Sap treasury and risk management online training:strive erp

SAP TREASURY AND RISK MANAGEMENT ON-LINE TRAINING

CORPORATE TRAINING ON-LINE TRAINING

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SAP TREASURY AND RISK MANAGEMENT ON-LINE TRAINING course overview

Overview SAP TreasuryGeneral Master Data

Market Data ManagementTransaction Manager: Money Market Trading

Transaction Manager: Foreign Exchange TradingTransaction Manager: Derivative Trading

Transaction Manager: Commodity TradingTransaction Manager: Hedge Management

Transaction Manager: Securities ManagementAnalyzer Basic SettingsMarket Risk AnalyzerCredit Risk Analyzer

Portfoli Analyzer


• Provide an overview of SAP Treasury and Risk Management• Explain the various processes and the standard functions within Treasury• Give an overview of the Transaction Manager• Give an overview of the Market Risk Analyzer• Give an overview of Credit Risk Analyzer• Describe the full Treasury process• Describe the different sub processes• Know the difference between Money Market, Foreign Exchange,Commodity, Derivative, and Securities• Set up connection to Loans Management• Identify connection points to other SAP modules• Understand the reporting opportunities within SAP Treasury and Risk Management (TRM)• Provide an overview of the different risk processes• Explain the Market Risk Management process• Explain the Credit Risk Management process• Explain the Portfolio Analyzer process• Explain the Accounting Analyzer process• Explain the Hedge and Exposure Management functionalionality.

Treasury and risk management plays a critical role in an organization’s financial operations, acting as the steward of the firm’s assets and liabilities.

The focus of treasury was historically on cash management,but today’s treasurer is playing a more strategic, advisory role within the firm, working in partnership with operational groups to oversee an organization’s financial supply chain.

Treasurers are interacting with a greater number of internal and external constituents than ever before, and are increasingly relying on treasury management technology to gain accurate,and timely visibility over their global cash position and to move toward a goal of straightthrough-processing of treasury transactions.



Functional View of the Treasury and Risk Management

All SAP Treasury tasks and their distribution across the areas of TransactionManager and Risk Management can be derived from the business objectives. Youcan use the Transaction Manager to optimize yields and cost structures, and RiskManagement to hedge against market and credit risks.Transaction Manager supports the management of financial transactions andpositions.You can use Market Risk Analyzer to analyze interest rate, currency, and stockrisks.Credit Risk Analyzer helps you determine credit risks and includes an onlinelimit check.Comprehensive management of financial transactions and positions• Trading and back office support• Monitoring, checking, and releasing• Data transfer to Financial Accounting (including accruals/deferrals andvaluations)Flexible configuration of company-specific transaction and position managementprocessesAssignment of financial transactions to portfolios or management in securitie


General Master Data

You would like capture financial transaction in SAP Transaction Manager, masterdata settings are required. You would be define required master data settings fortrading financial transactions.• Set up House Bank settings, Process the SAP business partners• Explain the role types defined in the business partner and create businesspartner relationships• Set up standing instructions and define authorizations for the business partner• Differentiate between banks in general, business partner banks, and housebanks.Bank details, which are required for your own and the business partner bank,maintained centrally in a “bank data pool”.The bank data you enter is maintained in the Financial Accounting bankdirectory, that is, structured automatically or manually, and can be accessedthroughout the system.The bank directory contains the bank master data. This includes bank address dataand control data, such as swift codes and bank groups.The bank directory must contain the master data for all banks that is requiredfor processing payments. These include your own house banks and the businesspartner banks.


Transaction Manager: Money Market Trading

Money market transactionsInterest rate instrumentsCash flow transactionsFacilitiesFixed-term deposits– Due date arranged from the outset– Fixed interest for the whole term (at least 30 days)– Rollover facility• Overnight money– Term only lasts one day (current practice until further notice)• Deposit at notice– Concluded for an unspecified period– Due date depends on the period of noticeCommercial Paper• Short-term, discounted bearer bond• No interest payments during the term.


