How To Fix VAL855 - Loss given default: &1

SAP Error Message - Details

• Message type: E = Error

• Message class: VAL - Treasury: Messages for General Valuation

• Message number: 855

• Message text: Loss given default: &1

Self-Explanatory Message

Since SAP believes that this specific error message is 'self-explanatory,' no more information has been given.The majority of messages in the SAP system have a message text, however this is frequently insufficient to comprehend or resolve the problem.

To make things easier, more detailed information is frequently added to describe the issue, how to fix it, and the necessary steps or configuration modifications.

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Smart SAP Assistant

• What is the cause and solution for SAP error message VAL855 - Loss given default: &1 ?

  The SAP error message VAL855, which states "Loss given default: &1," typically relates to issues in the context of credit risk management, particularly in the calculation of Loss Given Default (LGD) in the SAP Financial Services (FS) module. This error can occur during the execution of risk assessment processes, such as when calculating credit risk parameters for financial instruments.
  Cause:
  The error message VAL855 can be triggered by several factors, including:
  
  
  Missing Data: The required data for calculating LGD may be incomplete or missing. This could include information about defaults, recoveries, or other relevant financial metrics.
  
  
  Incorrect Configuration: The configuration settings for the risk assessment or credit management module may not be set up correctly, leading to issues in the calculation process.
  
  
  Data Quality Issues: There may be inconsistencies or inaccuracies in the data being used for the calculations, such as incorrect values or formats.
  
  
  Calculation Logic Errors: There could be issues in the underlying logic or formulas used to compute LGD, which may not align with the expected parameters.
  
  
  Solution:
  To resolve the VAL855 error, consider the following steps:
  
  
  Check Data Completeness: Ensure that all necessary data for the LGD calculation is available and correctly entered in the system. This includes default amounts, recovery rates, and any other relevant financial data.
  
  
  Review Configuration Settings: Verify that the configuration settings for the credit risk management module are correctly set up. This may involve checking the parameters for LGD calculations and ensuring they align with your organization's risk management policies.
  
  
  Data Validation: Conduct a thorough review of the data being used in the calculations. Look for any discrepancies or errors in the data entries that could lead to incorrect calculations.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on the VAL855 error. This may provide insights into common issues and recommended fixes.
  
  
  Engage Technical Support: If the issue persists after checking the above factors, consider reaching out to SAP support or your internal IT team for further assistance. They may be able to provide more detailed troubleshooting based on your specific system configuration.
  
  
  Related Information:
  
  SAP Financial Services (FS): This module includes various functionalities for managing financial risks, including credit risk assessment and management.
  Loss Given Default (LGD): LGD is a key metric in credit risk management that represents the loss incurred by a lender when a borrower defaults on a loan, expressed as a percentage of the total exposure at default.
  Risk Management Best Practices: Implementing best practices in data management, configuration, and regular audits can help prevent similar errors in the future.
  
  By following these steps, you should be able to identify and resolve the underlying issues causing the VAL855 error in your SAP system.