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Component documentationSAP Treasury and Risk Management (FIN-FSCM-TRM)

 

SAP Treasury and Risk Management is based on a series of solutions that primarily analyze and optimize business processes in the financial area of a company.

Transaction Manager

A core task in many finance departments is concluding financial transactions. Depending on the company policy, the emphasis can either be on providing an internal service for the affiliated group companies, or participating actively in the financial markets in order to invest liquid assets, finance planned investment, or hedge existing risks. The Transaction Manager provides the instruments for processing the related financial transactions, from deal capture through to transferring the relevant data to Financial Accounting. The system supports both traditional treasury departments that focus on trading as well as asset management departments. This enables you to use the same platform for various types of transaction - from short-term finance to longer-term strategic investments.

See also: Transaction Manager

Market Risk Analyzer

Besides traditional finance management tasks such as cash management and liquidity assurance, effective market risk management is a decisive factor in securing your company’s competitive position.. In this field, the Market Risk Analyzer offers extensive position evaluations, such as mark-to-market valuations of financial transactions. It also includes tools for calculating risk and return figures, including exposure, future values, sensitivities and value at risk. When you run these reports, you can incorporate both contracted positions and fictitious financial transactions in the calculations. The valuations can be based on both real and simulated market prices. Together with a high degree of flexibility for creating reports, the Market Risk Analyzer provides a reliable evaluation basis for market risk controlling.

See also: Market Risk Analyzer

Credit Risk Analyzer

The Credit Risk Analyzer focuses on measuring, analyzing and controlling counterparty default risk. The first phase aims to cover the specific risks associated with financial transactions in a company. The Credit Risk Analyzer enables you to control risks actively by setting limits. This is supported by flexible limit management functions with online monitoring, as well as extensive reporting options. As a result, managers are in a position to identify credit risks as they occur and take evasive action.

See also: Credit Risk Analyzer

Portfolio Analyzer

Given that the funds available for investment are usually limited, and that there are numerous investment options to choose from, the crucial question for investment policy decisions is how well the investments have actually performed. The economic success of an investment is therefore a critical factor when it comes to making investment policy decisions. The Portfolio Analyzer is designed to provide the answers regarding the economic success of investments. It measures the exact return on investments, compares the results to prescribed targets, and breaks down the overall performance into its component parts by attributing the individual portfolio positions to the total result. The basis for these evaluations is the portfolio structure, which lets you group investments into different categories. You can run evaluations for portfolios at different levels in the portfolio hierarchy, or for an asset category across several portfolios.

See also: Portfolio Analyzer

Implementation Considerations

  • To be able to use SAP Treasury and Risk Management, you first need to activate the Enterprise Extension EA-FS Financial Services in the Customizing activity Activate Business Functions (transaction SFW5).

    See also: SAP Library under   Business Function (SAP enhancement pacakge 5 for SAP ERP 6.0)  Enterprise Extensions: Business Functions  Financial Services  

  • Further, in the area of SAP Treasury and Risk Management, there are some Enterprise Business Functions that you can only use after you have activated the relevant Enterprise Business Function in the Customizing activity Activate Business Functions (transaction SFW5).

    See also: SAP Library under   Business Function (SAP enhancement pacakge 5 for SAP ERP 6.0)  Business Function for SAP ERP  Accounting  Financial Supply Chain Management  SAP Treasury and Risk Management   (SAP Treasury and Risk Management)

  • To be able to use the functions of the individual components of SAP Treasury and Risk Managments, you need to make the required settings in the Implementation Guide (IMG) for Treasury and Risk Management.

  • You make the settings for the SAP Business Partner in Customizing under   Treasury and Risk Management  Basic Functions  SAP Business Partner for Financial Services  .

  • To make the settings for market data, go to Customizing and choose   Treasury and Risk Management  Basic Functions  Market Data Management  .

Integration

Treasury and Risk Management is an integrated solution in which the various components are closely connected to each other. The financial transactions managed in the Transaction Manager can be evaluated and monitored using the analyzer components. In addition to being linked to the TRM analyzer components Market Risk Analyzer, Portfolio Analyzer, and Credit Risk Analyzer, the Transaction Manager is also linked to SAP Cash Management.

This graphic is explained in the accompanying text.

More Information

Roles in Treasury and Risk Management

Creating Single Roles

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