{{organization_name}}
Organization Name
Example: Example: Global Components Group
Enter the organization or treasury portfolio being analyzed.
Ready to Use
Complete Prompt
This prompt has variables that can be replaced with your own information. Copy and use it with your preferred LLM, or try it out in the LearnerBox Prompt Playground.
Act as a senior treasury market-risk professional specializing in foreign-exchange exposure.
Develop a transaction-exposure and Value at Risk analysis framework using the information provided below.
Organization:
{{organization_name}}
Measurement date and horizon:
{{measurement_horizon}}
Currency exposures:
{{currency_exposures}}
Forecast cash flows:
{{forecast_cash_flows}}
Hedges and treasury instruments:
{{hedges}}
Market data and methodology:
{{market_data_methodology}}
Risk limits and policies:
{{risk_limits}}
Analysis requirements:
1. Reconcile exposures by:
- legal entity;
- currency;
- receivable or payable;
- committed or forecast;
- maturity;
- gross and net amount;
- functional currency; and
- accounting treatment.
2. Separate:
- transaction exposure;
- translation exposure;
- economic exposure;
- firm commitments;
- forecast transactions;
- balance-sheet exposure; and
- intercompany exposure.
3. Identify natural hedges and avoid netting exposures that are not legally, operationally, or temporally offset.
4. Calculate net open position by currency and tenor.
5. Design VaR using one or more approved approaches:
- historical simulation;
- parametric variance-covariance; or
- Monte Carlo simulation.
6. Specify:
- confidence level;
- holding period;
- lookback period;
- volatility;
- correlations;
- decay weighting;
- data source;
- treatment of missing data; and
- backtesting.
7. Calculate or outline:
- gross VaR;
- net VaR;
- component VaR;
- marginal VaR;
- stressed VaR; and
- expected shortfall, where policy requires.
8. Add deterministic stress tests for large currency moves, correlation breakdown, illiquidity, and hedge failure.
9. Evaluate hedge effectiveness by currency, tenor, instrument, and accounting designation.
10. Compare exposure and VaR with approved limits.
11. Identify wrong-way risk, settlement risk, counterparty risk, and liquidity risk.
12. Do not invent rates, volatilities, correlations, market data, hedge terms, limits, or accounting conclusions.
13. State model limitations and distinguish VaR from maximum possible loss.
Present the result as:
{{output_format}}
Include:
- exposure inventory;
- net-open-position table;
- natural-hedge review;
- methodology specification;
- VaR outputs;
- expected-shortfall or stressed-risk measures;
- stress scenarios;
- hedge-effectiveness analysis;
- limit utilization;
- backtesting requirements;
- model limitations; and
- treasury actions.Customization Variables
Replace each variable shown in double curly brackets with accurate information from your own professional context.
{{measurement_horizon}}
Measurement Date and Horizon
Example: Example: As at 31 July 2026, 10-day holding period
Specify both exposure date and VaR holding period.
{{currency_exposures}}
Currency Exposures
Example: List currency, amount, receivable or payable, entity, maturity, commitment status, and functional currency.
Provide gross exposures before natural and financial hedging.
{{forecast_cash_flows}}
Forecast Cash Flows
Example: Provide expected foreign-currency receipts and payments by period and confidence level.
Label forecast exposures separately from firm commitments.
{{hedges}}
Hedges and Treasury Instruments
Example: List forwards, options, swaps, natural hedges, notionals, rates, maturities, and counterparties.
Include both economic and accounting-designated hedges.
{{market_data_methodology}}
Market Data and Methodology
Example: Provide approved FX rates, histories, volatilities, correlations, confidence level, holding period, and lookback.
Use approved market sources and model parameters.
{{risk_limits}}
Risk Limits and Policies
Example: Provide open-position, VaR, tenor, counterparty, and hedge-policy limits.
Limits establish the control framework for exposure interpretation.
{{output_format}}
Output Format
Choose the format required for analysis, governance, or model implementation.
Expected Output
A structured FX exposure and VaR framework containing gross and net positions, natural hedges, VaR methodology, stress tests, hedge effectiveness, limits, backtesting, model limitations, and treasury actions.
💡 Important:
The quality of the result depends on the
completeness, accuracy, and relevance of the
information supplied to the AI.
Prompt Characteristics
These characteristics describe the type of thinking, customization, and output structure involved in using this prompt effectively.
Prompt Anatomy
This breakdown explains how the prompt’s major components work together to guide the AI toward a useful, reliable, and well-structured response.
Role
Positions the AI as a treasury market-risk specialist.
Context
Defines currency positions, forecast flows, hedges, methodology, market data, limits, and horizon.
Task
Requires exposure mapping, VaR design, stress testing, and hedge analysis.
Constraints
Prevents invented market data, parameters, limits, hedge terms, and accounting conclusions.
Output Structure
Requires positions, VaR, stresses, hedges, limits, backtesting, limitations, and actions.
Input Variables
Organization, horizon, exposures, forecasts, hedges, market methodology, limits, and output format.
Customization Tips
- Separate firm commitments, forecasts, balance-sheet items, and translation exposure.
- Do not net exposures with different maturities or legal entities without justification.
- Use approved confidence levels, lookback periods, and market data.
- Supplement VaR with stress tests and expected shortfall.
- Backtest model outputs and document exceptions.
Responsible Professional Use
Review Before Applying the Output
AI-generated responses can contain errors, omissions, unsupported assumptions, outdated information, or recommendations that do not reflect your jurisdiction or professional context.
Verify calculations, evidence, regulations, standards, policies, and professional recommendations before relying on the result. The qualified professional remains responsible for the final decision.