Client Story

Bringing Bank-like Efficiency to the Middle and Back Office

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

FIS Adaptiv
Corporate factory

Results

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)

In addition, the team was able to improve compliance with all IFRS 13 rules.

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.

COMPLEX RISK CALCULATIONS

GLOBAL RISK REDUCTION

[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.”
- Alexander Burck, head of corporate financial controlling, Bayer AG

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