As most of the organizations conduct its business globally, it is exposed to various risks which also define the returns for the company. Pyxis helps corporate treasuries define the market related risks which arise due to the business operations of the company. This also include defining the cash flow impact of various risks.

Pyxis helps corporate treasuries in design and implementation of the risk management framework. Pyxis follow various steps as follows to achieve this objective:

• Analysis of Market Risks arising due to business Operations
• Defining Hedging Program & Risk Monitoring matrix
• Define risks to be hedged, permitted hedge instruments
• Define Risk Controls – Hedge Ratios, maturities, limits etc.
• Define Risk Appetite, Stop Loss Levels etc.
• Hedge program reporting & review
• Front/ Mid / Back office Roles and Responsibilities
• Setting up system for Hedge program management

For setting up of a system for effective management of hedging activities by the corporate treasury Pyxis uses PEM (Pyxis Exposure Manager) which is an application developed by Pyxis specifically for this purpose. The application allows an organization to centrally maintain the exposure information along with the designated hedges (forwards, options etc.). The system has been developed keeping in mind the strong need for better internal controls in treasury operations and monitoring of the hedging program devised by the organization. The system also provides extensive MIS reporting including mark – to – market valuation of trades done, detailed audit reports and has a back end automated end of day process for reconciliation activities. The system also provides dashboard for various stake holders ( such as CFO, head of treasury ) to monitor the performance of the treasury at various levels including cash flows, compliance with Risk Management Policy etc.