New Zealand’s Dunedin City Treasury selects Visual Risk to replace legacy TMS
Dunedin City Council’s treasury has contracted with Visual Risk to transform the productivity and efficiency of its treasury management operations. Dunedin City Treasury provides funding and financial services to the Dunedin City Council group, which includes the Council as well as utility, asset and service entities. With oversight of assets worth $680 million, they provide a full suite of treasury services to the group, including:
- Working capital management
- Cash management
- Funds management
- Risk management
- Treasury services
- Third party relationship management
- Investment portfolio management.
As a trusted provider of treasury services across the group, it is essential for DCT to have a flexible TMS that meets their data and business requirements. The deployment of Visual Risk’s advanced solution is expected to improve the productivity of Dunedin City’s treasury operations. By delivering full cash visibility, streamlining day-to-day operations, improving reporting capabilities and supporting secure workflows, DCT will realise efficiencies at both operational and senior management levels.
“At Dunedin City Treasury, we are pleased to have the ability to perform detailed scenario analysis – and in particular, how this feature will assist with future decision–making processes.”
Richard Davey, Treasury Manager, Dunedin City Treasury.
Visual Risk’s solution will offer the ability to process, analyse and visualise complex data in striking graphical formats.
Cutting-edge visualisation capability will assist DCT analysts in drawing powerful insights from complex data. This, in turn, will inform better decision making by senior management.
“A key factor that guided the selection of Visual Risk to replace our previous system is the ability to easily generate key management reports and graphics that represent risks and exposures.”
Richard Davey, Treasury Manager, Dunedin City Treasury.
Additionally, DCT will benefit from Visual Risk’s advanced risk management capabilities. Visual Risk enables users to easily analyse complex data and design superior risk mitigation strategies. With a unique reporting dashboard that quantifies relevant market sensitivities and enables dynamic analysis and stress-testing of both existing portfolios and potential strategies, Visual Risk empowers managers to make better-informed decisions.
Hume Bank selects Visual Risk as their trusted Treasury & ALM system provider
We are pleased to announce Hume Bank has selected Visual Risk as a partner to provide an Asset Liability Management (ALM), Hedge Accounting, Treasury and Liquidity Management solution.
“At Hume Bank, we were using a combination of spreadsheets, internal models and an ageing ALM system to manage our treasury risk functions. With the selection of Visual Risk, we will be able to drive significant efficiency and better balance sheet insight through an integrated end-to-end treasury solution.”
Jarrod O’Neill, Executive Manager – Finance, Hume Bank
“It is exciting to be working with Hume Bank to deliver treasury automation and enhanced balance sheet management. Hume Bank is further affirmation of Visual Risk’s market leading position amongst Mutual Banks, Credit Unions and Building Societies. It is indeed a great to pleasure to continue to be a key strategic partner to the community banking space.”
Glen Giffen, Director – Sales, Visual Risk
About Hume Bank
Hume Bank is a mutual financial institution that aims to build and enhance relationships with customers to enable them to make rewarding financial choices. Its blended service approach to banking is personalised across its branches, ATM network, phone and online banking channels.
Hume has been operating for over 62 years, and employs over 150 local staff and meets the needs of over 60,000 customers.
Indonesia Infrastructure Finance successfully implements Visual Risk’s Treasury Management System
As featured in a recent GT News article Indonesia Infrastructure Finance (IIF), an initiative of the Indonesian Government in co-operation with the World Bank and Asian Development Bank (ADB), has successfully implemented the Visual Risk treasury system. IIF’s mission is to fund critical infrastructure to underpin economic growth in Indonesia’s rapidly expanding economy. Visual Risk is proud to be a key success partner, supporting development within the ASEAN Region.
Some of the Key Positive Outcomes:
- • IIF achieved an enterprise-wide view of assets and liabilities across the company’s books; an essential step in achieving sound asset and liability management.
- • Many manual treasury functions were modernised and automated, eliminating multiple entries into spreadsheets and other manual processes in dealing, confirmation, settlements, and accounting. This significantly enhanced operational quality and efficiency.
- • Treasury dealing and asset and liability management are improved, both on a transactional level and a portfolio basis, to meet greater control and internal and regulatory requirements for risk management analysis and reporting.
To read the article in full please click here
About PT Indonesia Infrastructure Finance (IIF)
PT Indonesia Infrastructure Finance (IIF) is a private non-bank financial institution, which provides funding for the country’s commercially-viable infrastructure projects. It is supported by international agencies such as the World Bank (WB) and the Asian Development Bank (ADB), both as shareholders and as lenders. The Indonesian government is a major shareholder through PT Sarana Multi Infrastruktur (Persero), a state-owned enterprise (SOE) set up in February 2009.
Coats implements Visual Risk for derivative valuation and hedge accounting services
Coats, the world’s leading industrial thread manufacturer, has engaged Visual Risk to deliver regular derivative valuation and hedge accounting services as it increases its active risk management processes.
Coats initiated a review process to evaluate and select a partner that could deliver regular IAS 39 reporting on its interest rate swaps and foreign exchange portfolios. Visual Risk was selected due to its ability to natively handle a broad range of interest rate and foreign exchange instruments, combined with an advanced hedge accounting and derivative valuation solution.
As part of Visual Risk’s outsourced reporting service, Coats receives regular derivative valuations, hedge accounting documentation, accounting journals and breakdowns of all underlying calculations. Visual Risk’s quantitative experts also support Coats’ treasury and accounting teams in discussions with auditors and advisors. The implementation was completed by Visual Risk consultants, working closely and efficiently with Coats’ teams in the UK and North America.
Charles Barlow, Group Treasurer, Coats: “The employment of Visual Risk has been very successful. The outsourcing solution works extremely well for Coats. We utilise the skills and expertise of Visual Risk to perform the complex derivative valuations, enabling Treasury and our business units to recognise the effect of hedging on our underlying commercial transactions.”
Alankar Karol, Chief Operating Officer, Europe, Visual Risk: “We are delighted to add Coats to our growing UK client base. We have developed deep expertise in hedge accounting since 2004 and can now offer that expertise to UK companies seeking a partner to assist them in the complex testing and reporting required. Hedge accounting is a demanding area of compliance and we are pleased that Coats are already reaping the benefits of the new partnership.”
