Currencies

New to this diagram? Learn about the method: Use Case Tree · Use Case · Outcome

Currencies manages currency usage by entities including functional currency determination, currency conversions, exchange rates, and currency exposure analysis. This use case addresses tracking all currencies used by entities, connecting currencies to exchange rates and conversion factors, tracking currency usage and exchange rates over time, analyzing currency exposure and risk through relationship analysis, linking currencies to regulatory requirements and reporting obligations, connecting currencies to transactions and financial statements, and supporting financial reporting, risk management, and regulatory compliance through comprehensive currency management.

The Challenge

Organizations face challenges in currency management:

• Multiple currencies — Entities may operate in multiple currencies across jurisdictions
• Functional currency — Determining functional currency for financial reporting
• Currency conversion — Managing currency conversions and exchange rates
• Temporal tracking — Tracking currency usage and exchange rates over time
• Currency exposure — Understanding currency exposure and risk
• Regulatory requirements — Different jurisdictions have different requirements for currency reporting
• Exchange rate volatility — Managing exchange rate volatility and its impact on financials
• Data quality — Maintaining accurate and complete currency records

Why EKG is Required

Enterprise Knowledge Graphs provide powerful currency management capabilities:

• Currency tracking — Track all currencies used by entities and their relationships
• Exchange rate integration — Connect currencies to exchange rates and conversion factors
• Temporal tracking — Track currency usage and exchange rates over time
• Exposure analysis — Analyze currency exposure and risk through relationship analysis
• Regulatory integration — Link currencies to regulatory requirements and reporting obligations
• Transaction linking — Connect currencies to transactions and financial statements
• Multi-entity analysis — Analyze currency usage and exposure across entity portfolios
• Risk assessment — Assess currency risk through exposure and relationship analysis

Business Value

• Financial reporting — Support accurate financial reporting through currency management
• Risk management — Assess and manage currency exposure and risk
• Regulatory compliance — Meet requirements for currency reporting and disclosure
• Operational efficiency — Automate currency tracking and conversion processes
• Strategic insights — Understand currency exposure and optimization opportunities
• Transaction processing — Support accurate transaction processing through currency management