Empowering Bayer AG
Bayer AG is a global pharmaceutical, consumer health and agriculture powerhouse that was facing treasury management challenges due to rapid shifts in the global economy and increasing regulatory complexities. Working with FIS, Bayer not only modernized its global middle-and-back-office functions but also implemented simulation-based Monte Carlo methodologies to improve how the financial control team measures and manages risks associated with OTC trading and traditional financial activities.
At a Glance
Objective
Modernize global middle-and-back-office treasury management functions.FIS Solutions
Corporate Factory, FIS® Enterprise Risk Suite (formerly Adaptiv)
Results
Bayer elected to implement the Enterprise Risk Suite in a single global platform resulting in Bayer's back-and-middle-office employees, anywhere in the world, being able to conduct fast Monte Carlo-based calculations of risk measures, including: Value at Risk (VaR) Potential Future Exposure (PFE) Credit Valuation Adjustment (CVA) Debt Valuation Adjustment (DVA)Impact
Bayer has been able to reduce its global risk exposure by implementing process efficiencies across the entire trade life cycle, from trade capture to back-office operations and hedge accounting. FIS was also instrumental in helping Bayer to spin off one of its companies and then quickly stand up its own back-and-middle-office operations in less than eight months.
[When selecting FIS] it was a combination of products and people, honestly. Most companies will have great products but they lack the people to implement it, to help you develop it and to show opportunities with the product—and that’s what we like about FIS.”
The FIS capital markets team continues to work closely with Bayer to create new processes to help reduce costs and maintain compliance.