Next-Gen Features that Transform Treasury Operations

The year 2024 is full of planning that comes along with the growing technology.

1. Real-Time Analytics and Reporting Done Better

• Dashboards Go Better and Further: For treasury professionals, real-time analytics dashboards provide a deeper look into financial positions. The new editions for 2024-2025 feature:
• Dynamic Risk Heatmaps: Visualized risks in a given market for various portfolios and regions.
• Cash Flow Waterfall Charts: Visual representation of cash movement and positions to be forecasted.
• Regulatory Compliance Scorecards: Overall compliance metrics for a given treasury in real-time.

Predictive Analytics Integration

SAP’s treasury machine learning algorithms now predict and forecast with greater accuracy.

• Forecast cash positions.
• Predict the impact of volatility on the portfolios
• Predict the change of regulations and the associated cost.

2. Execution and Trading Done Better and Automatically

• Trade Automation Done Right: Cross-border payments, cash and payment forecasts, and financial accounting now fully integrate with the SAP S/4HANA treasury and risk management cloud. It now enables automated financial trades to be done for foreign exchange risk management, investments, and borrowings. The S/4HANA cloud provides:  
• Smart Order Routing: Trading venues and counterparties are automatically selected.
• Risk-Based Trade Limits: Real-time risk assessment revises dynamic position limits.
• Algorithmic Execution: Trading impact on the market and optimal trading time are done with advanced algorithms.

The recent update enables direct integration with important and major trading platforms such as

• Multi-bank trading portals.
• Electronic communication networks (ECNs).
• Foreign exchange aggregation platforms.
• Fixed income trading systems.

3. Comprehensive Cash and Liquidity Management

• Unified Cash Visibility: The most recent editions (2024-2025) explain the overview of the world’s cash positions, which includes
• Multi-Entity Cash Pooling: Automated cash concentration and zero-balancing for subsidiaries as well as automated cash concentration and zero-balancing.
• Real-Time Bank Connectivity: Direct interfaces with banking partners for balance updates and instant updates on balance.
• Cross-Currency Cash Optimization: Intelligent allocation of cash across currencies and regions.   

Advanced Forecasting Capabilities

The SAP S/4HANA Cloud solutions offer the Treasury and Working Capital Management modules, which use the liquidity-based approach to enhance the functions and existing. These solutions effectively resolve liquidity and cash concentration challenges while building a strong cloud financial structure for cash and financial risk management.

Recent forecasting features are as follows:

• Predictive cash flow forecasting using machine learning
• Stress testing scenario modeling
• Integration with systems for planning operations
• Real-time responsive forecast modifications based on changes in the market

4. High-Level Risk Management Structure: Analytical Risks in a Multidimensional Perspective

The platform now provides comprehensive risk analysis capabilities within a single framework:

• Risk Management of the Market:  
• Monte Carlo simulation-based Value-at-Risk (VaR) calculations
• Stress testing for highly unrealistic hypothetical scenarios
• Calculation of options and derivatives portfolio greeks
• Analysis of credit spreads for fixed income instruments

Assessment of credit risk:

• Monitoring of counterparty risk in real time
• Automated notification for pre-set credit limit breaches