The management of financial instruments with SAP Treasury and Risk Management

Challenge

The client, a holding company, expressed the need to extend the financial instrument management and liquidity control model to its foreign subsidiary in order to:

• increase the level of automation and intelligence in some highly manual processes
• manage the group’s portfolio of financial instruments in accordance with the LUX GAAP principles by strengthening the organization of accounting and disclosure processes
• equip themselves with a tool for monitoring financial investments and supporting decision-making processes

Solution

According to the requirements expressed and the objectives declared by the client, Qintesi proposed a design approach modulated in two phases.

In the first phase, lasting 2 months, the implementation of the Treasury and Risk Management component for its foreign subsidiary was completed in relation to the financial instruments already managed in other group companies. The stated objectives have been pursued by carrying out improvements in the following areas:

• optimization of financial operations management processes
• increase in the level of automation in the reconciliation processes of bank transactions
• tracking of financial instruments in compliance with LUX GAAP requirements

In this first project phase, the integration with banking counterparties was also completed for the automatic transmission of reporting flows to SAP.

In the second phase of the project, the focus of implementation activities was aimed at the introduction of new financial instruments in the group model and the development of regulatory and management reporting in order to:

• consolidate the solution of financial instruments management in compliance with LUX GAAP requirements
• increase the level of efficiency of disclosure processes
• improve the effectiveness of decision-making and investment processes