How To Fix RY628 - Complete portfolio VaR is zero; VaRC calculation prevented

RY628 - Overview

• Message type: E = Error

• Message class: RY - Messages for RM Basis

• Message number: 628

• Message text: Complete portfolio VaR is zero; VaRC calculation prevented

What causes this issue?

Either the risk hierarchy is unsuitable, or no volatilities are
available.

System Response

The VaR contribution (VaRC) cannot be calculated.

How to fix this error?

Check the risk hierarchy and make sure that it contains the risk factors
relevant for the financial transactions.
Make sure that volatilities for the relevant risk factors exist in the
market data tables.

Procedure for System Administrators

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message RY628 - Complete portfolio VaR is zero; VaRC calculation prevented ?

  The SAP error message RY628, which states "Complete portfolio VaR is zero; VaRC calculation prevented," typically occurs in the context of Value at Risk (VaR) calculations within the SAP Financial Services module, particularly in the Risk Management area. This error indicates that the system has determined that the total Value at Risk for the portfolio being analyzed is zero, which prevents the calculation of the VaR component (VaRC).
  Causes:
  
  Empty or Inactive Portfolio: The portfolio being analyzed may not contain any active positions or trades, leading to a zero VaR.
  Data Issues: There may be missing or incorrect data related to the financial instruments in the portfolio, such as market prices, risk factors, or positions.
  Risk Factors: The risk factors used in the VaR calculation may not be properly defined or may not apply to the instruments in the portfolio.
  Calculation Parameters: The parameters set for the VaR calculation (e.g., confidence level, holding period) may