riskart Conformance Test: section 1 / section 2 / section 3 / section 4
FX Management System Requirements
Ref					FUNCTION	Description
SECTION 4 -  FUNCTIONAL  REQUIREMENTS							DEGREE OF SUPPORT	COMMENTS
1 Cash Position and Forecasting
1	1				Forecast data generation	Allows the generation of forecast data, based on treasury transactions, manual inputs and feeds from accounting and operational areas.	PS
1	2					Automatically update the cash flow forecast from initiation of transaction or subsequent adjustment.	PS
1	3				Versions	System should be able to keep several versions of the forecast and budget and manipulate individually or collectively for new data.	RM
1	4					System should be able to evaluate the change in the forecast over time.	RM
1	5				Forecast vs. budget vs. actual  comparisons	System should be able to compare forecast, budget and actual data, for current period, month to date, quarter to date, year to date, last 12 months and other definable periods.	RM
1	6				Trending and averaging	Ability to define (and change) the manipulation of historic data and use this as a forecast, especially averaging and trending.	RM
1	9				Manual and remote capture of forecast	Can a user enter current day and future dated transactions in-house and/or from remote locations?	RM
2 Foreign Exchange
2	1				Foreign Exchange Rate risk exposure	Describe the Foreign Exchange rate risk exposure definition process and functionalities.		Rate Risk is possible via Customized reports
2	2				Foreign Exchange Rate risk instruments	List all Foreign Exchange instruments and Foreign Exchange risk management functionalities supported.		Spot, Forex, CCS, Outright, Option on Currency… Exchange Risk via Customized reports.
2	3				Foreign Exchange Rate risk process	Describe the Foreign Exchange Rate risk process with reference to segregation of duties and level of authority.	?
2	4				International Accounting Standards compliance (e.g. IAS 39 / 32 / FAS 133)	System must be fully compliant with International Accounting Standards (e.g. IAS 39 / 32 / FAS 133) for  Foreign Exchange rate risk management.	FS
2	5					Please state how the system supports:
2	5	1				-  Hedge relationship definition.	FS
2	5	2				-  Hedging designation and documentation.	FS
2	5	3				-  Effectiveness Testing.	FS
2	5	4				-  Hedge Accounting.	FS
3 Transaction Management
3	1				Option valuations	Ability to price currency options, track price bids, report elements of pricing (separate intrinsic from time value).	PS
3	2					Ability for the system to monitor and provide automated notification of options and forwards that are “in or out of the money”.	RM
3	3				Standing deals instructions	System should be able to perform repetitive deals by using user defined standing instructions and deal types.	RM
3	4				Commissions, fees, service charge	The system should have the capability to track, and analyze transaction fees, broker fees, and custody fees by transaction type (FX, option, etc.). Provide details of types of analysis that are provided.	FS	With Customized reports
3	5				Deal linking	Tracking of related transactions/rollovers/whole/partial.	FS
3	6				Conversion to multiple currencies	All multicurrency deals should be convertible to statutory or local reporting currencies.	FS
3	7				Confirmation information	System should include Standard settlement instructions (SSI) and ISDA provision as well as:
3	7	1				-  Deal number.	FS
3	7	2				-  Bank and/or Federal reference number and time stamp.	FS
3	7	3				-  All details of the transaction.	FS
3	7	4				-  Underlying spot rate for FX forward and option hedges.	FS
4 Reporting
4	1				Facilities	Please state what tool / application is used for generating reports within the system, and what standard reports are available.	Microstrategy
4	2				Definition hierarchies	System should support multiple definable hierarchies for reporting and analysis.	FS
4	5				Scheduled reports and tasks	System should automatically execute, according to pre-set frequencies (daily, weekly, monthly, start/end financial periods) and at pre-set times standard and report generator reports.	FS
4	6				Multiple distribution reports	Multiple distribution reports should be capable of being run once with output distributed to multiple destinations, and in potentially different formats.	FS
4	7				Output formats	Please define report output formats, including capabilities of producing:		+ excel/ word
4						-  Print.	FS
4						-  E-mail.	FS
4						-  Pdf / text / ASCII file.	FS
4						-  Comma delimited file.	FS
4						-  Web (HTML).	FS
4						-  Fax.	FS
4	8				Back-dated reports	The system should allow reports to be produced for dates in the past using historical rates and other appropriate information.	FS
4	9				Access to value dated data	Reports should have access to:
4	9	1				-  Dated balances.	FS
4	9	4				-  Periodic movements.	FS
4	9	5				-  Dated forecasts vs. actual.	FS
4	10				Selection parameters to include lists	Reports should be capable of being run against user-definable selection lists of parties, currencies, transaction types, etc.	FS
4	11				Charts and graphs for analysis purposes	Please describe the charting and graphing functionality within the system?	FS	All the standard formats.
4	12				Report writer	What level of skill/training is required to write/modify reports?	FS	high level
4	13				Ad hoc query	Ad hoc/query reporting ability	FS	high level
4	14				Deviation reporting	Calculation and reporting of deviation (e.g., forecast vs. actual, budget vs. actual).	FS
5 Analysis - Types
5	1				Scenario analysis	What if and stress test scenario capability with market data upload from outside source (Financial Data Provider) or user-defined data.	NS
5	2				Deal valuation analysis	Valuation capabilities to include booked rate (original), current rate, corporate translation rates, budget rate.	NS
5	3					How is volatility obtained? (FX and interest rate? How many currencies, interest rate indices?).	NS
5	4					Are methodologies comparable to bank valuations?	NS
5	5				Stress Testing: Case definition	System capable of identifying impacts to P&L and limit breach by:
5						-  Type of instrument.	FS
5						-  User.	FS
5						-  Portfolio.	FS
5	6				Stress Testing: Impact to cash forecast	System capable of identifying and displaying impact of stress testing on cash flow forecast.	NS
5	7				Stress Testing: Portfolio analysis	System capable of conducting stress testing on specific portfolios within the system, as well as scenario portfolios.  Treasury should be able to test hypothetical trades and/or portfolios separately.	NS
5	8				Stress Testing: On-line drilldown exposure analysis	Allow for the possibility to drilldown from group-level exposure/position into the underlying transactions.	FS
6 Statutory Reporting and Accounting Standards Issues
6	1				International Accounting Standards compliance (e.g. IAS 32 / 39 / FAS 133)	System must be compliant with all International Accounting Standards as above mentioned.	FS
6	2					Please describe your current and future enhancement and level of customization of these functionalities.	FS	In riskart the Customization level is Total and Complete, the Customers needs normally enhance our product.
6	3				Hedge account effectiveness testing	How does the system perform retrospective and prospective hedge effectiveness testing?	FS
6	4					Are retrospective and prospective hedge effectiveness testing models customizable by the users or they require vendor intervention?	PS	The user can choose the method, but changes on  functions as to be done by the vendor.
6	5				International Accounting Standards compliance (e.g. IAS 32 / 39 / FAS 133) - Certification	List any International Accounting Standards (e.g. IAS 32 / 39 ) compliance certification obtained.		--
6	6				IAS 32 / 39 / FAS 133 implementation	Has your IAS solution been fully implemented at any client sites? If so, please list the clients and provide key contacts for reference purposes.		Partially implemented in Mediobanca. Bruno Mantelli 02.8829.614.
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