Visual Risk wins Best Risk Management Solution in Treasury Management International’s 2015 Awards
We are delighted to announce that Visual Risk has been awarded the TMI 2015 Technology Innovations Award for Best Risk Management Solution. This award recognises our market leading innovation, contribution to best-practice risk management in treasury and delivery of proven benefits to our customers.
“Visual Risk has invested heavily in developing the next generation of integrated TMS and risk systems and is deeply committed to developing the most advanced and fully featured TMS available in the market. We are now embracing the very latest proprietary technologies to deliver a rare combination of core functionality enhanced with our unique brand of advanced analytics and data visualisation. We are proud of our talented team and confident our commitment to innovation will ultimately disrupt the market and transform the way treasuries go about managing their daily operations and increasingly complex risk and compliance requirements on a single, SaaS delivered platform. This award is very gratifying in that it recognises our vision is very much on track. We would like to thank TMI for this prestigious accolade”:
Paul Nailand & Richard Hughes: Co-Founders & MDs
The TMI Awards for Innovation & Excellence have become firmly established as the quality benchmark for the treasury profession. They formally recognise banks, vendors, consultants and practitioners who are defining new frontiers and driving best practices in treasury management globally.
Visual Risk & Zanders partner to deliver risk solutions in UK / Europe
Visual Risk is pleased to announce a new partnership with Zanders, the leading independent Treasury advisor for Corporates in Europe. The partnership provides Zanders clients with the opportunity to supplement their FX, interest rate and commodity risk management advisory projects with analytic input from an intuitive and visual Cashflow-at-Risk system.
Our risk management projects commonly cover the identification and measurement of exposures and the design of robust and sustainable risk management policy and processes. Increasingly, our clients are interested in advanced risk modelling techniques such as Cashflow-at-Risk. Visual Risk helps them see their market risk positions modelled in a specialist analytic tool which applies dynamic Monte Carlo simulations to stress-test market conditions and models their hedging strategies.
Judith van Paassen: Partner, Zanders.
Macro global market conditions are increasingly volatile and this will likely be exacerbated when interest rates start rising to more ‘normal’ levels. Inevitably, market risk management is developing as a major focus for corporate treasuries in Europe and, as such, we are delighted to forge a closer collaboration with Zanders who are recognised as a thought leader in treasury risk.
Richard Hughes: Managing Director, Visual Risk.
Visual Risk delivers a powerful risk analytics system with the ability to process, analyse and display complex data in a unique graphical manner. This assists treasurers to better visualise, understand and report complex information to senior management. The system can simulate changing market conditions and quantify risk sensitivities across combinations of multiple currencies, commodities and interest rates.
For treasuries seeking to improve their risk management frameworks and take control of their risk mitigation strategies, please contact:
Charter Hall wins 2015 Adam Smith Award for their STP Project
We are delighted to announce that, for the second year running, one of our customers has been recognised in the Adam Smith Awards. Charter Hall have received the Highly Commended Award: Harnessing the Power of Technology for their implementation of Visual Risk’s fully integrated Treasury Management System. They have selected from a field over 200 nominations.
The annual Adam Smith Awards Asia are hosted by Treasury Today and recognise treasury teams and projects which have transformed their corporate treasury function and contributed positively to their organisation.
The project was recognised for the following achievements:
- Automation of treasury calculations and posting journal entries directly to the GL system, estimated to save 20 days per month.
- Import of 400 bank account balances on a daily basis delivering cash visibility across the group.
- Generation of 500 electronic treasury settlements per month, improving internal controls and realising significant efficiency gains.
We would like to congratulate Charter Hall and Ian Ko, Treasury Manager, for his proactivity and enthusiasm in partnering with us to complete this project on time and within budget.
To read the full case study please click here.
Amey selects Visual Risk for derivative valuation and hedge accounting services
Amey, one of the UK’s leading public and regulated services providers has selected Visual Risk to deliver regular derivative valuation and hedge accounting services as it increases its active risk management processes.
Having decided to initiate a hedging program for commodity purchases, Amey initiated a review process to evaluate and select a partner that could deliver regular IAS 39 and IFRS 13 reporting. Visual Risk was selected due to its ability to natively handle a wide range of commodity instruments combined with an advanced hedge accounting and derivative valuation solution.
As part of Visual Risk’s outsourced reporting service, Amey will receive regular derivative valuations, hedge accounting documentation, accounting journals and breakdowns of all underlying calculations. Visual Risk’s quantitative experts will also support Amey’s treasury and accounting teams in discussions with auditors and advisors.
Ross Millard, Assistant Treasurer, Amey: “Visual Risk’s wealth of knowledge and experience enables Amey to comply with IAS 39’s onerous valuation and testing requirements with minimal effort”.
Paul Nailand, Managing Director, Visual Risk: “We are delighted to add Amey to our growing UK client base. We have found that our unique strength in managing commodity instruments, combined with increasing market volatility has generated significant demand for our systems and services”.
Amey is a leading UK public and regulated services provider with over 21,000 employees. Amey operates over 320 contracts, providing an unrivalled range of services including utilities, highways, waste management, rail, justice solutions, social housing and facilities management. Services are underpinned by our leading consulting and asset management capabilities, which allow us to offer stand-alone or integrated service solutions to a range of clients. Amey is owned by Ferrovial. They are one of the world’s leading infrastructure management and investment companies. Ferrovial employs approximately 65,000 employees and operates in over 25 countries. Ferrovial’s activities focus on four business sectors construction, airports, toll roads and services. Amey is part of the Services division.
Nexia & Visual Risk partner to deliver treasury solutions to Indonesia
Visual Risk and Nexia Indonesia Advisory Services (‘Nexia’) are pleased to announce their recent partnership, which will see them working together to deliver innovative treasury and risk management solutions to organisations throughout Indonesia.
Handoko Komaruddin, Nexia Indonesia: “Working closely with technology market leaders complements and extends Nexia Indonesia’s solutions and capabilities. As a leader in the treasury technology arena, Visual Risk is well positioned to help us deliver dynamic solutions to our client base.”
