What is add-on risk category in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: add-on risk category

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Template-based classification of transactions in terms of their risk. Examples: Interest rate risk Exchange rate risk Stock price risk

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• Key Concepts: 
  Add-on risk category is a component of the Credit Risk Management (FS-BA-PM-CR) module in SAP. It is used to define the risk categories for customers and vendors, and to assign them to credit limits. The risk categories are used to determine the credit limit for each customer or vendor. 
  
  How to use it: 
  To use the add-on risk category, first define the risk categories in the system. This can be done by entering the risk category name, description, and credit limit. Once the risk categories are defined, they can be assigned to customers or vendors. This can be done by selecting the customer or vendor in the system and then assigning them a risk category. 
  
  Tips & Tricks: 
  When defining the risk categories, it is important to consider the credit limit that will be assigned to each customer or vendor. This will help ensure that customers and vendors are not given too much or too little credit. Additionally, it is important to regularly review and update the risk categories as needed. 
  
  Related Information: 
  For more information on Credit Risk Management in SAP, please refer to the SAP Help Portal (https://help.sap.com/viewer/product/SAP_ERP_Financials/6.0_SPS00/en-US). Additionally, there are many online resources available that provide detailed information on how to use Credit Risk Management in SAP.