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

THM_EXPOSURE256 - Overview

• 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.

THM_EXPOSURE256 - Details

• 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