Products / Risk Management

hedgeOS

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Summary

Exposure that spans more than one market, on one screen.

A treasury's risk rarely respects asset-class boundaries: an import contract priced in one currency against a commodity quoted in another, a financial position covering part of it, a receivable that moves with both. hedgeOS reconciles the risk factors of each operation into a single exposure map and revalues the whole book at every price tick, so composite positions stop being something reconstructed once a month.

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Benefits

One exposure map, composite risk in view, accounting served from the same data.

The map, not just the open positions

Every operation - import, export or financial - is decomposed into the risk factors it actually carries, and those factors are reconciled across the book. What appears is the exposure the business runs, which is not the same thing as the list of trades currently open.

Composite risk, before it breaks a threshold

Risk that lives in the interaction between factors - a currency move that only hurts because of where the commodity is, or the reverse - is invisible to a per-asset-class view. Monitoring the combination is what lets the alert arrive while there is still a decision to make.

Accounting served from the same numbers

Hedge accounting has its own requirements: documented relationships, effectiveness evidence, valuation records. Producing them from the same live marking that risk uses removes the reconciliation between what the desk saw and what the accounts report - the step where the two versions usually start to diverge.

Transaction exposure is a committed cash flow in a foreign currency - an invoice, a receivable - whose local value moves until it settles. Translation exposure arises on consolidation, when foreign assets and liabilities are restated into the reporting currency. Economic exposure is the broadest and the least visible: the effect of currency moves on future competitiveness and cash flows that no contract has fixed yet. They call for different answers, and only the first is fully hedgeable with an instrument.

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