Glen Giffen, Director – Sales, Visual Risk: “Visual Risk have built strong alliances across the region that enable us to deliver leading-edge treasury solutions to our clients. We look forward to working with Nexia as they empower clients to succeed in Indonesia’s complex business environment.”
Since the recent increase in regulation of hedging activities by Bank Indonesia (Indonesia’s Central Bank), the need for an integrated treasury and risk management platform has grown. In late 2014, Indonesian organisations were already facing new regulations regarding hedging of foreign currency loans and, from 2017, Bank Indonesia will have the ability to specify minimum hedging thresholds.
Together, Visual Risk and Nexia are bringing a more sophisticated and integrated treasury solution to both Banks and Corporations across Indonesia, enabling them to adopt best practice in an increasingly complex regulatory and reporting environment.
About Nexia Indonesia Advisory Services
Nexia Indonesia is a management consulting, technology services and outsourcing company, founded by experienced Indonesian professionals with skills across a broad range of business practice areas, in the midst of rapid growth in demand for consulting and advisory services. We have the skills and experience to provide the best advice on how to identify and access the opportunities, minimise the risks and succeed in Indonesia’s complex business environment. Over the years we have fostered extensive contacts with both key members of the business community, regulators and the Indonesian government.
Heritage Bank selects Visual Risk for their TMS
Heritage Bank, Australia’s largest customer-owned bank, has selected and implemented Visual Risk as their new treasury management system.
With Visual Risk, Heritage Bank has replaced a legacy system which was their primary treasury platform for the past 10 years. The deployment of Visual Risk means Heritage now utilise a solution that applies the very latest in treasury systems technology. This has allowed Heritage Bank to transform their workflow practices and improve the reporting capabilities for their treasury operations and daily liquidity management.
Peter Haller, Assistant Treasurer, Heritage Bank: “Selecting Visual Risk has helped us take a fresh look at our treasury workflow operations with a view to increasing efficiencies whilst maintaining the core integrity of our processes. The system has fit seamlessly into our core banking and accounting platforms and has made data more accessible whilst improving the liquidity risk management capabilities of the business.”
Glen Giffen, Director – Sales, Visual Risk: “Visual Risk pride ourselves on delivering solutions that empower users to transform their treasury operations and core activities through implementing robust systems and best practice. We look forward to working with Heritage Bank as they move to a more efficient and modern treasury platform.”
About Heritage Bank
Heritage Bank is Australia’s largest customer-owned bank. In 1981 Toowoomba Permanent Building Society (est. 1875) and the Darling Downs Building Society (est. 1897) merged and became Heritage Building Society. In December 2011, Heritage Building Society officially changed its name to Heritage Bank. Heritage Bank has assets exceeding $8.5 billion and currently employs approximately 700 staff. The bank has 100 retail outlets across southern Queensland, offices in every state capital, and lends to customers around Australia via a national network of mortgage brokers.
ADCU adopts Visual Risk for their Treasury and Risk
Australian Defence Credit Union (ADCU) has selected Visual Risk as their Treasury and Risk Management System (TRMS) to replace existing systems and manual practices. ADCU wanted to adopt a single integrated system to deliver efficiencies in their daily activities and leverage the latest technology to help them oversee their interest rate, liquidity and daily credit limits.
Visual Risk will provide ADCU’s treasury with the crucial tools to materially improve their ALM reporting and gain better oversight of their treasury operations.
Glen Giffen, Director – Sales, Visual Risk: “Visual Risk has a strong foundation in supporting financial institutions, particularly regional banks and Mutuals, with managing their treasury and risk challenges. Our solution delivers an end-to-end system that allows users to adopt best practice techniques and deliver reports that meet the requirements of local regulatory bodies. We look forward to working with ADCU as they transform their treasury operations to the benefit of their business and members.”
ADCU recently announced an intended name change to Australian Military Bank. This will occur in December 2015.
ADCU have been providing banking services to the greater Defence community since 1959. They are an Authorised Deposit Taking Institution with branches on all major Australian Defence bases, over 48,000 members and funds under management of $1.06 billion. ADCU operates in accordance with the Banking Act (1959) and is regulated by the Australian Prudential Regulation Authority (APRA). ADCU takes pride in their reputation for being helpful, reliable, professional and most of all for understanding the needs of the Australian Defence Force.
Synergy selects Visual Risk for Treasury and Risk Management
We are pleased to announce that Synergy has selected Visual Risk to provide its Treasury and Risk Management (TRM) system. Synergy is Western Australia’s leading power generator with an extensive and diverse portfolio of power stations located around the state. It also generates electricity from renewable sources.
Synergy’s treasury team manage large debt exposures at both Group and subsidiary level, foreign exchange and interest rate hedging programs, as well as cash management across multiple operating accounts.
Following a restructure, a TRM system became necessary for Synergy to proactively manage its treasury operations. Visual Risk was selected due to its ability to deliver a complete front to back office solution. Synergy will utilise Visual Risk to interface to banking platforms, market data providers and General Ledger while automating numerous manual treasury and cash management workflows.
Amit Kabra, Corporate Financial Controller, Synergy: “Visual Risk will provide us with the essential tools to help us deliver our treasury objectives, in particular reducing risk and delivering day-to-day operational efficiencies”.
Richard Hughes, Managing Director, Visual Risk: “We are delighted to add Synergy to our Western Australian client base. With Visual Risk, Synergy’s treasury team can now dedicate more time to strategic analysis and reporting and deliver real value-add to the business”.
Visual Risk has been adopted by a large number of utilities across Australasia.
Synergy is Western Australia’s largest provider of gas and electricity to more than one million residential, business and industry customers. They operate as an energy retailer in an area known as the South West Interconnected System (SWIS) that extends from Kalbarri in the north, east to Kalgoorlie-Boulder and south to Albany.
Secure Trust Bank selects Visual Risk for Treasury & ALM
We are pleased to announce that Secure Trust Bank has selected Visual Risk for their Treasury back-office and Asset Liability Management (ALM) system.
