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Global Finance Magazine Awards Kyriba: Best Cloud FX Solution

By Kyriba

Kyriba has recently been recognized for its FX Risk Management solution in Global Finance Magazine’s Gordon W. Platt 2022 and 2023 Foreign Exchange Awards. The company was named as the “Best TMS Provider with FX Module”, “Best Solution for FX Cash-Flow Hedging”, and “Best Cloud Technology FX Solution”. “The maturity and evolution of Kyriba’s FX Risk Management platform creates positive outcomes for their customers.”

Innovation and Excellence in FX Risk Management

Kyriba won this award by delivering value for finance leaders responsible for managing the foreign currency impact on their financial statements and optimizing the cost of hedging through Correlated VaR Analysis. Kyriba’s FX Risk Management platform offers complete pre-trade, trade, and post-trade capabilities in a single platform. Exposure Analysis, Trade Management, Valuations & Accounting, and Business Intelligence dashboards help CFOs, Treasurers and Risk Managers reduce vulnerability to currency headwinds, improve the effectiveness of hedging programs, reduce FX transaction costs and deliver hedge accounting automation.

Managing The Impact Through Awareness and Enablement

Stability and financial predictability are continuously attacked on many of our customers’ financial operations from several externalities that include conflict, environmental, public health, governmental policy shifts, geopolitical turmoil, and the breakdown of trade relations. “The volatility over the past year has been extraordinary,” says Andy Gage, senior vice-president at Kyriba. “It’s been bigger than the 2008-2009 period and it’s had the biggest impact on corporate financials that I’ve ever seen.”

Currency exchange risk and currency risk awareness are at a historical tipping point. As international trade continues to expand and global economies become more interconnected, managing currency risk has become a critical concern for CFOs of large corporations. The fast-paced nature of today’s global economy, coupled with increased market volatility and uncertainty, has made it more important than ever for the Office of the CFO to have access to accurate and real-time data to help manage currency risk. One bellwether is the amount of currency headwinds and tailwinds creating challenges for companies of all sizes and locations. Forces creating opportunities for some business entities may be opposing forces in others. The CFO must be able to make the right risk-based decisions and, often, these decisions involve foreign currency impacts. CFOs trying to steer the course of their organization towards stable resiliency must be able to manage the impact of balance sheet fluctuations and future firm FX transactions to the time they should be recognized as an income or expense. The direct impact on profitability and financial reporting results translates literally into a direct bottom line impact.

FX Risk Management Flexibility in Real-Time

CFOs are faced with several challenges when it comes to managing currency risk. One of the biggest challenges is the need to constantly monitor and analyze large amounts of data to identify potential risks and make informed decisions. Kyriba’s exposure aggregation: the automation of pulling in exposures from a wide array of systems and data sources helps to minimize this often time-consuming and complex task. The ability to make changes quickly to contend with unexpected changes and discoveries of new exposures. Being able to enter and conduct the entire workflow from pre-trade to trade, confirmation, settlement and posting, all the way through to valuations and accounting makes Kyriba’s cloud solution a clear advantage over other systems.

Kyriba FX Risk Management Enables CFOs to Mitigate Risk

Kyriba’s FX platform automates data collection workflows to ensure that risk analysis is based on complete and accurate exposure data. This enables CFOs and risk managers to make more informed decisions and take action to mitigate currency risk. The solution also integrates with Kyriba’s Liquidity Management Platform, enabling advanced cash forecasting, real-time payments and fraud protections, DSO and DPO controls along with Connectivity through an Open Architecture with APIs. This powerful combination of solutions enables CFOs and risk managers to automate their FX risk management programs and increase the precision and predictability of their FX risk reduction objectives in real-time with multiple scenario analysis to stress test the predicted outcomes of their hedging programs.

Optimal Hedging Costs Against Target Risk Levels

Another key challenge for CFOs is the need to implement effective hedging strategies to manage currency risk. “Hedging is a cost of doing business internationally. Finance executives with a mandate to manage currency risks want the impact to be as flat as possible,” said Gage. However, “you also need to be able to ensure you’re not hedging unnecessarily with exposures that could be offset naturally.” CFOs, in making more informed decisions about hedging strategies, are using VaR solutions to create real impact and do just that: Kyriba’s Correlated VaR Analytics delivers insight on-demand into the amount of correlated value at risk that exists across all currency pairs within a company’s portfolio of exposures. The new solution builds upon Kyriba’s ability to aggregate and calculate FX exposure with automation, giving risk managers more time to leverage data insights and design programs to cost-effectively mitigate volatility. “Since the Fed began raising interest rates, hedging costs for companies have increased for companies by two, three even four times over,” said Kyriba’s Gage. “How to mitigate those costs is a difficult conversation we’re now having with CFOs and treasurers.”

Into 2023, Volatility is Still Driving Concerns

Managing currency risk is a critical concern for CFOs of large corporations. The fast-paced nature of today’s global economy, coupled with increased market volatility and uncertainty, has made it more important than ever for CFOs to have access to accurate and real-time data to help manage currency risk. Companies like Kyriba are providing innovative solutions to automate data collection workflows, advanced cash forecasting and connectivity, and implement effective hedging strategies, which help CFOs and risk managers to make more informed decisions and take action to mitigate currency risk in real-time. Read more on Kyriba’s leading cloud FX solution.

The full press release and article from Global Finance Magazine.

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