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

TPM_THX1194 - Overview

• 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