these risks and their impact on financial results, treasury departments must, among other actions to be taken, evaluate their market value (the “mark-to-market”), calculate their sensitivity to market volatility and follow a few key risk indicators to limit their impact under Cash Flow and Fair Value approach. Indeed, the market volatility can quickly impact the financial and accounting results of the company.
Counterparty risk monitoring allows a company to control the quality of its bank relationships (investment and finance), commercial partners and government guaranteed assets. A company is also valued by its banking and commercial partners.
For financial institutions and institutional investors, counterparty risk is monitored using several simple indicators of the ability of an economic entity to pay back its debt : turnover, debt (short, medium and long-term), operating result, rolling forecast cash flows, available liquidity and financial results. Companies can use collateralised guarantees and instruments.
Key Features of Titan Treasury:
Credit and Counterparty Risk Analysis
Collateral Management (margin calls)
Management of 3 credit ratings agencies : Fitch, Moody’s and Standard & Poor’s
Monitoring and reducing funding risks due to a lack of liquidity resources is a growing issue. Treasury teams needs to know their short term liquidity position and their available cash at date to make the right strategic decisions.
For a treasurer, the rolling forecast cash flow reports will show if the resources are sufficient and to what extent the positive operating cash flows shall match with funding needs .
Cash Flow at Risk (CFaR) is an important indicator that helps treasurers in the evaluation of the risk level linked to liquidity and the control and reduction of this exposure.
Security is a major subject in financial risk management.
It means an adapted and efficient organisation allows a high degree of information reliability, counting on strong security processes for the safety and control of data and transactions in accordance with the best practices and market standards.
Titan treasury & risk management solution provides tools for user identification, segregation of tasks, assistance in controls and security of imported static data (4-eye control). Titan Treasury offers control through custom limits with alerts and notifications. The TMS offers functionalities and controls for multi-user validation workflow covering transactions, cash flows, financial events and repositories. Administrators can have access to audit trails for connexions, repositories, market data update, and transactions.
Users can rely on a day-to-day basis on functionalities such as the new notification and alert centre, Calendar Management, built-in e-mail reminders, and SWIFT confirmations (MT3xx, 5xx, 6xx messages), and document management secured by user rights and authorizations.
What are the regulations standards covered by titan treasury?
In 10 years, financial and accounting regulations have evolved considerably, whether for corporates or for financial institutions.
2004 – effective transition date for IFRS,
2007 – implementation of IFRS 7 on “Financial Reporting of Financial Instruments”,
2012 – EMIR: European Market and Infrastructure Regulation. It brings new constraints for several players in the derivatives markets: financial or non-financial counterparties. The regulation introduces new actors (Trade Repositories or “Custodians”), the trade repositories, responsible for recording all the derivative contracts concluded between two counterparties.
2013 – application of IFRS 13 on valuation of fair value,
2018 – IFRS 9 will replace IAS 39
2019 – IFRS 16 on Leases