SAP Certified Partner

Market Risk Management (Risk to Reduce)

Optimize operational business activities, hedge FX and commodity risks, and develop a hedge strategy

Market Risk Management (Risk to Reduce)

Market Risk Management (Risk to Reduce)

Market risk management: Comprehensive and powerful treasury and risk management has become increasingly important in recent years. Mismanagement and more difficult lending by banks are presenting many companies with liquidity challenges. Events such as the coronavirus pandemic and wars have had a significant negative impact on the macroeconomic outlook. Ongoing supply difficulties and economic sanctions, among other things, have caused prices to rise sharply and dramatically increased market volatility. The increasing battle for raw materials and the best raw material prices is continuing to intensify.

Would you like to protect your company in good time and take control of reducing market risks yourself? We would be happy to show you how you can actively manage your foreign currency and commodity price risks yourself.

Your contact person

Any questions?

René Holz

Business Unit Manager Treasury

+49 231 9497-0

Your advantages at a glance

Challenges

  • Optimization of operational business activities (purchasing and sales strategy)
  • Strategic optimization of your purchasing and sales processes minimizes financial risks and enables you to respond effectively to market fluctuations. Targeted data analysis allows trends to be identified at an early stage and appropriate measures to be taken to increase profitability and efficiency.
  • Hedging FX and commodity risks
  • Currency and commodity price risks pose major challenges, especially for globally active companies. With the right hedging strategy, you can minimize these risks. The use of foreign exchange transactions or commodity hedges makes it possible to cushion market price volatility and ensure financial stability.
  • Developing a hedge strategy with system support and a high degree of automation
  • A systematically implemented hedge strategy combines automated processes with sound financial decisions. Integrating such strategies into existing ERP systems reduces manual effort, improves accuracy, and ensures rapid implementation of hedging transactions.
  • Dynamic risk reporting
  • Flexible and dynamic risk reporting provides a real-time overview of the company’s risk positions. It supports decision-making with detailed analyses and forecasts and ensures that management can act on the basis of current data.

Gain a competitive advantage

To protect your business in good time, you need to take control of reducing market risks yourself. Actively manage your foreign currency and commodity price risks and gain a competitive advantage that will have a positive impact on your operating margins.

SAP Exposure Management links the Transaction Manager directly to SAP SD and SAP MM, enabling optimal control of FX and commodity risks from operational business. Hedge Management combines exposure and hedging transactions.

FAQ
What are the market risks?

Delivery difficulties and economic sanctions are having a strong impact on price levels and dramatically increasing market volatility. The growing battle for raw materials and the best raw material prices is becoming increasingly fierce. In addition to rising raw material prices, production costs are also increasing.

To ensure timely protection, companies must take the reduction of market risks into their own hands. Active management of foreign currency and commodity price risks provides a competitive advantage that has a positive impact on operating margins.

Market risks are actively managed by optimizing operational activities, hedging FX and commodity risks, and developing a hedge strategy with system support and a high degree of automation. Dynamic risk reporting also helps to keep an eye on potential market risks.

The customer is always our focus.

Long-term partnerships, customer satisfaction, and sustainable success are the benchmarks of our own success.

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