System and method for exposure management

• US 8,332,298 B2
• Filed: 08/27/2008
• Issued: 12/11/2012
• Est. Priority Date: 06/16/2008
• Status: Active Grant

• Current Assignee: SAP SE
• Original Assignee: SAP AG (SAP SE)
• Inventors: Mueller, Klaus, Loevenich, Reinhold, R, Vinodh A, Jain, Pankaj
• Primary Examiner(s): Akintola, Olabode
• Application Number:
  US12/199,775
• Publication Number:
  US 20090313175A1
• Time in Patent Office: 1,567 Days
• Field of Search: 705/1.1, 705/4, 705/35, 705/36.R, 705/37
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A system, method, and computer-readable medium having instructions stored thereon to implement a method for risk exposure management allowing an exposure record to influence one or more risk exposures. In an embodiment, an exposure record is received, at least one data element of the received exposure record being mapped to one or more subexposures. At least one of the one or more subexposures are mapped to one of one or more exposure positions, wherein each exposure position corresponds to exactly one of the one or more risk exposures.

Claims

1. A method for risk exposure management that allows a sales record to influence at least one risk exposure, the method comprising:

identifying an item transacted from a line item in a sales order, the line item including an identifier of the item transacted, a quantity unit of the item transacted, and a payment term of the item transacted, wherein the item transacted includes a component;

comparing, using a processing device, the identifier of the item transacted to those in a lookup table;

identifying from the lookup table as a result of the comparing, the component of a transacted item and an allocation quantity of the identified component, wherein the allocation quantity represents an amount of the identified component included in the transacted item;

creating a sub raw exposure record for the identified component, the sub raw exposure record including the quantity unit of the item transacted in the line item and the identified allocation quantity of the identified component from the lookup table; and

mapping, using the processing device, data in the created sub raw exposure record to an exposure position for the identified component, the exposure position representing an aggregated exposure for the identified component calculated in part from the quantity unit and the identified allocation quantity in the sub raw exposure record.

2. The method of claim 1, further comprising receiving the sales record through at least one of a manual entry, an automatic entry, and a sales system.

3. The method of claim 2, wherein the payment term of the item transacted include a currency identifier and a price term.

4. The method of claim 3, further comprising creating a currency exposure record based on a currency specified in the currency identifier, the currency exposure record including the currency identifier, the price term, and the quantity unit of the item transacted.

5. The method of claim 4, further comprising mapping data in the created currency exposure record to an exposure position associated with the currency specified in the currency identifier, the currency exposure position representing an aggregated exposure to the currency specified in the currency identifier calculated in part from the price term and the quantity unit of the item transacted.

6. The method of claim 5, wherein the price term represents a price per quantity unit and the aggregated exposure to the currency is calculated in part from multiplying the price term and the quantity unit of the item transacted.

7. The method of claim 3, further comprising mapping the price term to an exposure position associated with a currency specified in the currency identifier to calculate an aggregated exposure to the currency specified in the currency identifier.

8. The method of claim 7, wherein the aggregated exposure to the currency specified in the currency identifier is calculated in part from the mapped price term.

9. The method of claim 1, wherein a value in the lookup table and the mapping of data to the exposure position correspond to at least one criteria of a planning profile.

10. The method of claim 9, wherein the planning profile is associated with a hedging requirement.

11. The method of claim 1, further comprising generating a flow data object reflecting a mapping relation between the sales order and the exposure position.

12. The method of claim 1, further comprising hedging the exposure position at a hedging system.

13. The method of claim 12, wherein hedging the exposure position includes:

automatically generating an electronic purchase order (P.O.) requesting a purchase of a hedging instrument, wherein the P.O. includes a unique identification of the exposure position;

transmitting the P.O. to a marketplace;

receiving from the marketplace a responsive transaction notification message including a transaction detail and a copy of the unique identification;

automatically generating a hedging instrument data object based on the transaction detail; and

based on the copy of the unique identification, associating the hedging instrument data object with the exposure position.

14. The method of claim 1, further comprising analyzing the exposure position at a risk management system.

15. The method of claim 1, further comprising calculating a value at risk for the exposure position at a risk management system.

16. A non-transitory computer-readable storage medium with an executable program stored thereon, wherein the program, when executed, instructs a processor to perform steps comprising:

identifying an item transacted from a line item in a sales order, the line item including an identifier of the item transacted, a quantity unit of the item transacted, and a payment term of the item transacted, wherein the item transacted includes a component;

comparing the identifier of the item transacted to those in a lookup table;

identifying from the lookup table as a result of the comparing, the component of a transacted item and an allocation quantity of the identified component, wherein the allocation quantity represents an amount of the identified component included in the transacted item;

creating a sub raw exposure record for the identified component, the sub raw exposure record including the quantity unit of the item transacted in the line item and the identified allocation quantity of the identified component from the lookup table; and

mapping data in the created sub raw exposure record to an exposure position for the identified component, the exposure position representing an aggregated exposure for the identified component calculated in part from the quantity unit and the identified allocation quantity in the sub raw exposure record.

17. A system for risk exposure management that allows a sales record to influence one or more risk exposures, the system comprising:

an arrangement configured to identify an items transacted from a line item in a sales order, the line item including an identifier of the item transacted, a quantity unit of the item transacted, and a payment term of the item transacted, wherein the item transacted includes a component; and

a processing device arrangement configured to;

compare the identifier of the item transacted to those in a lookup table;

identifying from the lookup table as a result of the comparing, the component of a transacted item and an allocation quantity of the identified component, wherein the allocation quantity represents an amount of the identified component included in the transacted item;

create a sub raw exposure record for the identified component, the sub raw exposure record including the quantity unit of the item transacted in the line item and the identified allocation quantity of the identified component from the lookup table; and

map data in the created sub raw exposure record to an exposure position for the identified component, the exposure position representing an aggregated exposure for the identified component calculated in part from the quantity unit and the identified allocation quantity in the sub raw exposure record.