How To Fix TE254 - Cholesky decomposition cannot be processed due to zero denominator

SAP Error Message - Details

• Message type: E = Error

• Message class: TE - Market Risk Management

• Message number: 254

• Message text: Cholesky decomposition cannot be processed due to zero denominator

What causes this issue?

During Cholesky decomposition, the demoninator became zero. In detail,
the matrix is not positive definite.

System Response

The calculation cannot proceed. Division to zero is not possible.

How to fix this error?

Check the market data, especially the value for risk factor &V1& and
above.
Check the market data for the same validation date. This could be the
reason for inconsistencies in the values for the correlation
coefficient.

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.