Managing risk is a daily activity of the financial and treasury team, where the focus is mostly on FX, commodity and interest risks. Xploritas adds insights into risk categories that are generally less covered but form an essential part of solid and successful bank relationship management. Following up on covenants can be relatively easy when it only involves a limited number of covenants with a few banks, but it becomes increasingly complicated when you have multiple covenants, multiple products and multiple entities.
This is why having a complete and clear overview, per bank, of all your covenants, including alerts of any covenants at risk, gives you the information you need to strengthen your position in discussions with banks. In addition to this, having insights into the credit availability per bank, when covering the risk of running out of funding options or the concentration level per bank, is a powerful and valuable
indicator.
For example, the concentration of transaction services within one bank can make operations vulnerable if the bank is not able to operate, for whatever reason, for some time period, or if the concentration of cash and deposits within one bank could be risky. With Xploritas, this information is even more useful because you can monitor cash and deposit concentrations within various entities in scope and gain access to any previously missing insights into potentially risky scenarios in your main risk areas and identify any early warning indicators.