As Secure Trust Bank continues to experience increased growth, they identified the need for an integrated treasury solution to improve existing internal processes and better manage their financial risk.
“Secure Trust Bank was looking for a solution that could address all our immediate requirements, in particular, our need for a provider with the ability to deliver multiple solutions in a single, integrated system. In addition, we also needed a solution that would support the Treasury team into the future” Neeraj Kapur, Chief Financial Officer, Secure Trust Bank PLC.
Glen Giffen, Director – Sales, Visual Risk: “We are delighted that Secure Trust Bank has chosen to work with us on their Treasury and ALM system implementation. Their need to meet the ongoing treasury challenges and deliver innovation within their treasury operations presents an exciting opportunity for us, and we look forward to working with the team on this phase of their evolution.”
Secure Trust Bank is amongst a growing number of UK-based financial institutions who are adopting Visual Risk to support their treasury needs.
About Secure Trust Bank
Secure Trust Bank PLC is a long-standing established UK bank. Its core business is to provide banking services including a range of lending solutions and savings products. Operating from its head office in Solihull, West Midlands, it has been a subsidiary of the Arbuthnot Banking Group since 1985. The bank’s diversified lending portfolio focuses on its core products of unsecured personal lending, motor finance and retail finance, whilst it is also now developing lending solutions for the small and medium-sized enterprises (SME) market.
The curtain is falling on an easy IFRS 9 transition
The opportunity to take advantage of IFRS 9 hedge accounting treatment without being burdened by the impairment and classification and measurement changes of the standard is fast disappearing. If you have been thinking about transition then now may be the time to act.
A successful transition will require the investment of time and resources in developing an appropriate strategy for each of the following issues:
- Building an internal business case for transitioning.
- Involvement of your business advisors and agreement from your auditors.
- A coherent technology strategy, closely aligned with your IFRS 9 and IFRS 13 ready vendor.
Visual Risk is already working with corporates who have early adopted IFRS 9 and are actively engaging with their advisors/auditors to negotiate the transition. We can leverage this experience and our market-leading hedge accounting solution which incorporates advanced CVA to help you successfully adopt IFRS 9.
IFRS 13: Outsourced Credit Valuations
Visual Risk has released an advanced CVA module to assist treasuries struggling to comply with IFRS 13. Similar to the models applied by banks, it utilises a simulation-based approach to calculate an instrument’s potential future exposure and applies industry-standard formulae to calculate credit adjustments.
This methodology provides the most accurate credit valuations for deals such as cross-currency swaps and long-dated interest rate swaps and is consistent with the advanced approaches recommended by the Big 4 accounting firms.
The model is fully integrated with Visual Risk’s market leading hedge accounting functionality and will generate all appropriate accounting entries. If you are having problems with your CVAs, Visual Risk can deliver your CVA and hedge accounting reporting via an outsourced service.
Treasury transformation at Charter Hall Property Group
Visual Risk recently completed the implementation of an integrated treasury and risk management system for Charter Hall Group, one of Australia’s leading property funds. The implementation was identified as a strategic priority in early 2013 and included all front, middle and back-office functions for all of Charter Hall’s property funds. The key objectives were to:
- Implement robust security and controls across treasury.
- Achieve operational efficiencies and reduce human error.
- Automate complex calculations.
- Post accounting entries directly to the General Ledger.
Following a review of all available treasury systems, Visual Risk was selected as the optimal solution for Charter Hall. This case study explores how Visual Risk helped Charter Hall re-envision their treasury requirements and pro-actively collaborated on a successful implementation, delivered on-time and within budget. Charter Hall case study
Liquidity Risk Management – Regulatory change in Australia
With financial institutions under increased scrutiny from regulators to shore up their capital base and funding channels, liquidity risk management is receiving increased attention from regional financial institutions.
Visual Risk recently undertook a survey of Australasian ADI’s to better understand current practices around liquidity risk management adopted by treasurers and risk managers, and their preparedness in handling the new liquidity regulations. This document summarises the key findings of our survey and provides some insight into the current liquidity risk practices operating in organisations today. Contact us for more information or a copy of the full report.
Visual Risk opens London office
Visual Risk, Australasia’s leading treasury and risk management vendor, is pleased to announce the opening of their London office and the appointment of a new Head of Professional Services, Europe. Both events are direct responses to rapidly increasing demand for their treasury solutions across Europe.
Richard Hughes, Managing Director: “We have always taken great pride in delivering the highest levels of customer support and treasury expertise and are now able to offer this same calibre of service to our European customers. To assist our expansion in this region, we are now very pleased to announce the appointment of treasury specialist Gary Starling as Head of Professional Services. Gary brings over 20 years of treasury expertise, previously having held senior operational roles in industry and consulting roles at IT2 and Accenture amongst others. We are delighted to welcome such a seasoned treasury professional on board“.
Gary comments: “Visual Risk is a new entrant to this market with unique strengths in managing complex risk, hedge accounting and compliance issues. The company is strategically committed to continuous innovation and driven by a very capable team that includes a dedicated quantitative and support group. I believe this will be an attractive combination and prove highly popular in a competitive treasury environment and am looking forward to the opportunities ahead“.
Enhanced Cash Management
Visual Risk is pleased to announce the release of significantly enhanced functionality to streamline daily cash management activities within our integrated treasury solution. These will deliver greater automation reducing both manual effort and operational risk. The specific enhancements include:
- Improved workflow to reconcile individual transactions within bank statements.
- Additional cash management reports including reconciliation statements and records of deferred transactions.
- Enhanced export of reconciled numbers to ERP or other third party systems.
- Support for additional statement formats including SWIFT MT940, MT950, as well as CSV formats.
- Flexible management of non-treasury forecasts by business units within Visual Risk.
These enhancements now deliver full visibility of liquidity across the enterprise and enhanced ability to quickly analyse and implement appropriate liquidity and funding strategies.
