"Strike" - exchange rate risk management system

The "Strike" system is proprietary software for monitoring the foreign exchange position of Polish Defence Holding (PDH, formerly Bumar), one of the largest weapons suppliers in Central and Eastern Europe.

The system has been designed by our architects in close cooperation with specialists from the Department of Financial Risk Management at PHO.

Information about Polish Defence Holding

PDH comprises dozens of manufacturing and trading companies in the Polish defence industry, specialising in ammunition, radars, missiles, and armoured vehicles, as well as companies in the sector of building and agricultural equipment, as well as construction services.

PHO provides equipment and services to more than 40 countries, including Europe, Africa, Far East, South America and the United States, winning many international tenders. An efficient exchange rate risk management system is absolutely essential in contracts whose value often reaches several million dollars. It is also required by AQAP - the NATO quality regulations.

Project description

The system allows the recording of foreign currency transactions (hedging/optimisation):

  • Forward futures contracts
  • Put and call Options
  • Foreign exchange swaps
  • Ongoing buying/selling of foreign currency

The primary aim of the system is to monitor open exchange positions, including the capability to perform advanced analyses. To this end, the system retrieves current exchange rates, and operators assess the market value of options. Thus, the completed data significantly facilitate decision making, monitoring the exposure and the degree of protection of individual contracts. Additionally, the system allows a detailed analysis of the results on closed transactions in specified intervals, which allows a detailed evaluation of strategies used and possible adjustments to current operations.

Additional features of the "Strike" are:

  • Generation of posting orders in accounting
  • Generation of reports for the company Board
  • Generation of internal confirmations after each transaction entered
  • Recording of bank confirmations

Due to the elevated level of system security, all activities related to entering and modifications of data are recorded.