How To Fix THM_EXPOSURE256 - Interest rates and currency risks exist simultaneously for risk object &1

SAP Error Message - Details

• Message type: E = Error

• Message class: THM_EXPOSURE - E-Hedge Accounting: Exposure

• Message number: 256

• Message text: Interest rates and currency risks exist simultaneously for risk object &1

Trados Memory = TR

What causes this issue?

Different cash flows in risk object &1 have cash flow types that
sometimes lead to an interest rate risk and other times include a
currency risk.

System Response

The hedge plan cannot be created for the risk object.

How to fix this error?

Only use cash flow types in the risk object that lead to the same risk
category in <LS>E-Hedge Accounting</>.

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 THM_EXPOSURE256 - Interest rates and currency risks exist simultaneously for risk object &1 ?

  The SAP error message THM_EXPOSURE256 indicates that there are simultaneous interest rate and currency risks associated with a specific risk object in the Treasury and Risk Management module. This message typically arises when the system detects that a financial instrument or risk object has exposure to both interest rate fluctuations and currency exchange rate changes.
  Cause:
  
  Simultaneous Risks: The risk object (e.g., a loan, investment, or derivative) is exposed to both interest rate risk (changes in interest rates affecting cash flows) and currency risk (changes in exchange rates affecting the value of cash flows).
  Configuration Issues: There may be a misconfiguration in the risk management settings or the way the financial instruments are set up in the system.
  Data Entry Errors: Incorrect data entry or incomplete information regarding the financial instruments can lead to this error.
  
  Solution:
  
  Review Risk Object: Check the details of the risk object in question. Ensure that the exposure to both interest rates and currency risks is correctly defined and understood.
  Risk Management Configuration: Verify the configuration settings in the Treasury and Risk Management module. Ensure that the system is set up to handle simultaneous risks appropriately.
  Data Validation: Validate the data entered for the financial instruments. Ensure that all relevant fields are filled out correctly and that the instruments are set up to reflect their actual risk profiles.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling this error message. There may be specific steps or configurations recommended for your version of SAP.
  Engage with SAP Support: If the issue persists, consider reaching out to SAP support for assistance. They can provide insights based on the specific configuration and version of your SAP system.
  
  Related Information:
  
  Risk Management in SAP: Understanding how SAP handles risk management can provide insights into why this error occurs. Familiarize yourself with the concepts of interest rate risk and currency risk within the context of SAP Treasury.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP that pertain to risk management, such as those for managing financial instruments and risk exposure.
  Training and Resources: Consider training sessions or resources on SAP Treasury and Risk Management to better understand how to manage and configure risk objects effectively.
  
  By addressing the underlying causes and following the suggested solutions, you should be able to resolve the THM_EXPOSURE256 error message in your SAP system.