Liquidity management with SAP TRM / FAM

Up-to-date, efficient liquidity planning for financial services providers and corporates

Manage and minimize liquidity risk successfully

Liquidity management is becoming increasingly important, not only to industrial companies whose business model has forced them to manage their liquidity actively for years, but also to insurance companies. This is demonstrated for instance by the study on liquidity management in insurance companies that was conducted last year by the Research Group for Actuarial Risk Management (FaRis) at the TH Cologne and COMPIRICUS AG.

COMPIRICUS supports you in implementing this core task for your finance function – based on cash-flow-oriented liquidity planning we will support you in implementing an efficient and sufficient liquidity reserve, the appropriate management process, and a suitable right system support:

Liquidity reserve definition

  • Determine the appropriate liquidity buffer for your company (derived from the liquidity planning)

 

 

 

 

  • Analyze and establish the adequate instruments for investing the reserve
  • Implement a back-testing process for ongoing monitoring of the reserve’s definitions

Upgrade middle office

  • Implement liquidity ratios and define respective limits and threshold levels to support the management
  • Supplement existing reports in your capital investment reporting with information on the liquidity effect of the portfolio

Organization

  • Establish a related management process or integrate the liquidity risk management into existing processes
  • Document the liquidity management by means of guidelines and provide support in communicating these instructions within the company

System Support

  • Analyze the existing system landscape in the Finance area (SAP or non-SAP)
  • Upgrade your SAP systems to take the liquidity management requirements into consideration
  • Support in the implementation of new solutions and their connection to your SAP environment

With our support, you will receive an efficient tool to successfully manage your company’s liquidity risk and create target-oriented reports.