Transaction Manager: Foreign Exchange Trading

Name the product types in foreign exchange trading and the most importantbusiness operations and functions in Trading, Back Office, and Accounting• Process delta view in connection to money market• Perform front-office processing for a spot or forward transaction and aforeign exchange swap.• Transfer the flows from the foreign exchange transaction to FinancialAccounting using the accounting functions• Prepare and execute a key date valuation• Standard reporting for FX transactionForex trading includes the following product types:• Spot exchange (maturity 1–2 working dates)• Forward exchange transactions• FX Swap (spot and forward transaction)Foreign exchange is traded as strategic investment (speculation) or as hedginginstrument. Different product are use (posting, valuation)


Transaction Manager: DerivativeTrading

Provide an overview of the derivative financial instruments supported byTransaction Manager.• Explain the various instruments for hedging against risks derived fromcurrency fluctuations• Map these instruments in Transaction Manager• Explain the various instruments for hedging against interest rate risks• Map these instruments in Transaction Manager• Explain the cash flow and product structure of an CCS• Show an application example of an CCSDerivative financial instruments relating to currency and interest can be dividedroughly into exchange transactions (upper half) and optional transactions (lowerhalf). The latter can also be further sub-divided into listed and OTC (Over TheCounter) options.The building block concept applies here. This means that one instrument can beformed from another or combined with others to create a new instrument.


Transaction Manager: Commodity Trading

Trading commodity forwards, futures and swaps transactions in the TransactionManager module. Use the financial product for selling or purchase of commoditypositions.Differentiate between transaction and Future Account Management• Explain the various processes and the standard functions within Treasuryfor Commodities• Explain the different Product Types and Product StructuresDifferent commodity Product Types• Differentiation between Transaction and Future Account ManagementDefine different types of master data settings, for trading commodities. The lessoninclude an overview about the following master data settings:• Commodity ID,• Future Account,After completing this lesson, you will be able • Set up commodity ID• Set up a Commodity Class• Set up Future Accounts


Transaction Manager: HedgeManagement

Using SAP Hedge Management for mapping exposure and hedge item together.Base of the hedge relationship you would be, carried out hedge effectiveness testand post OCI valuation result into SAP-FI.Understand Hedge Management (cash flow , fair value hedge and hedge fornet investment)• Create a Hedge Relationship• Perform an Effectiveness Test (prospective, retrospective)At the end of this lesson, you will be able to distinguish the following hedge types:• Cash Flow Hedge• Fair Value Hedge• Hedge of Net InvestmentWith a fair value hedge, balance sheet assets or liabilities or liabilities orparts thereof that are not recorded on the balance sheet are hedged againstfair value changes due to a certain risk• Fair value changes of the derivative as well as of the underlying transactionto be hedged are shown in profit and loss statements.


Transaction Manager: Securities Management

overview of securities management• Available product types• Overview transaction and position management• Create business partners in different roles• Maintain class master data, including basic data, conditions, and other data• Set up securities accounts and portfolios, if required, to manage yourpositions• Understand and create position indicators• Trading securities transactions• Using the Collective Processing Function for entering security transactions• Overview about the Position Management• Familiarize yourself with the interface to accounting and the necessaryclosing operations.• Differentiate posting out of the transaction and position management• Carrying out interest accrued and an valuation run• Explain and perform position management in Transaction Manager


Analyzer Basic Settings

You would like managing financial risks out of the financial transaction in theMarket Risk and Credit Risk Analyzer module.Explain the risk type matrix (allocation of the different risk types

• Define a risk controlling process

Risk is the probability of a loss from a financial transaction.The risk to a financial transaction is described as a market risk if it arises purelyfrom changes to market parameters (interest rates, exchange rates, currencyexchange rates, volatilities


Market Risk Analyzer

Explain and execute NPV and sensitivity analyses• Perform ALM analyses• Calculate sensitivity key figures• Perform Grid Analysis• Define and use market data scenario and shifts• Structure risk factors• Define risk hierarchies• Explain value-at-risk evaluations• Differentiate between Monte Carlo simulation, the variance/covarianceapproach, and historical simulation• Explain how back testing works• Understand the architecture of the Results Data Base• Explain reporting in the Results Data Base• Perform evaluations in the Results Data Base


Credit Risk Analyzer

• Distinguish between credit risks and settlement risks• Explain the CRA process (limit process)• Define and check limits• Make the connection between creating a transaction and determining theattributable amount• Use end-of-day processing in a target-oriented way• Understand exposure determination• Explain the basic terms of CRA• Create a limit structure from individual limit types• Create limit types from standard characteristics and characteristics you havedefined yourself• Understand attribution amount determination• Define n-dimensional limit structures• Describe the determination procedure• Explain the additional Limit Management functions• Include business partner relationships in the setting up of limit structures


Portfolia Analyzar

Trader remunerationProfit source analysisAnalysis of investment policiesInternal controllingSpecial funds Quality rating of funds managersYield trendsAnonymous data -composite Standards (AIMR, DVFA, )CompetitionMarketingAnonymous data -compositesStandards

Software

Sap treasury and risk management online training:strive erp