Structure

>120 subsidiaries

Modules

Financial Status
Cash Flow Forecasting
Derivatives
RiskSuite

INTERFACES

FX rates
Volatilities
Correlation matrices

Less risk, less work. The TIP Risk Suite.

About Vorwerk & Co KG

The Vorwerk Group is a diversified international group of companies with its head office in Wuppertal, Germany. Its product range includes household appliances, in particular Thermomix multi-purpose kitchen appliances and Kobold vacuum cleaners, as well as carpets and cosmetics. This family-owned company, registered as a limited partnership, employs 624,000 personnel in 70 countries worldwide, of whom over 12,000 are permanently employed and a further 612,000 act as self-employed sales advisers. The group generated sales of EUR 3.6 billion in 2015.

Status quo and objectives

An FX risk perspective has increased in importance for this global group as it has continued to expand. Based on financial positions, cash flows and derivatives, the objective was to be able to calculate and analyse the impact of changes in exchange rates. Given that the company did not wish to implement a TMS, it was necessary to find another way to avoid complex calculations in Excel, which are also time consuming and prone to error.

Implementation of the TIP Risk Suite

This implementation project entailed the setting up of the derivatives module of TIP and an interface for market data. The existing data previously maintained in Excel were also imported into TIP. New transactions can now be captured and automatically taken into account using a simple user interface. At the press of a button, the data from the financial status, forecast, derivatives, exchange rates, volatilities and correlation matrices are now analysed in a computation module and made available via a dashboard report. This makes it simple to simulate hedge transactions and to analyse the impact on the overall risk KPIs (cash flow at risk and value at risk) both reliably and easily.

Outputs

Calculation of risk arising out of exchange rate changes.
Calculation of group risk exposure on the basis of financial positions, cash flows and derivatives.
Risk perspectives for the entire group, divisions and individual subsidiaries.
Analysis of risk contributions from divisions and subsidiaries with a flexible risk horizon.
Simulation of the impact of notional hedge transactions.
Integrated sourcing of market data.
Intuitive dashboard with drill-down functions for analysis purposes.

„TIP enables us to rapidly and simply assess our FX risk – as easily as we always wanted it to be“

Oliver Schmitz,

Corporate Treasury, Vorwerk & Co. KG

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