New FASB and SEC rules require extensive risk management reporting from corporations that use derivative transactions to hedge their exposures. FEA's VaRworks brings portfolio-level Monte Carlo and Analytic Value-at-Risk to your desktop. The associated software library, VaRlib, delivers VaRworks capabilities to systems integrators. A supporting tool, MakeVC, allows you to create custom volatility and correlation datasets. There are very few systems that deliver high quality analytics for small-scale and desktop level implementations. FEA provides real-life risk management solutions and sophisticated risk management analytics that are accessible, cost-effective, easy to implement and easy to use. One FEA client, a multi-national corporation with operations in North America, Europe, Asia, and Latin America, uses VaR to measure their foreign exchange risk. Despite operating in many locations, the Foreign Exchange activities are centralized at headquarters so as to streamline reporting and ensure proper exposure trading. This company has been using FEA VaRworks successfully since December 1997. On a monthly basis, the Foreign Exchange department discloses results to the Board of Directors. These results include company-wide balance sheet exposures offset by forward hedge items, which ultimately give them a net exposure. In order to arrive at their monthly VaR number, they integrate various systems. Their net exposure positions are input into VarWorks via a simple Microsoft® Excel download. The information is fed into VaRworks, which reports both the diversified and undiversified Value-at-Risk numbers to the Board of Directors. Since the company runs VaR analysis on a monthly basis only, VaRworks gives them a snapshot of their risk on one particular day while also helping them to track specific months of heavy trading activity. VaRworks has proven to be a very helpful and effective analytical tool for disclosure of their foreign exchange risk. Another FEA client, a large, multi-national corporation, uses VaRworks to calculate VaR to comply with SEC risk disclosure requirements. The corporation measures the risk of foreign exchange forward and option contracts used to limit foreign exchange risk from accounts receivable and payable and cash flows generated from anticipated transactions denominated in foreign currencies. The corporation also measures the risk of short-term and long-term interest rate and currency swap agreements used to reduce its exposure resulting from adverse fluctuations in interest rates or foreign currency exchange rates on underlying debt instruments. In addition to VaRworks and MakeVC, other FEA products that may be of interest to corporations are: @EQUITY @INTEREST @GLOBAL StructureTool @ENERGY/Basic and Advanced @ENERGY/Forward Curve @ENERGY/Storage @ENERGY/Swing @ENERGY/Weather Click on a product name for a detailed description and a list of features. We would be happy to provide a personal demonstration of any product, or feel free to contact us to talk with one of our staff directly.