How To Fix TE242 - Negative quadratic form on risk hierarchy node &

TE242 - Overview

• Message type: E = Error

• Message class: TE - Market Risk Management

• Message number: 242

• Message text: Negative quadratic form on risk hierarchy node &

What causes this issue?

The quadratic form is negative because the correlation matrix on the
corresponding risk-hierarchy node is not positively semi-defined. The
value at risk in this case is calculated from the root of the absolute
amount and the quadratic form.

System Response

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

How to fix this error?

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message TE242 - Negative quadratic form on risk hierarchy node & ?

  The SAP error message TE242, which states "Negative quadratic form on risk hierarchy node &," typically occurs in the context of risk management and financial calculations within SAP systems, particularly in the SAP Risk Management module. This error indicates that there is an issue with the risk hierarchy node's configuration or the data associated with it, leading to an invalid mathematical condition.
  
  Cause:
  
  Data Issues: The data associated with the risk hierarchy node may contain inconsistencies or invalid values that lead to a negative quadratic form. This can happen if the risk parameters are incorrectly defined or if there are missing values.
  Configuration Errors: The risk hierarchy itself may not be properly configured, leading to mathematical inconsistencies when the system attempts to calculate risk metrics.
  Modeling Errors: If the risk model or the underlying assumptions used in the calculations are flawed, it can result in negative values that are not mathematically valid.
  
  
  Solution:
  
  Check Data Integrity: