Oracle Financial Services Hedge Management
and IFRS Valuations

Oracle Financial Services Hedge Management and IFRS Valuations helps financial services institutions compute the fair value of financial instruments and manage effective hedge relationships. With new IFRS and other regulatory requirements for documentation and transparency, traditional manual and siloed processes used for these functions are no longer practical. Additionally, accounting for financial instruments is complicated by frequent interest rate changes and other shocks in today’s volatile market.

Oracle Financial Services Hedge Management and IFRS Valuations is a next-generation solution that is fully integrated with Oracle’s Financial Services Analytical Applications and shares a common customer account-level data model and application architecture.

Address Regulatory Requirements for IFRS

• Classify and compute Fair Valuation of financial instruments
• Calculate Effective Interest Rate and use as a valuation component
• Compute and monitor effectiveness of hedging relationships
• Provide transparency and auditability of calculations and assumptions

Create and Tune Hedging Strategies for Optimal Capital Utilization

• Monitor retrospective hedge effectiveness
• Apply what-if and stress scenarios to test prospective hedge effectiveness
• Readily handle hedge de-recognition processes
• Obtain a complete view of hedge positions through powerful BI analytics and reporting

Leverage Common Computation Engine for Consistent Valuations

• Leverage common data quality and reconciliation processes across finance and risk applications
• Leverage a common computation engine for consistent valuations between Treasury and Accounting
• Support hedge accounting with an open and extendable data model

Oracle Financial Services Hedge Management and IFRS Valuations (Data Sheet)