Stahr Treasury Software Help
Reporting - FX STRESS TEST
A stress test is showing the impact in the group income statement as maximum loss result if the
exchange rate is shifting a certain percentage up or down. The stress test is made for the group’s
overall foreign exchange exposure, whereas the source is the fx exposure report in Transactions ->
FX Exposure. That means, please make sure that all exposure reports are made before starting the
stress test. In order to enable a state of the art fx risk management, every treasury department
should work frequently with these numbers and should mention it in every top-level report to the
Group-Treasurer, CFO or Executive Board in line with the absolute fx exposure number, calculated in
menu Reports -> FX Group Exposure.
To generate a stress-test report, just select the month to be reported, the desired base-exchange rate
and the desired shift ratio. Most common are shifts for 5% and 10%. Afterwards click “Get Report”.
All numbers are expressed in the group’s functional currency
for all currencies entered in menu Standing Data ->
Currencies.
Worst Case
In the worst case scenario only all negative impacts are
calculated. That means, it cannot come worser than this
number shows.
Best Case
The best case scenario shows negative and positive impacts
on the shift. This is the likely case of a shift.
