X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

As credit quality plunged in the second half of 2008, Microsoft realized that it had people attentively tracking credit risk and aggressively managing it from separate silos. One group watched the investment portfolio. Another watched accounts receivable. A third watched counterparties in derivatives transactions. Yet another kept a close eye on depository banks. What the company needed and swiftly invented was a “360-degree view,” something that pulled together all its credit risks into one holistic view, explains Jared Bean, quantitative manager.

If a large bank, for example, held significant Microsoft deposits; was a counterparty for derivative transactions; owed accounts receivable balances to Microsoft for software it had licensed; and had issued securities that were held in Microsoft’s $15 billion investment portfolio, the risk to Microsoft if that bank went under could only be accurately assessed if all these risks were cumulated, Bean says. So Microsoft, with its considerable information technology resources, integrated the silos and created the 360-Degree Exposure Report. It did the project within established budgets, hiring no additional staff and demanding no additional ongoing resources from internal groups. Since this is Microsoft, the report has a nifty graphic spin. Bubbles of different sizes and colors are placed within X and Y axes representing the type and magnitude of exposure.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.