Services

Market contribution, result sensitivity and market stressing as central elements of the risk assessment.

• Combine exposure structure with Market Data
• Exposure structure results from contracts and pricing models
• Based on a long / short model of the company

Almost every company has a more or less strong dependency on markets. This dependency results from obligations that a company enters into with the outside world in the form of contracts and price agreements. We analyze these dependencies and use them to develop a long / short model of the company. The focus here is on commodities, currencies, interest rates, semi-finished products, alloys, equity investments and other market-dependent receivables and liabilities. Exposure ratings provide an assessment of the current market risk of a company based on notional values ​​and risk indicators such as VaR. Furthermore, the exposure ratio (operating vs. market-dependent result), the historical development of the exposure position and a qualitative assessment of the current status of risk management organization and risk processes are assessed. The data is usually provided directly by the customer. Alternatively, template methods can also be used (industry-standard indicators). Position recording usually takes place weekly or monthly. Market data is recorded in real time. Banks can query and further process the exposure position of a company at any time.

Measuring the structure of market dependence of companies. How is the result linked to exogenous market factors?

• Show structure of market dependencies and correlations
• Measuring Stability of Exposure Structure and Market Dependencies as a Whole
• Additionally with peer group comparisons

Dependencies ratings are an extension of exposure ratings and inform about the structure of market dependence of company results. Therefore, it is analyzed which markets are like each other (long / short - results from price models in contracts). The correlation between markets is also measured. In addition, customers receive a peer group comparison of the exposure valuations.

Measuring the earnings sensitivity of companies in relation to market influences. How strongly does the result react to market changes?

• Ratings analyze the sensitivity of the overall operating results to markets
• P & L sensitivity current, historical and as forecast
• Cluster and Overall Market Sensitivity
• Single Market and Total Market Dependence

Sensitivity ratings are based on the exposure ratings. They provide an extended view of the market exposure of a company. The focus here is on the operating result of a company and its dependence on market parameters - therefore, how sensitive is the result of a company being investigated to market influences. Sensitivity ratings assess the current market contribution of a company in the budget year, provide forecasting of probable earnings developments using forecasting methods and, of course, allow a historical analysis of the result sensitivity. Coupled with the exposure ratings, sensitivity ratings can be queried by banks at any time. Their actuality corresponds to that of exposure ratings.

Analysis of the market dependencies of a company. We create an exposure profile that can also be used for continuous reporting and use the exposure structure to assess the dependence of the operating result on exogenous market factors. We encapsulate the market contribution and evaluate the current and historical market dependency. Upon request, we also carry out a future-oriented exposure stress test, install an early-warning system or provide a toolbox for forecasting the contribution of the market result to the current budget year. In addition to the quantitative analysis, we also perform a qualitative analysis of the risk management of the company.

• Assessment of the borrower's market risk and risk outlook
• Support value determination of the company
• Support the company with market risk
• Reduction of the risk of default
• Securing your own financing line

Project to determine the market exposure of the company and assess the associated viability of the business model.

Analysis of individual risk positions and overall risk. Main focus on raw materials, semi-finished products and currencies. Workshops with purchasing and sales, finance, controlling, logistics and corporate management. Consideration of the pricing arrangements and payment horizons from procurement and sales. Derivation of proposals for risk and value management.

Creation of an exposure profile in cooperation with sales, finance and management. Linkage of exposure profile and market data. Conception of scenarios for extreme situations and on the basis of prognosis tools. Projection of the earnings contributions from the company exposure. Evaluation of results and proposal of defensive strategies.

Continuation Concept - Derivation of Strategic Measures for Exposure Situation, Purchase and Sales Optimization etc.

Examination of +40 potential factors related to exposure profile. Discussions with purchasing, sales and finance department and analysis of the most important contracts. Creation of an exposure profile. Quantification of potential savings and earning potential. Compilation of a catalog of measures.

Exposure management as an integral part of business policy. Adaptation and conception of a sustainable business model. Adaptation Interaction Purchasing / Sales / Finance. Set up a reporting infrastructure. Management Advisory.in Market Exposure relevant topics. Optimization Exposure / Liquidity / Cashflows / Tax Base.

Summary of valuation models in the areas of pricing models, payment terms, contracts, market risk, sensitivities, price elasticities, etc.

• Review Pricing Models Purchasing / Sales
• Scenario calculation Payment terms Purchase / Sales
• Contract Reconciliation Purchase / Sale
• Calculation and presentation of risk figures
• Calculation of earnings sensitivities to individual markets
• Price elasticities between purchasing and sales
• Line Forecast for Continuity
• Line forecast for financiers
• Risk reporting for financiers

Uniform Exposure Reporting to Financing Consortia. Summary of market dependency, risk ratios, hedge degree, lending rate, target compliance.

• Initial Exposure Capture
• Exposure reporting in real-time
• Quantity Entry Purchasing / Warehousing / Finance
• Valuation of inventories and contracts
• Delivery of Risk Indicators - including VaR
• Supervision of risk limits
• Ongoing / Regular Reporting to Consortium Partner

Increase in return on equity through the exposure management approach. High-margin products and differentiation through innovative product offerings based on the Exposure Management approach.

Supplement Corporate Solutions - Exposure Management to sensitize bank customers and the resulting expansion of the product portfolio.

Equity and refinancing costs: Greater transparency through exposure accounting creates a different valuation basis. Transparency and proximity lead to reduced risk.

Product Portfolio Corporate Solutions: Development of a joint product "Exposure Management" with a fund-like income structure.

Financing of usable stockpiles: XPOSUREval provides the insight, the appropriate reporting and assists with the sorting / evaluation / recovery.