How To Fix TPM_THX1194 - Risk of selected hedging instr. &1 doesn't match with risk category

SAP Error Message - Details

• Message type: E = Error

• Message class: TPM_THX1 - Treasury: Message Class for P-HA

• Message number: 194

• Message text: Risk of selected hedging instr. &1 doesn't match with risk category

What causes this issue?

The Risks marked in the Position Management Procedure of the Hedging
Instrument 's Position does not match with the Risks of the Hedging
Relationsship.

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?

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message TPM_THX1194 - Risk of selected hedging instr. &1 doesn't match with risk category ?

  The SAP error message TPM_THX1194 indicates that there is a mismatch between the risk category of a selected hedging instrument and the risk category defined for the underlying exposure in the Treasury and Risk Management (TRM) module. This error typically arises in the context of hedge accounting, where the hedging instrument must align with the risk profile of the underlying asset or liability being hedged.
  Cause:
  
  Risk Category Mismatch: The hedging instrument (e.g., a derivative) has been assigned a different risk category than the underlying exposure it is intended to hedge. For example, if the underlying exposure is classified as interest rate risk, but the hedging instrument is classified as currency risk, this error will occur.
  Configuration Issues: There may be issues in the configuration of risk categories in the system, leading to incorrect assignments.
  Data Entry Errors: Incorrect data entry when creating or modifying hedging instruments or underlying exposures can lead to this mismatch.
  
  Solution:
  
  
  Check Risk Categories: Review the risk categories assigned to both the hedging instrument and the underlying exposure. Ensure that they match. You can do this by navigating to the relevant transaction in SAP and checking the details of both the hedging instrument and the underlying exposure.
  
  
  Adjust Assignments: If there is a mismatch, you may need to adjust the risk category of either the hedging instrument or the underlying exposure to ensure they align. This may involve:
  
  Changing the risk category of the hedging instrument in the configuration settings.
  Modifying the underlying exposure to match the risk category of the hedging instrument.
  
  
  
  Review Configuration: If the issue persists, review the configuration settings in the SAP system for Treasury and Risk Management. Ensure that the risk categories are correctly defined and that the mapping between hedging instruments and underlying exposures is set up properly.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on managing risk categories and hedging relationships.
  
  
  Testing: After making changes, test the hedging relationship again to ensure that the error is resolved.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional troubleshooting steps.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP for managing hedging instruments and risk categories, such as:
  
  TPM1: Create Hedging Relationship
  TPM2: Change Hedging Relationship
  TPM3: Display Hedging Relationship
  
  
  Training and Support: If you are unsure about making changes, consider reaching out to your SAP support team or consulting with a professional who specializes in SAP Treasury and Risk Management.
  
  By following these steps, you should be able to resolve the TPM_THX1194 error and ensure that your hedging instruments are correctly aligned with their respective risk categories.