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SAP Treasury and Risk Management Overview

Presented by:
Venkatesh B
SAP FICO Consultant
Topics
❖ Introduction
❖ Purpose of SAP S/4HANA TRM.
❖ Role of Treasury and Risk Management
❖ Benefits of SAP S/4HANA TRM
❖ Examples of Some organization
 Introduction
• The SAP S/4HANA Treasury and Risk Management (TRM) module is a comprehensive solution
designed to help organizations effectively manage their treasury operations and mitigate financial
risks.

• Let's delve into an introduction to the SAP S/4HANA TRM module: It fully tracks and makes the
manufacturing process flow.
Purpose of SAP S4hana TRM

• SAP S4hana TRM provides the treasury manager with an instant snapshot of cash effects and
enables prompt cash distribution to the company's strategic areas and different divisions.

• At the same time, the manager can acquire cash in times of need from the most competent and
inexpensive source.
Role of Treasury and Risk Management
Treasury risk management is best defined as overseeing a company's working capital, which includes
making strategic plans on the best ways to keep the enterprise solvent. This involves monitoring financial
risks, such as credit risks and market risks..

1. Treasury and Risk Management.

2. Cash Management.
3. Payment Management.
4. Multi-Bank Connectivity.
5. Working Capital Management.
6. Market Rates Management.
7. Integration
Treasury and Risk Management
• Treasury management is the term for all the activities and processes involved in managing a
company's or organization's money.
• This includes tasks like cash flow forecasting, investing, risk assessment, and day-to-day
operations like banking and invoicing.
Cash Management
SAP TRM provides the treasury manager with an instant snapshot of cash effects and enables prompt
cash distribution to the strategic areas and different divisions of the company. At the same time, the
manager can acquire cash in times of need from the most competent and inexpensive source.
Payment Management
Payment Processing: The TRM module facilitates payment processing, including automated payment
runs, bank statement processing, and reconciliation of bank transactions.
Debt and Investment Management: Organizations can manage their debt portfolios and investments
using S/4HANA TRM.
Multi-Bank Connectivity
SAP Multi-Bank Connectivity supports the exchange of all types of messages. The most relevant
sources of messages are automated, but other sources and message types can also be sent to the
cloud service or can be received.
Working Capital Management
• Working Capital Management (WCM) is short-term financial planning. It is the set of tactics
employed by the Treasury to meet an organization’s cash needs over the upcoming 12 months.

• Technically speaking, “Working Capital” is defined as a company's current assets minus its current
liabilities.
Market Rates Management
Take advantage of an elegant, preconfigured solution to access and manage various types of market
data. With the SAP Market Rates Management application, your global business can access and
distribute market data in SAP S/4HANA or other IT landscapes.
Integration
• SAP Treasury and Risk Management is an integrated solution, in which the various components are
closely linked. The financial transactions managed in the Transaction Manager can be evaluated
and monitored using the analyzer components.

• In addition to the TRM analyzer components Market Risk Analyzer, Portfolio Analyzer, and Credit
Risk Analyzer, the Transaction Manager is also linked to.
 Benefits of SAP S/4HANA TRM

• Transaction Recording - TRM allows for easy recording, verification, rollovers, reversals, and
changes of transactions.
• Market Data Management - Multiple and flexible options to maintain your market data (Manual,
Excel interface, File interface, FTP access, Data feed from service providers)
• Treasury payments - Flexible payment options such as single deals, grouping for a bank, repetitive
payments, and much more.
 Examples of Some organization
Companies in various industries such as banking, insurance, manufacturing, and retail, ext..
bvenkatesh@isupportz.com