A Case Study: Fully Integrated Treasury at Meridian Energy
Meridian Energy is New Zealand’s largest renewable energy generator with international projects in Australia and New Zealand. In May 2014, Meridian Energy underwent a project to consolidate the group’s treasury technology into a single system solution. Visual Risk was chosen as the preferred treasury system. This case study, conducted by gtnews, explores how the new Visual Risk system was implemented, on time and within budget and the impact it has had on Meridian Energy’s treasury operations. Meridian Case Study
Reduce P&L Volatility with Visual Risk’s new Advanced CVA / DVA Module
Visual Risk has released an advanced CVA / DVA module to assist treasuries struggling to comply with IFRS 13.
Since 31 December 2013, many treasuries across Australia and New Zealand have used the simple current exposure methodology to calculate credit and debit valuation adjustments for their derivatives. This methodology can result in significant adjustments to valuations for deals such as long-dated Interest Rate Swaps and Cross Currency Swaps. More advanced models can be used to avoid these impacts, but until recently, have only been available to large financial institutions.
Visual Risk’s new model utilises a simulation-based approach to calculate an instrument’s potential future exposure and applies advanced CVA / DVA formulae to calculate credit adjustments. The result is a more realistic credit adjustment generated by a robust methodology. The new model is also fully integrated with Visual Risk’s market leading Hedge Accounting functionality and will generate all related accounting entries.
KPMG selects Visual Risk to support their new treasury advisory service
Visual Risk has recently been selected by KPMGs Australian practice to support their treasury risk advisory service. KPMG will use Visual Risk to analyse their client exposures and hedging transactions and track and report on these transactions. Complex tasks managed within the system include hedge accounting, sensitivity analysis and credit valuation adjustments.
Following a rigorous review process, Visual Risk’s fully integrated treasury system was selected. Paul Travers, KPMG Director: We preferred the Visual Risk treasury system because of its expert local Support team and unique ability to manage the entire range of treasury functions required by KPMGs diverse and complex client needs. Our clients are caught in a constantly changing treasury landscape with ever-evolving legislation and reporting demands. The need for us to respond on every aspect is of the utmost importance now more than ever.
The implementation project was large and complicated with a significant number of client positions to capture. As we were working to a tight and immovable deadline, the speed of implementation was vital to this project. I am pleased to say Visual Risk was able to respond to our needs and successfully deliver to the critical timeline says, Paul.
Having successfully implemented the solution for over 32 clients so far including KPMGs internal treasury, KPMG is looking forward to growing the advisory service and sharing the technology with other clients. Richard Hughes, Managing Director, Visual Risk: We are delighted that KPMG selected Visual Risk to provide software services to their clients as well as their own treasury. We look forward to collaborating more closely with KPMG in the future to not only grow their advisory service but also leverage off their expertise to enhance our own offerings.
Visual Risk’s integrated solution is delivered over the web in a highly secure environment. The software is backed by a team of highly skilled treasury practitioners who offer broad expertise across all technically challenging aspects of treasury.
Fair Value Macro Methodology: practical solutions for hedge accounting at financial institutions
There is no question that the application of a fair value macro methodology is one of the more complex and challenging areas of the IAS 39 hedge accounting standard. It is hardly surprising then, that the International Accounting Standards Board (IASB) is currently considering fair value macro separately to general hedge accounting changes prescribed under IFRS 9. Whilst the IASB work towards developing a standardised macro hedging accounting model, Visual Risk has implemented fair value macro hedge accounting solutions at leading financial institutions around the world.
The most demanding aspect of fair value macro is to correctly identify the hedged item from a portfolio of fixed rate loans. Using advanced techniques, the Visual Risk system enables automated analysis of the non-traded banking book profile to determine the most appropriate hedged item. Once the hedged item is determined, it can then be allocated to a hedge (for example, interest rate swap) in an effective hedge relationship. Each month thereafter, the system re-examines this profile to rebalance the portfolio based on a comparison of the expected pre-payment profile versus the actual pre-payment profile.
An additional challenge arises due to the ineffectiveness that results from the process of rebalancing. The Visual Risk system applies a variety of techniques, including regression analysis based on historic pre-payment rates, to ensure that this ineffectiveness is minimised.
To find out more, contact us to receive a detailed article which discusses the practical implications of applying the fair value macro hedge accounting methodology.
STP for Treasury and Cash Management
In order to facilitate greater Straight Though Processing (STP) efficiency for our customer’s treasury, Visual Risk has released multiple interfaces to facilitate full enterprise connectivity. These deliver greater automation for our users, reducing both manual effort and operational risk. Our enterprise connectivity suite includes:
Bank Statement Import:
Visual Risk can import bank balances and transaction data in the following formats
- Swift File Format MT940 and MT950
- Payment File Generation
Visual Risk can now generate your settlements in file format for upload into your banking platform using the MT 103 Swift File Format.
- Dealing Platform Integration
Visual Risk will directly import deals executed in a variety of dealing platforms such as:
Visual Risk partners with Markit to deliver a complete solution for IFRS 13
For organisations performing half-year reporting starting from 30 June, the new IFRS 13 Standard will require fair value measurement of assets and liabilities to include Credit and Debit Value Adjustments (CVA / DVA). These valuations will require the inclusion of credit spreads which can be hard to access. Thanks to its partnership with Markit, Visual Risk can now source high-quality credit default swap data on approximately 3,000 entities.
Visual Risk has offered a CVA / DVA compliant solution since 2007. It enables users to apply different spreads against external counterparty credit for assets and own credit for liabilities when calculating the market value of financial instruments. These credit spreads can also be incorporated in our Hedge Accounting reports.
Markit is a leading provider of CDS data. Its CDS end-of-day service aggregates valuation information for the credits that trade in the CDS market. This information is drawn from numerous financial institutions including inter-dealer brokers, electronic trading platforms, major market makers and many significant buy side firms. We have recently published an article reviewing some of the crucial aspects of IFRS 13. Credit Value Adjustments: IFRS 13
Visual Risk partners with Fides to deliver seamless bank account management functionality
Visual Risk is pleased to announce today that it has partnered with Fides Treasury Services, the world’s largest Multibanking Service Bureau for Corporates. Visual Risk will link directly with Fides to make it easy and cost-effective for our clients to connect their treasury management system with their financial institutions.
