How To Fix RY502 - No volatility shift for interest rate reference & in yield curve & &

SAP Error Message - Details

• Message type: E = Error

• Message class: RY - Messages for RM Basis

• Message number: 502

• Message text: No volatility shift for interest rate reference & in yield curve & &

What causes this issue?

No volatility could be found for reference interest rate &V1& that
could be used as a standard deviation for the risk factor.

System Response

No VaR is displayed for the entire yield curve &V2&(&V3&).

How to fix this error?

Check whether a valid statistic type has been stored in Customizing for
volatility type &V4&. Check whether a volatility (standard deviation)
has been maintained for volatility type &V4& and interest rate
reference &V1& in yield curve &V2&(&V3&).

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message RY502 - No volatility shift for interest rate reference & in yield curve & & ?

  The SAP error message RY502, which states "No volatility shift for interest rate reference & in yield curve & &," typically occurs in the context of financial instruments and risk management within SAP systems, particularly when dealing with interest rate derivatives or yield curves.
  Cause:
  
  
  Missing Volatility Shift Data: The error indicates that the system is unable to find the necessary volatility shift data for the specified interest rate reference in the yield curve. This could be due to:
  
  The volatility shift data not being defined in the system.
  Incorrect configuration or missing entries in the yield curve setup.
  The reference interest rate not being properly linked to the yield curve.
  
  
  
  Configuration Issues: There may be issues with the configuration of the yield curve or the interest rate reference itself, leading to the absence of volatility shifts.
  
  
  Data Inconsistencies: There could be inconsistencies or errors in the underlying data that the system relies on to calculate the volatility shifts.
  
  
  Solution:
  
  
  Check Configuration:
  
  Verify the configuration of the yield curve in the SAP system. Ensure that the interest rate reference is correctly set up and that the necessary volatility shifts are defined.
  Navigate to the relevant configuration settings in the SAP system (usually found in the Financial Services or Treasury modules) and check for any missing entries.
  
  
  
  Define Volatility Shifts:
  
  If volatility shifts are not defined, you will need to create them. This can typically be done in the configuration settings for interest rate instruments or yield curves.
  Ensure that the volatility shifts are correctly linked to the appropriate interest rate reference.
  
  
  
  Data Validation:
  
  Validate the data related to the yield curve and interest rate references. Check for any inconsistencies or missing data that could be causing the error.
  If necessary, consult with your data management team to ensure that all relevant data is correctly entered and maintained.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for specific guidance on configuring yield curves and volatility shifts. This can provide insights into best practices and common pitfalls.
  
  
  
  Contact SAP Support:
  
  If the issue persists after checking the configuration and data, consider reaching out to SAP support for further assistance. They may provide additional insights or patches if this is a known issue.
  
  
  
  Related Information:
  
  SAP Modules: This error is often encountered in modules related to Treasury and Risk Management (TRM) or Financial Services (FS).
  Transaction Codes: Familiarize yourself with relevant transaction codes that pertain to yield curve configuration and interest rate management, such as TPM1, TPM2, or TPM3.
  Documentation: Review SAP Notes and Knowledge Base Articles (KBAs) related to yield curves and volatility shifts for any updates or specific fixes.
  
  By following these steps, you should be able to identify the cause of the RY502 error and implement a solution to resolve it.