With CMStrade Limits you can establish a risk aversion profile for your company, to keep its operations within the limits you consider safe for your business.
A risk is presumed anytime the current value of one or more selected indicators exceeds the limit you specified.
Some common indicators monitored are: receivables, net receivables/payables, quantity long, quantity short, quantity net, net unhedged, valuated open.
The indicators can be for single entities, e.g., client, supplier, commodity, or compounded, e.g., by commodity groups for each client, as is practical.
With such flexibility, you can create both overall and detailed limits, so you can set the overall lower (thus early-warning) than the sum of the individual limits!
Also, as CMStrade includes all applications and integrates in real-time, there is no discrepancy among the indicators.
For example, receivables and open valuation perfectly counteract, one increasing as the other decreases.
In CMStrade, you can trust the risk warnings because the values of all the indicators are real and current.
You can use the Limits application from a management viewpoint, to analyse comprehensively and in the light of external events. You can then suspend operations for chosen parties or commodities until the situation improves.
You can also use Limits to trigger Action Policies that will warn or block selected actions, e.g., no contracts can be issued while a client’s receivables and/or a commodity’s open net exceeds limits.
For information on Operations, Output
and Transactions, please see Data.
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