Through the Fides partnership, clients can eliminate the time, effort and expense of dealing with multiple bank relationships. Fides’ unique Hybrid Service Bureau model will consolidate all international bank accounts and make payments via a single central system. It will also enable Corporates to send and receive SWIFT messages via the Fides Hybrid Service Bureau without investing in their own direct connection to the SWIFT network. Clients will receive support from the initiation of the bank mandate process through to the testing and configuration of each bank connection.
Glen Giffen, Director, Global Sales, Visual Risk
“Partnering with Fides will quickly bring comprehensive global multi-banking capabilities to our customers. By consolidating all bank account access into one uniform interface, management will be greatly simplified, reducing reliance on manual processes and spreadsheets. This new relationship represents yet another exciting step forward in Visual Risk’s ongoing commitment to improving our customer’s productivity and accuracy.”
Daniel Beames, Head of Client Relations & Projects, Fides Treasury Services
“The partnership with Visual Risk signifies an important milestone in the distribution of Fides services to a global market. The custom-fit solutions that Fides will provide Visual Risk will ensure a fully managed, seamless STP user experience in an environment of growing complexity.”
Fides is the leading provider of Corporate Multibanking Services to more than 300 Corporate clients in North America, Europe and APAC. Fides has been dedicated to providing Multibanking access to the Corporate sector since 1985, connecting and servicing clients through SWIFT and other networks. The unique hybrid access and member concentrator model, combined with a broad range of conversion, validation and security services provide the true one-stop shop for global Corporate Multibanking. Fides is a member of the Credit Suisse Group AG but operates an independent Corporate Service Bureau, connecting the world’s market leading Corporates to their global banking network and managing integration with the global providers of Treasury Management and Enterprise Resource Planning Systems. For more information, please visit www.fides.ch
Visual Risk moves into the Cloud
Visual Risk is pleased to announce the launch of our new Cloud-based service. This service will be offered as an alternative to the existing option to install the system locally within customers internal networks. This means treasurers can now select the deployment model that best fits their IT environment.
Each Cloud service customer will have their application hosted on a dedicated Server. To deliver this service, Visual Risk utilises one of the most reputable data centres in the region to deliver a high-performance solution which offers maximum data protection and guarantees high availability.
The solution builds on the successful introduction of Visual Risk’s web hosted Data-as-a-Service product earlier this year. The new service will benefit customers by minimising the involvement of their internal or outsourced IT in maintaining the software.
Richard Hughes, Managing Director:
“We wanted to provide our customers with choice when it came to accessing their treasury management system. For customers with outsourced IT arrangements, web access can be an attractive alternative. For others, managing their critical systems in-house is preferable so we, therefore, decided to offer both options. Our customers can take comfort in the fact that whatever deployment approach is selected, they will enjoy the highest level of security in a dedicated environment.”
Visual Risk releases enhanced bank account and cash management functionality
Visual Risk has significantly extended the cash and liquidity management component to include the following new functionality:
- Bank Account Interface
- Bank Account Reconciliation
- Non-Treasury Cash Flow Interface
- Basel III / ASP 210 compliance (for financial institutions)
This enables customers to manage their full daily cash process within the Visual Risk treasury management solution, culminating in a full cashflow forecast and liquidity map across the entire enterprise.
Visual Risk and Tullet Prebon Information announce data supply agreement
Tullet Prebon Information will supply Visual Risk with a wide range of over-the-counter instruments, including foreign exchange, money market and interest rate data for a wide range of currencies. This data will be delivered directly into customers’ Visual Risk applications via our web-hosted data service. Read the announcement
Basel III: Credit Adjusted Valuations for ADIs
For Australian ADIs, APRA will adopt Basel III recommendations from January 1, 2013. Basel III allows unrealised gains and losses recognised on the balance sheet to be included in Common Equity Tier 1 Capital. As such, ADIs will be required to perform quarterly valuations of assets and liabilities to enable APRA to understand the quality of their Common Equity Tier 1 Capital. In addition, these valuations will need further adjustment to account for credit margins on all balance sheet items. Please click here to read APRA’s Discussion Paper (Focus on Chapter 3).
Visual Risk is pleased to offer assistance with these complex credit adjusted valuations.
GFI Group to Provide Full Suite of OTC Market Data to Visual Risk
GFI Market Data and Visual Risk today announced an agreement whereby GFI will supply Visual Risk with its full suite of Market Data, including OTC derivatives in fixed income, FX, energy, commodities, equities and interest rates. This data will contribute to more sophisticated pricing curves and volatility surfaces for complex valuations and will be delivered seamlessly through our web-hosted data service. Read more here
New Cloud-Based Market Data Service
In partnership with leading data vendors Thomson Reuters, ICAP, GFI and Tullett Prebon, Visual Risk is pleased to announce the release of a new web-based market data service.
The service provides access to a vast library of interest rate, FX and commodity tickers. Validated data is delivered automatically into the Visual Risk treasury system via the web, removing manual upload processes and reducing operational risk. Through this service, our clients are now able to access previously unobtainable data such as:
- Money Market Basis Swap Rates: important for building accurate yield curves.
- Cross Currency Basis Swap Rates: essential for valuing cross-currency swaps.
- Volatilities: required to build full volatility surfaces for accurate option pricing.
- Commodities: access to global spot, forward and futures prices.
Customised data packages can be tailored for each client, ensuring they only pay for the data subsets they really need. This is highly cost-effective compared to sourcing such data independently. At Visual Risk, we continue to invest in technology to meet the evolving needs of our clients.
New version of Cash & Liquidity Management Component released
With cash and liquidity management now a crucial focus for treasuries, we are pleased to announce that we have just released a significantly enhanced version of our Cash & Liquidity component. This new component will significantly streamline the way you manage your liquidity, bank accounts and cash forecasting activities:
- Daily Cash Process.
- Capture individual bank accounts at corporate or subsidiary level.
- Combine bank accounts into pools for consolidated reporting.
- Import daily balances from your banking platform.
- Query balances by date, currency, subsidiary, bank account pool, or specific bank account.
- Cash Forecasting.
