Understanding the Risk Analysis Process

This topic includes:

  • Prerequisites.

  • Common elements used in the risk analysis process.

  • Provided valuation functions.

You must first define risk analytics on the Instrument Analytics page.

Field or Control

Description

Calculation or Analytic Calculation

Select a calculation to generate the risk analysis. The selected supplier or supplier product name determines the available values.

Function Usage

Select the type of analysis to perform.

Mode or Analytics Mode

Available values depend on the function usage type.

Supplier or Supplier Product Name

Select from the available supplier names, for example, Excel Functions. You define supplier names and their analytic calculations at installation.

Calculate

Click to run a risk analysis calculation.

Analytics calculation includes all of the different functions needed to perform a comprehensive risk analysis and management. For example, due to the complexity of analysis and companies, you can create your own customized analytics. Customized analytics include:

  • Analytics calculation.

  • Treasury deal valuations.

  • Cash forecasting.

  • Sales forecast.

  • Manufacturing optimization.

  • Brand and channel valuation.

  • Macro level analysis

  • Hedging effectiveness.

  • Value at Risk (VaR).

Use combinations of different exposure objects to evaluate the impact of business and financial risks on the enterprise. Currently, exposure objects (treasury and non-treasury) are defined stored.

  • Graphs and reports.

    The system stores analysis and analytic activity output. You can generate reports (system delivered or customized) for both managerial and compliance needs.

    Here's how to determine hedges:

  • Process and analyze a current cash position worksheet.

  • Process and analyze VaR risk calculations.

  • Determine what deals must be hedged from analysis results.