Fast-Tracked Risk Reduction & Performance Improvement




CASE STORY

Bank-like Efficiency in the Middle and Back Office

Rapid economic shifts and increasing regulatory complexities have CFOs asking treasurers to improve performance in cash management, banking, debt and funding, investments, and risk management. These challenges are only magnified for a global enterprise like Bayer AG, which develops a vast array of products in the pharmaceuticals, consumer health and crop science spaces.

It’s About People & Process

While working with FIS to modernize global middle- and back-office functions, Bayer 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.

On choosing FIS, Alexander Burck, head of corporate financial controlling, says: “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.”



Find out how FIS helped global giant Bayer AG bring bank-like efficiency to its middle & back office. #empoweredClients
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The Need to Act Like a Bank

“The financial crisis brought a lot of new challenges for us with things like Dodd-Frank and EMIR in Europe coming in, requiring us to be as complex as a bank would be, typically, even though we’re corporate,” says Burck.

Bayer elected to implement the FIS Adaptiv solution 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)

Burck and his team are also able to improve compliance with all IFRS 13 rules.

Adding Value as Operations Change

In addition, FIS was instrumental in helping Bayer spin off one of its companies and establish its own back- and middle-office operations. “Take the implementation of the solution for our spin-off: Implementing a product in eight months is a challenge and FIS didn’t let us down on that project,” Burck says. “I don’t think anybody else could have done it in eight months.”

The FIS capital markets team continues to work closely with Bayer to create new processes to help reduce costs and maintain compliance.

FIS is in a very good position to find the best solution and the best process for customers.

Alexander Burck, Head of Corporate Financial Controlling, Bayer AG



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