- Import large numbers of non-treasury cash movements with ease.
- Accurately project end-of-day balances.
- Forecast future cash movements from treasury and non-treasury sources for any forecasting horizon.
- Revalue foreign currency balances to your reporting currency.
- Define alternative views of your cash positions and forecasts with a flexible reporting framework.
- Liquidity Risk.
- Graphically map your future cash flows to identify funding surpluses/deficits.
- Help to anticipate and devise strategies to mitigate potential liquidity risk events.
- Stress-test liquidity positions with different interest and exchange rate scenarios.
This component now includes a dedicated bank balance management feature to ease the pain of importing, editing, and viewing the daily bank balances across multiple currencies, subsidiaries, or banking platforms.
PricewaterhouseCoopers LLP, Singapore, selects Visual Risk
We are pleased to announce that PricewaterhouseCoopers LLP (PwC LLP) Singapore has selected our fully integrated suite of Risk, Treasury Management and IAS Compliance modules to underpin their treasury advisory and outsourcing business. PwC LLP is now able to offer a full suite of treasury solutions ranging from advice on risk policy design, board reporting and specialised risk analysis through to outsourced back office treasury services. The service can now deliver Singaporean and Malaysian companies the powerful functionality of the full Visual Risk system at a fraction of the cost of an in-house system along with the backing of PwC’s team of dedicated treasury specialists.
“PwC LLP Singapore’s, selection of Visual Risk once more underpins our growth and market leadership in this region,” says Richard Hughes, Managing Director of Visual Risk. “Together with PwC, we believe this unique new service will revolutionise the way businesses manage their treasuries in Singapore and Malaysia”
PwC LLP Partner Chris Matten highlights the benefits of this new strategic alliance: “With Visual Risk, we can deliver a broad range of consulting and outsourcing services to all sizes of business, with full support from a global network of treasury and market risk experts,” he says. “This cost effective service is underpinned by the latest treasury solutions developments and best practice techniques made available by Visual Risk. It means we can provide clients with a full range of services covering all aspects of risk analysis – from specialised ‘at-risk’ modelling and ‘stress testing’, to seamless fully outsourced middle and back office treasury services.”
“PwC LLP” refers to PricewaterhouseCoopers LLP, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.
Visual Risk achieves Microsoft Partner Gold Independent Software Vendor Status
Visual Risk is pleased to announce that it has once more achieved Microsoft’s Gold Partnership status, the program’s highest level for an Independent Software Vendor. Certified partners have a proven commitment to the adoption of cutting-edge Microsoft technology whilst delivering excellence in customer service. To achieve gold status Visual Risk’s solutions were required to pass compatibility-testing with Windows 7 environments, ensuring continued ease- of-use for our customers as they upgrade their operating systems.
Gold Partnership provides unparalleled access to Microsoft in terms of support, training and new releases. Visual Risk remains committed to leveraging these benefits to further enhance its solutions and the end-user experience.
New component: Target@Risk™ introduced to enhance our Reporting Dashboard
Visual Risk today introduces Target@Risk™, another best-of-breed risk component. Target@Risk™ builds on the strength of our existing risk capabilities and adds the ability to monitor and stress test potential cashflow variances relative to specific treasury targets or your budget. It can be applied to reduce potential variances to acceptable levels and deliver cashflow certainty to your business. Target@Risk™ introduces another best practice management metric to help your treasury monitor and mitigate market risk.
Target@Risk™ can be viewed through our powerful Reporting Dashboard which analyses portfolio data from within the treasury system and then publishes the outputs with clear visual representations for boardroom reporting. It is a key strategic tool for business management and risk mitigation and can graphically report:
- Exposure/hedge profile reporting
- Hedge policy compliance
- Risk scenario evaluation
- What-if hedge strategy evaluation
- Bank Proposal Assessment
- Budgeting, Budget Variances
- Sensitivity analysis / Stress Testing
- Cashflow at Risk, Target@Risk, Value at Risk
The Visual Risk Reporting Dashboard delivers the most advanced treasury solution available today, providing treasuries with the ideal tool for decision making and boardroom review.
Visual Risk announces new data agreement with Thomson Reuters and ICAP
We are pleased to announce that Visual Risk has recently partnered with ThomsonReuters and ICAP to provide our clients with a new, fully integrated market data solution. This partnership brings together two best-of-breed services to automatically deliver data directly into your Visual Risk system.
This service significantly streamlines otherwise time-consuming data upload processes and ensures a far greater degree of data integrity. The data available covers interest rates, FX and commodities. It also includes difficult to obtain prices such as currency basis swap rates, basis spreads and volatilities.
New Functionality Focus: Cash Management
Visual Risk now includes a powerful new cashflow forecasting function which leverages our native cashflow engine to generate accurate forecasts combining treasury and non-treasury cashflows. Features include:
- Bank account and bank account pool management.
- Import of bank account balances.
- Import of non-treasury cashflows to complete the cash picture.
- Calculation of cash positions at account, pool and consolidated level.
- Flexible reporting layout options and date bucketing capabilities.
This development once more illustrates our commitment to the continuous improvement of Visual Risk.
New Client focus: Fonterra – the challenge of quantifying dairy price risk
Based in Auckland, Fonterra Co-operative Group Limited is a New Zealand multinational dairy co-operative owned by more than 10,500 New Zealand farmers. The company is responsible for around 30% of the world’s dairy exports and is New Zealand’s largest company with revenue exceeding NZ$16 billion.
Fonterra’s earnings are heavily exposed to movements in the international price of milk and milk related products. Recently, the commodity risk management team at Fonterra embarked on a project to quantify and concisely report the annual variance in ‘total milk revenue’ in USD and NZD terms.
Hamish Keston, Commodity Risk Analyst, Fonterra, explains some of the project objectives and challenges:
“The starting point of any risk management activity is to accurately understand your exposure and quantify the risk associated with it. Building on this basis you can then make informed decisions on the strategies and approach that you will take. Fonterra obviously has a large exposure to dairy price risk but understanding the nuances of this is a complex task that requires the right tools”
Visual Risk was selected by Fonterra as the engine to regularly perform their multi-factor Cashflow-at-Risk analysis.
New Functionality Focus: Enhanced Balance Sheet Modelling for Asset Liability Managers.
Visual Risk has developed a significant set of enhancements in relation to our forecasting and budgeting capabilities. These enhancements will deliver even greater flexibility with respect to the modelling of projected product balances and customer behaviour, flowing right through to the potential impact of net interest-earning. The planned enhancements include:
- Easier modelling of non-symmetric repricing assumptions.
- Greater ability to split product balances and apply different product projections.
This development once more illustrates our commitment to the continuous improvement of Visual Risk.
SBS Bank selects Visual Risk for ALM, Treasury Management & IAS 39 Hedge Accounting
Established in 1869, SBS Bank (Southland Building Society) is New Zealand’s largest building society and officially received bank registration in October 2008. SBS Bank offers a wide range of banking services and products, including transactional banking, phone and internet banking, investments, residential and commercial lending, managed funds, agribusiness, consumer finance and insurance.
Visual Risk is pleased to announce that after an extensive evaluation process SBS Bank has selected Visual Risk to deliver an integrated risk and treasury platform.
Michael Potter, Asset & Liability Manager at SBS Bank, explains the reasons for their decision:
“With the growth of our business and SBS Bank’s recent acquisition of full banking registration status, it had become clear that it was necessary to beef up our risk and treasury management processes to bring them in line with current best practice. At the same time, we also needed a solution for complying with the onerous requirements of IAS 39 hedge accounting. In our search for a software solution it was, therefore, preferable that we find something that was equally competent in Asset-Liability Management, Treasury Management and IAS 39 Hedge Accounting. There were many other vendors out there with strengths in one or two of these areas but Visual Risk was really the only vendor that could cost-effectively bring all three functions together in a single integrated software platform.”
New Functionality Focus: General Ledger Integration
Visual Risk now includes a seamless and fully-automated GL Integration module to quickly and easily generate treasury accounting entries for direct upload to accounting systems. The module includes:
- Chart of Accounts featuring support for hierarchies and multiple charts.
- Extensive mapping capability to create generic or specific mappings for different instruments.
- Flexible reporting layout options and date bucketing capabilities.
- Support for all types of treasury accounting output including accruals and amortisations, cash and notional movements, mark-to-market, and hedge accounting.
- GL processing function to generate multi-currency and multi-portfolio accounting entries.
- Revaluation of accounting entries to different reporting currencies as required.
- Incorporation of user-defined fields for customised accounting output.
- Customisable interface to export accounting data to third-party accounting systems.
This development once more illustrates our commitment to the continuous improvement of Visual Risk.
Aurora Energy selects Visual Risk for their integrated front-to-back office solution
We are pleased to announce that Aurora Energy has selected Visual Risk to provide a fully integrated front-to-back office solution including Risk Analytics and Reporting, Compliance (IAS 39 / IFRS 7) and Back-Office.
Based in Hobart, Tasmania, Aurora Energy is a Tasmanian Government-owned electricity distribution and retail company. The company provides service to more than 255,000 Tasmanian customers as well as to business customers in New South Wales, Victoria, South Australia, the ACT and Queensland. An expansion in treasury activities and business growth meant that Aurora needed a Treasury Solution to replace a legacy treasury system and a myriad of existing spreadsheets. After a lengthy vendor evaluation process, Visual Risk was selected as the best solution to manage their treasury and accounting activities.
“We required a system that would integrate with our existing treasury management and hedge accounting processes while offering improvements in risk reporting. External consultants were used to assessing the available software solution and after stringent levels of testing, they concluded Visual Risk would be the best-fit system to meet the requirements of Aurora Energy.
“An important consideration during the assessment process was to identify a solution that could provide IAS 39 hedge effectiveness testing and documentation for our interest rate and FX hedges. Given that we needed a solution in place by June 30th, with the implementation scheduled to start in late June, this presented an added challenge. Visual Risk was able to load our entire portfolio and have IAS 39 compliant documentation in place within one week, successfully completing that part of the implementation within a very tight timeframe. This was done with minimal staff disturbance which was particularly refreshing during a busy time of year.
“The Visual Risk software caters very well to Aurora Energy’s treasury needs and integrates nicely into our processes and procedures. Additionally, the support is proactive and knowledgeable. Overall our confidence in Visual Risk, the software and the staff is very high.”
Bradley Hope – Senior Finance Analyst
Aurora Energy Limited
The Tatts Group selects Visual Risk
We are pleased to announce the Tatts Group has selected Visual Risk to provide a fully integrated front-to-back office solution including Risk Analytics and Reporting, Compliance (IAS 39 / IFRS 7), Treasury Management / Back-Office and General Ledger Integration.
Based in Melbourne, the Tatts Group is a provider of diversified gambling services and generates more than $3 billion revenue per annum. It accounts for more than half the lottery tickets sold in Australia. An expansion in treasury activities due to recent acquisitions and business growth has meant that the Group needed a Treasury Solution to replace a myriad of existing spreadsheets. After a lengthy vendor evaluation process, Visual Risk was selected as the best solution to manage their treasury and accounting activities.
The Group viewed the core system functionality and the exceptional level of client support offered by Visual Risk as the key considerations during the system evaluation process.
Visual Risk extends Outsourced Consultancy Services
Visual Risk has extended the range of outsourced services it offers to cover:
- Compliance Reporting (IAS 39 and IFRS 7).
- Risk analysis and reporting.
- Derivative valuation.
Having worked closely with clients and the Big 4 accounting firms over many years, Visual Risk has developed a deep expertise in IAS 39 hedge accounting. We are now able to offer the benefits of that experience through an outsourced service to provide all necessary IAS 39 and IFRS 7 compliance documentation.
In addition, Visual Risk also offers a Risk Analysis service to value your derivative positions and quantify the future market risk inherent in your portfolios. This analysis can assist senior management to better understand and optimally manage the market and hedging risk faced by their companies.
Through cost-effective Visual Risk outsourcing, your onerous Risk and Compliance reporting processes can be streamlined and the burden on your treasury operations eased.
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